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Chinese cargo vessels lie empty in port amid economic downturn: ship owners

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Marine tracking sites show a number of apparently static vessels in major trading ports

Chinese cargo vessels lie empty in port amid economic downturn: ship owners

Icons indicating cargo vessels are seen in Xiangshan Port on Wednesday, Aug. 16, 2023, on the online ship tracking website MarineTraffic.com.

Ports on China’s eastern seaboard are littered with empty cargo vessels with no loads to carry, amid an ongoing downturn in the domestic economy, according to ship owners.

One ship owner posted data from a local marine tracking app to social media, claiming that more than 100 vessels are lying unused in Ningde port, with dozens more left at anchor in Xiangshan harbor in the eastern province of Zhejiang.

A brief survey on MarineTraffic.com on Wednesday showed around 50 Chinese-flagged cargo vessels in static positions in Xiangshan port, of which 23 had their destination marked as Xiangshan while several more didn’t have a transponder fitted that could indicate their status or destination.

A survey of Ningde port on the same site showed dozens of Chinese cargo ships in port, with Ningde listed as their destination, with dozens of cargo vessels listed as lying in Zhoushan port with no destination. Some had arrived this week, while some had been there for several weeks.

A Chinese ship owner who asked to remain anonymous said almost all of the unused ships now at anchor in ports on China’s eastern seaboard are larger than 100 meters, a claim that was borne out by inspection of in-port listings on MarineTraffic.com.

He said the redundant vessels used to ply coastal trade routes serving domestic trade, and that owners and shipping companies are replacing them with vessels capable of competing on international trade routes.

“The ships just stayed there after they ran out of cargo,” the ship owner said. “They are everywhere, even in the rivers and in many sheltered places along the coast.”

“These ships engaged in coastal transport and domestic trade will always carry the Chinese flag,” he said, adding that traffic volumes along the Chinese coast have plummeted despite the easing of zero-COVID restrictions in December 2022.

“The volume of coastal transportation is directly related to domestic production.”

Tightening control

Financial commentator Zhu Yong said the ruling Communist Party is responding by tightening control over private-sector companies, including in the shipping industry.

“Even private shipowners have to set up party branches [inside their companies],” Zhu said. “The purpose is to strengthen [government] control over resources for combat readiness.”

The Communist Party under supreme leader Xi Jinping is increasingly moving to curb the power of private companies, including setting up party branches inside the country’s tech giants, commentators have told Radio Free Asia in recent months.

Recent structural reforms have placed more power in Xi’s hands, as well as tightening government control over strategic resources like internet data centers and food distribution networks.

An official who answered the phone at the National Maritime Safety Administration in Beijing declined to comment. 

“Our office doesn’t deal with this. You need to call the administrative office, who are open to the public and will know which department is responsible,” the official said.

However, repeated calls to the number rang unanswered during office hours on Monday. 

Repeated calls to maritime safety bureaus in Shanghai and the eastern coastal province of Zhejiang also rang unanswered.

Translated with additional reporting by Luisetta Mudie. Edited by Malcolm Foster.

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