CHINA: An Introduction to Shipping: Southern China (PRC Firms)
An Overview of Shipping Sector in China (2023)
I. Introduction
Following the swift re-opening of China in 2023 after the COVID-19 pandemic, import and export transactions have regained momentum, leading to a shipping market with resumed activities. Nevertheless, the energy security issue induced by the ongoing geopolitical conflicts and the evolving global landscape has produced uncertainty in the shipping industry. Consequently, the stakeholders in the industry, including ship owners, cargo owners, and clubs, are advised to remain vigilant and proactive in identifying potential commercial and legal risks.
II. Trendy Issues in the Shipping Sector
1. Charter party
The demand for energy and the impact of related sanctions have led to a surge in charter hires for energy vessels like crude oil and LPG vessels, coupled with a shortage in transport capacity. However, active transactions in this sector may increase the likelihood of potential cross-border legal disputes. During the execution of mid or long-term charterparties, significant fluctuations in market hire or freight due to the change of supply conditions can hinder the ongoing performance of the current charter party, potentially resulting in breaches, vessel withdrawals, and disputes between owners and charterers.
Furthermore, the escalation of international sanctions in the shipping and trade sectors can adversely affect the execution by existing charter parties. For instance, vessels may refuse to load cargos or face restrictions when entering designated ports due to potential sanction risks, resulting in demurrage losses and additional costs for diversion.
Such disputes and claims can give rise to subsequent reactions and events that may impact third parties, including entities along the charter party chain, financiers, and insurers associated with the vessel. In the event of a dispute, prompt responses are crucial, involving commercial negotiations and necessary legal actions. Interim measures such as ship arrest may be pursued, and the selection of proper jurisdictions is important to ensure effective resolution of the dispute.
2. Container shipping
In the field of container shipping, with the restoration of international supply chain, the freight of container shipping gradually falls from high level to a reasonable position. It is noteworthy, however, for container lines that the disputes depicted below occur frequently in recent years in this sector.
On one hand, disputes in misdelivery may cause liability on the carriers. Nowadays in Mainland China, there are occasionally claims against carriers for misdelivery, particularly when shipping to countries like Brazil and Venezuela. In such cases, carriers are generally required to deliver containers to local customs authorities, and the carriers may not have full control over the delivery process to consignees, which will often lead to misdelivery claims. For misdelivery claims of this kind, the courts in Mainland China usually impose relatively strict requirement on carriers for adducing evidence. To counter the risks of misdelivery, container lines are advised to improve the procedures for sending notice, discharging and delivery of containers after arrival, to enhance the processes for exchanging delivery order with original bill of lading by local agents, and to maintain written records of delivery operation.
On the other hand, demurrage and detention of containers in ports cause losses to container lines. The reason for such demurrage and detention may vary, such as a delay by local customs authority in providing clearance, a detention or seizure by local customs authority, a consignee’s delay in completing customs clearance and taking delivery, or the consignee’s abandonment of the cargo, etc. When confronted with disputes over container detention, container lines shall take proper measures to mitigate losses, and pursue legal actions to claim indemnity against shippers, consignees or other responsible parties.
The chance of the aforesaid disputes may increase in the near future in view of the slowing down of global economic growth. Hence, handling daily operation in a more detailed manner may help reducing risks of loss and liability.
3. Shipbuilding, sale and ship financing
The shipbuilding and second-hand vessel market has seen a lot of activities in recent years, driven by the overall increase in freight rates and the demand for diversity in energy supply. Both the volume of orders and deal prices have reached at a relatively high level. The Chinese shipbuilding enterprises have been instructed with many orders for newly-built vessels. This trend has impacted too the modification of existing vessels, particularly offshore vessels, and caused the subsequent increase in second-hand vessel sales.
In the realm of financing, market-wide changes in interest rates have led to the gradual return of European banks to the shipping finance business, offering greater diversity in shipping finance options.
Shipbuilding and sales transactions are typically cross-border in nature and often involve financing parties. It is essential for sellers, buyers, and financiers to establish a valid, stable, and balanced transactional structure. Participants are advised to design and implement effective performance security and credit enhancement measures for each transaction. When it comes to cross-border security, special attention should be paid to the foreign exchange control policies in China and their implications.
Additionally, it is recommended to draft customised dispute resolution clauses based on the specific background of the underlying transaction, including the selection of appropriate governing law and jurisdiction or arbitration body.
III. Conclusion
In recent years, the Supreme People’s Court of China has issued and/or renewed a series of judicial interpretations to provide clarity and consistency in judgments regarding foreign commercial and maritime cases. Arrangements have also been put in place between Mainland China, Hong Kong SAR and Macau SAR for recognising arbitration awards and assisting with property preservation measures. In 2022, the Supreme People’s Court of China further issued the Conference Summary on the 2021 National Symposium on Foreign-Related Commercial and Maritime Trial Work. This document clarified a total of 111 issues across 20 aspects related to foreign commercial and maritime judgments. In general, China has embraced a more open and cooperative approach to foreign-related judicial practices through the implementation of relevant arrangements and judicial interpretations. For example, parties involved in Hong Kong arbitrations now have the option to apply to Mainland courts for property preservation measures. Procedurally, most forms of foreign evidence are no longer required to be notarised and legalised. Mainland courts have shown a tendency to adopt more lenient standards when it comes to recognising and enforcing foreign judgments. In addition, there is a trend towards unified and pragmatic judiciary practices regarding foreign-related matters. These measures may help to resolve cross-border maritime and commercial disputes.
The shipping industry in China is sensitive to the global economic climate. It is believed that the year of 2023 will present both opportunities and challenges. From a commercial standpoint, enterprises should closely monitor all relevant policy changes, seize commercial opportunities, and mitigate risks. Accordingly, the lawyers practising in this sector should align themselves with the key market trends and adapt swiftly.
2023年中国航运领域综述
一、前言
步入2023年，新冠疫情后中国迅速开放，推动中国进出口贸易量恢复，航运市场也处于活跃状态。但是，地缘冲突和全球性的地缘政治环境变化引发的能源安全问题为航运市场带来了不确定因素。船东、货主、互保协会等航运利益相关法，有必要预先注意相关的商业和法律风险。
二、航运领域热点问题
1. 租船合同
受能源贸易的需求和有关制裁措施的双重影响，原油、天然气等能源运输船舶租金高涨，运力紧张。活跃的交易可能引发潜在的跨境法律纠纷。在中长期租约的履行过程中，如因供需情况变化导致租金和运价出现大幅波动，租约的持续履行将受到挑战，容易引发租约项下的违约、撤船以及承租双方的其他纠纷。
同时，若航运和贸易领域的国际制裁措施升级，也可能严重影响既有租约的履行。比如，船舶因制裁风险而拒绝载货，或者船舶无法进入特定港口，导致船舶滞期和转港损失等。
此类纠纷和索赔可能会进一步引发连锁反应，进而影响租约上下游的当事人、船舶背后的融资方和保险人等主体。一旦发生争议，当事人应及时做出响应，启动商业谈判和采取必要的法律手段，如采取扣船等保全措施，并选择合适的管辖法域以促使争议得到解决。
2. 集装箱运输
在集装箱运输领域，随着疫情后全球供应链的逐步修复，班轮运输的运价从高位下降，趋于合理。然而，我们也注意到，近期以下法律纠纷在集装箱运输领域多发，值得班轮公司留意：
其一，无单放货纠纷引发承运人责任。目前中国内地针对承运人提起的集装箱无单放货纠纷仍时有发生，尤其涉及巴西、委内瑞拉等地，承运人需要将集装箱交由当地海关监管，可能无法控制货物的交付，常常引发无单放货纠纷。对于此类案件，中国内地法院通常对承运人的举证要求比较高。为应对无单放货风险，建议班轮公司完善货物到港前后的通知、卸货和交付流程，把控当地代理签换提货单的制度，并做好相关文件记录的保留工作。
其二，集装箱滞港引发损失。导致集装箱滞港的原因多样，如当地海关清关延误、货物被海关查扣、收货人未及时报关、延迟提货或弃货等。对班轮公司而言，面对集装箱滞期纠纷，建议及时采取减损措施，同时采取法律措施对托运人、收货人等责任主体进行索赔。
随着全球经济增速放缓，上述纠纷可能进一步增加，班轮公司在日常运营过程中更需要进行精细化操作，降低损失风险。
3. 船舶建造、买卖及融资
受整体运费上涨和能源转型的影响，近年船舶建造和二手船买卖市场非常活跃，订单量和交易价格处于相对高位，中国的造船产业承接了大量新造船订单，也推动了库存船（尤其是海工类船舶）的改造和二手交易。
在融资方面，随着国际市场利率变化，欧洲银行逐步回归航运融资业务，为航运交易提供更多的可能性。
船舶建造和买卖往往属于跨境交易，且相当比例的交易需要融资方参与。无论对于买方、卖方还是融资方而言，一套有效、稳定且利益平衡的交易架构都是必要的。尤其是，当事人需要针对性地设计和安排有效的项目履约担保和增信措施，对于涉及跨境担保的情形，还需特别考虑中国外汇管制的规定及潜在影响。
此外，当事人也应当根据项目具体情况，统筹设计争议解决条款，选择合适的适用法律和管辖法院或仲裁机构。
三、结语
近年来，中国最高人民法院就涉外商事海事领域陆续出台或更新了一系列的司法解释，对有关案件的裁判标准进行明确和统一。内地与香港、澳门也陆续签订了相互承认仲裁裁决和协助保全的安排。2022年，中国最高人民法院进一步出具了具有司法解释效力的《全国法院涉外商事海事审判工作座谈会会议纪要》，就涉外商事和海事审判领域共二十个方面111项问题进行了明确。总的来说，随着相关安排和司法解释的出台，中国在涉外司法审判领域采取了更加开放、合作的态度。比如，香港仲裁案件的当事人可以在内地法院申请财产保全；取消了大部分境外证据的公证认证要求；对境外法院判决的承认和执行采取了更宽松的审查标准；在涉外领域的审判尺度也趋于务实和统一。这些措施有助于解决跨境海事、商事纠纷。
总体来讲，中国航运业与全球贸易和经济环境息息相关，在此背景下，我们相信2023年将会是机遇和挑战并存的一年。从商业角度，企业需要密切把握政策变化，抓住机遇并规避风险。相应地，在这一行业执业的律师也需要与主要市场趋势协同并迅速适应变化。