China is planning to boost its trade by reducing the port fee for imports and exports further, market sources informed SSESSMENTS.COM. China is facing lower external demand as the COVID-19 pandemic continues to wreak havoc on the global economy. The Transport Ministry said cargo and container throughput at the country's ports dropped by 4.6% and 8.5% year-on-year in the first quarter, respectively. These figures highlight the challenges to reach a full economic activity during the pandemic.
Last month, China reduced or suspended some port fees from March 1 to June 30. Some Chinese coal importers estimated that it would benefit them with around $1/ton. However, they expected to be unable to take full advantage of the planned fee reduction due to tighter import quotas. Some Chinese coastal provinces have been tightening restrictions on imported coal, reportedly to protect the domestic market which has already oversupplied.
Market sources expected the planned fee reduction to be implemented in gradual phases and might involve around CNY7 billion ($1 billion) in cost savings for users of Chinese ports. The authorities have yet to reveal the exact timeframe of the proposed fee reduction.
