Many containers on the branch water lines can only be 40 per cent loaded. Sharp competition has forced domestic shippers into a war of rates even on international lines. Dry cargo capacity also exceeds demand. The influx of foreign shipping companies, which usually pulled away cargo with high added value, also sharpened the internal war. The result is a painful decline of profits and market share for China's state shipping companies.
Chinese ports charge foreign vessels the same rates with domestic ships.
Central legislators are busy drafting detailed regulations of the Maritime Code, Law of Port and Law of Water Transport, which have been top of the legislative agenda. Industry experts have long pointed out the inadequacy of market rules during the market transformation. The situation along branch waterway transport is even worse. Local communications departments and ports are adopting their own rules to regulate their market. Chongqing and Shanghai authorities also enhanced their control over shipping along the Yangtse, the country's largest river.