Shanghai ranked seventh among international shipping centers, the Xinhua-Baltic Exchange International Shipping Centers Development Index showed. Singapore ranked No 1, followed by London and Hong Kong. The other top-10 cities in the ranking are Rotterdam, Hamburg, Dubai, Tokyo, New York and Busan. The index evaluates 46 global shipping centers by their port facilities, maritime services and overall environment. Marcus Lee, Chief Representative in China of the Baltic Exchange, said Shanghai lags in maritime services. Shanghai remained the world’s busiest container port in 2013 as its throughput rose 3.3% to a record 33.6 million TEU. The index was jointly launched by CFC Holding Co, a subsidiary of Xinhua news agency, and the Baltic Exchange.

Container throughput at major domestic ports has been on the upswing since March, indicating that foreign trade will keep growing in the months ahead and meet the government’s targets this year. According to Chineseport.cn, container throughput at the nation’s top 10 ports was up more than 7% year-on-year in April, after expanding 6.5% in March. The increase “sent a strong signal that China’s foreign trade is still showing a good performance, despite growing worries that the world’s second-largest economy is slowing down”, said Xiao Feng, Deputy General Manager of Shenzhen Onetouch Business Service Co, a trade service provider. The increased volumes are “a true picture of China’s current trade, which has benefited from a steady recovery in the United States and Europe and surging demand from the Asian market,” Xiao said. Container throughput at Ningbo, Zhejiang province, increased more than 20% year-on-year in April, while Shanghai, the country’s largest port by capacity, saw a 6% increase last month, Chineseport.cn said. The container volume figures stood in marked contrast to the trade slowdown in value terms. Total trade contracted 3.1% year-on-year to CNY8.1 trillion in the first four months. In April alone, total trade slumped 1.3% year-on-year, following a 6.5% decline in March, according to the General Administration of Customs. According to Xiao, last year’s export figures were probably distorted as some companies inflated their export orders to channel capital into China. The practice has been curtailed by the recent yuan depreciation and tighter controls by the authorities. Exports to Hong Kong plunged 33.1% year-on-year in the first four months, as many false trade declarations filed last year were described as exports to Hong Kong, the China Daily reports.

China Rongsheng Heavy Industries Group Holdings, one of China’s biggest shipbuilders, signed a USD1 billion contract with a European shipowner to build up to 36 bulk carriers within the next three years, thanks in part to a strong global shipping market. Of the total, 24 are confirmed orders and 12 are optional so that the shipowner can buy them at a fixed price in the future to hedge against unpredictable spikes in ship prices. The buyer can also choose not to buy if shipping rates go down. Among the 24 confirmed orders, 18 were signed by Rongsheng last year at a lower price, but the terms were renegotiated at a higher order price given the robust status of the dry bulk shipping market. Rongsheng refused to disclose the identity of the buyer. In the first quarter, new orders by Chinese shipbuilders have grown 170% from a year earlier, among which 96% were from foreign buyers, according to the China Association of the National Shipbuilding Industry. All the 36 ships to be delivered are dry bulk carriers of 64,000 DWT. According to Clarkson Research, Rongsheng is the world’s third-largest shipbuilder and the largest in China in terms of orders on hand at the end of December 2012. The company reported a loss of CNY8.7 billion for last year.

Marine insurance companies and reinsurance firms in Shanghai do not need to apply for administrative approval to set up sub-branches in the city’s free trade zone (FTZ), the first time the China Insurance Regulatory Commission (CIRC) has dropped the requirement. Additionally, all types of insurance sub-branches in the zone will be able to appoint new heads without getting the regulator’s approval, the CIRC said in a statement. The latest move seeks to boost insurance businesses in the FTZ. The CIRC also said the Shanghai Marine Insurance Association will develop marine insurance policies and registration with the regulator. Pei Guang, Director of the Shanghai Insurance Regulatory Bureau, pointed out that it is the first time an industrial association is allowed to register new policies, the first time marine insurance agents can set up sub-branches, and the first time setting up sub-branches do not need approval. The Association now has 31 members, of which 25 are insurance companies. Tu Guangshao, Vice Mayor of Shanghai, said the measures are part of market liberalization policies.

The net profit of China Merchants Holdings (International) rose 10.3% to HKD4.2 billion last year, with the port operator attributing the “satisfying results” to increased handling capacity and earnings from overseas acquisitions. The throughput handled by the company rose 18.5% to hit a record 71.32 million TEU. Overseas port projects contributed, for the first time, more than 10% of total throughput. Since the second half of 2012, the firm had acquired port operations in Djibouti, Taiwan and France. Total throughput contributed by the overseas projects reached 7.49 million TEU last year. Vice Chairman Li Jianhong said he was confident the overseas projects would further demonstrate their potential this year. Emerging markets, including Africa, South Asia and the Middle East, were all under consideration for further expansion. However, the acquisitions added debt pressure to the company’s financing structure. By the end of last year, its interest bearing debts had increased by HKD8.1 billion, raising its net gearing ratio to 42.1% from 27.3%. The company also announced it would issue mandatory convertible securities to raise HKD15.3 billion to repay debt and as capital expenditure.