Shanghai – a dynamic seaport, a global maritime city [ANALYSIS]

Shanghai is a model seaport, thriving in symbiosis with a dynamically developing city, benefiting fully from China’s rapidly growing economy. Shanghai is a leading gateway for Chinese exports. It is also a hub for maritime businesses, financial, legal, and agency institutions. It is a rapidly rising star in global maritime logistics. Chipolbrok, the Chinese-Polish Joint Stock Shipping Company, which operated from  1951, also has its headquarters here, on Yan’an East Road.

The Chinese government understands the importance of a seaport and supports its development. It is therefore no surprise that Shanghai maintained its status as the world’s most efficient container port in 2024, according to the Xinhua-Baltic International Shipping Centre Development Index (ISCDI). And it will certainly maintain this position in 2025. In the first half of 2025, the Port of Shanghai saw significant growth in both cargo and container handling.

The port’s cargo turnover exceeded 9.3 million tons in January and February, representing a 1% year-on-year increase. Container turnover during the same period reached 8.9 million TEU, a 7% increase compared to the same period last year. Furthermore, in January alone, the Port of Shanghai handled over 5 million TEU, setting a new world record for monthly container handling. Container handling increased sharply in April and May, with 4.5 million TEUs handled in April (a 7.7% increase) and 4.65 million TEUs in May (a 10.2% increase), according to the Port Authority.

Shanghai in the global maritime logistics network. Source: Theo Notteboom, Athanasios Pallis, Jean-Paul Rodrigue, Port Economics, Management and Policy, 2022

Customs offices operating in Shanghai have cited efficient logistics and streamlined customs clearance as key factors in the growth of car transshipment. Emphasis is placed on solutions such as time-based appointment services, which reduce vessel waiting times. “Green channels” play a significant role, ensuring priority handling and simplifying car export procedures, ISS emphasizes. Shanghai’s proactive approach to efficiently handling LNG-powered vessels is also highlighted.

China’s first ship-to-ship LNG bunkering operation was recently completed at the COSCO Shipping Heavy Industry terminal in Shanghai, located at the shipyard’s quayside. This operation, involving direct transshipment of LNG between ships, shortened container ship turnaround times by at least two days, saving over $200,000 in charter costs, the shipyard emphasizes.

Source: MOMEX

Although Shanghai ranked third in the Xinhua-Baltic Exchange (ISCDI) rankings, it still holds the position of the world’s largest container port. In 2024, it topped the global container transshipment ranking for the fifteenth consecutive year. During 2024, Chinese port workers handled 51.51 million TEU. This resulted in an increase in turnover from 49.16 million TEU recorded in 2023, representing a 4.8% increase in supply.

Shanghai’s leading position, according to ISCDI, stems from the fact that hundreds of maritime companies have branches in the city. Major insurers such as China Pacific Insurance and Ping An Insurance have their headquarters here. Nearly all leading P&I clubs operate in Shanghai. The Shanghai Free Trade Zone also provides the city with a competitive advantage over other regions. Manufacturing and logistics services are not the only industries developing in the zone.

Here, companies targeting the international market and global trade receive significant support. In Shanghai, companies exporting their production or goods are provided with top-tier shipping services and financial support. This attracts maritime institutions to the city, emphasize the authors of the ISCDI index.

 Source: China State Shipbuilding Corporation

A Shipyard with a Prospective Portfolio

Shanghai is also home to one of the largest shipyards. China State Shipbuilding Corporation (CSSC) and its subsidiaries operate in the region’s largest shipyards. Ship repair, conversion, and dockside survey services are also offered here. This position has led the publicly listed China CSSC Group to report strong results for 2024. Sales reached $10.8 billion, with profits increasing by 22%.

The China State Shipbuilding Corporation Limited (CSSC) “2024 Annual Report,” published in April of this year, reported that “CSSC’s operating income in 2024 was 78.58 billion yuan (approximately $10.805 billion), a 5.0% increase year-on-year; and net profit attributable to shareholders was 3.61 billion yuan (approximately $496 million), a 22.2% increase year-on-year.”

The annual report emphasizes that “in terms of technological innovation, CSSC has strengthened research and development of key technologies and promoted the design and construction of new types of ships, especially LNG carriers and cruise ships.” Furthermore, the report points out that CSSC is constantly advancing in the fields of smart manufacturing and green development, creating positive initiatives and promoting high-quality development.

Shanghai’s Financial and Shipping Industry

Shanghai is a global powerhouse in maritime finance and law. State-owned banks and financial institutions, such as Bank of China and ICBC Leasing, offer shipowners key leasing and structured financing options, while many utilize Shanghai’s bond and stock markets to raise much-needed capital, according to a report from Xinhua and the Baltic Exchange.

Shanghai is home to specialized maritime courts and legal institutions. Legal regulations are in compliance with international maritime conventions and Chinese maritime law. The Shanghai International Shipping Institute and the China Maritime Arbitration Commission (CMAC), which have been operating here for years, have been strong players in the Asian and global shipping markets.

In recent years, they have seen an increase in maritime dispute resolution services involving charter parties, bills of lading, collisions, salvage, marine insurance, and shipbuilding contracts. Shanghai is constantly strengthening its position as one of the largest maritime centers in the world, and it is precisely its world-class port infrastructure that ensures that more and more shipowners direct their ships to the port each year.

Container Seaport Giant

Transshipment trends at PSA China’s terminals in Yangshan and the automated facilities in Waigaoqiao contributed to the sustained year-on-year growth of container supply in Shanghai. Transshipment growth was recorded despite the disruption to global trade caused by new conflicts and the ongoing war in Ukraine. Approximately 90% of the port’s containers were transshipments, highlighting Shanghai’s role as a key transshipment hub connecting the East-West and North-South trade logistics routes.

The port’s strong position is ensured by long-term agreements with inland terminals along the Yangtze River. These are additional advantages in expanding the reach of logistics networks from central China to Shanghai, which has become a gateway to the world for many operators and manufacturers living off imports and exports. Xinhua analysts emphasize that “When congestion at the southern entrance to the Red Sea forced carriers to reroute via the Cape of Good Hope, Shanghai’s port community quickly adjusted berth schedules.”

Terminals increased nighttime staffing and deployed additional cranes to cope with sudden delays. Local reports indicated that thanks to these organizational measures and flexible berth access management, average vessel turnaround times were reduced to less than 24 hours. This allowed importers and exporters to avoid additional delays on global trade routes.

Infrastructure development is proceeding at a rapid pace, with upgrades at the Yangshan Deepwater Port and Waigaoqiao Phase 4 improving berth depth, yard capacity, and rail connections. While no new berths are scheduled to open in 2024, Shanghai International Port Group (SIPG) has completed dredging and yard expansion. Access has been improved for the growing number of ultra-large container vessels (ULCVs) entering the global fleet on a large scale.

Container ships, each capable of carrying up to 24,000 TEU containers, are now being handled seamlessly at the quays. Furthermore, Shanghai International Port Group (SIPG) has modernized the rail terminal connecting Waigaoqiao with Ningbo-Zhoushan. This provides an additional track line for container traffic in the event of delays on the waterways.

Construction of a virtually new, automated and eco-friendly container port is underway. In less than eight years, it will be able to handle the world’s largest container ships. Quay cranes will be able to move over 10 million TEUs annually between ships and quays. Cutting-edge automated terminal technologies will be used here. The port will meet all the requirements expected of eco-friendly ports. It is emphasized that environmental standards will be adhered to during construction and operation. According to the Shanghai Port Authority, the new container port is expected to set a new standard for the digital, intelligent, and sustainable transformation of the Shanghai International Shipping Center infrastructure. A new star is emerging on the map of global maritime logistics.