- CMA CGM is ending scrap shipments to China as country prepares to widen its prohibition on imports.
- Insurance providers are analyzing the Chinese policy and its ramifications.
- The new rules will apply to all brands within the CMA CGM Group.
- U.S. transpacific trade division will continue taking shipments through the end of September.
- China signals it will be banning imports of more recovered materials next year.
- Chinese officials have noted they are phasing out imports of solid waste.
- APM-Maersk, MSC, and Hapag-Lloyd have all released similar policies.
According to an article published in Resource Recycling and authored by Colin Staub, another major container ship operator says it’s ending scrap shipments to China as that country prepares to widen its prohibition on imports of recovered material.
Implications of Chinese policies and ramification on shipping
Meanwhile, insurance providers recently analyzed the Chinese policy and its ramifications for shipping lines.
CMA CGM, which is the fourth-largest shipping firm in the world by container weight, recently announced it “will reject new bookings of all types of solid waste cargoes bound to China” in order to comply with upcoming Chinese regulatory changes.
The shipping company said its new rules will apply to all brands within the CMA CGM Group. The announcement described the shift as a “geographical roadmap, aiming at stopping the acceptance of shipments of solid waste cargo to the People’s Republic of China,” and said it would take immediate effect in most jurisdictions.
Shipments to continue
However, the company’s U.S. transpacific trade division will continue taking shipments through the end of September, according to the advisory.
The announcement does not specify whether the policy will apply to Hong Kong.
The development comes as China signals it will be banning imports of more recovered materials next year, following the country’s heightened focus on imported recyclables via its National Sword policy.
Chinese officials have noted they are phasing out imports of “solid waste,” a term that has been generally understood to include most recycled materials. Some recycled metals, such as copper and brass, have at times been classified as “recycled raw materials” and could continue to move to China, however.
Shipping lines release new policies
CMA CGM’s announcement follows APM-Maersk, Mediterranean Shipping Company (MSC), and Hapag-Lloyd, the first-, second- and fifth-largest shipping lines, respectively, all of which released similar policies in recent months. All three said their policies would take effect for shipments slated to arrive in China after Sept. 1.
However, Hapag-Lloyd recently extended the implementation for its policy, telling customers on Aug. 17 that it now applies to shipments entering China after Jan. 1, 2021.
Along with the implementation extension, Hapag-Lloyd noted that Chinese solid waste officials “will publish a catalog of solid waste products which is currently under preparation within [the Ministry of Ecology and Environment].”
Insurance group highlights Chinese import change
Meanwhile, the International Group of P&I (Protection and Indemnity) Clubs, an industry association representing shipping insurance providers, issued an August 2020 advisory document laying out the upcoming Chinese legal changes. The document was published by numerous shipping insurance providers around the globe.
Among other details, the IGP&I document lays out lists of commodities that will reportedly be banned from import into China next year. Beyond all scrap plastics and mixed paper, which have been banned since 2018, the advisory states that OCC and other recovered fiber will be added to the list of banned materials.
The document contains a detailed analysis of China’s solid waste regulatory changes, and it lays out one specific component that has likely influenced the shipping companies’ decisions to act quickly in advance of the legal change.
Chinese policy imposes severe liability on carriers
The updated Chinese policy “imposes joint and several liabilities on both the carrier and importer for the return and disposal of the solid waste where the solid waste is prohibited and/or proper license has not been obtained, and significantly increases the fines that can be imposed for violations,” according to the IGP&I analysis.
Additionally, the document explains that China “intends to reduce the import of solid wastes during the latter half of 2020,” and that the country will essentially end its import licensing process for scrap materials beginning in January.
Violation leads to custom fines
CMA CGM told customers that “any violation of the legislation will lead to customs fines” and customs orders that cargo be returned to its point of origin.
Despite the upcoming ban, the Chinese government continues to approve permits for the more recovered paper to enter the country.
Most recently, the country on Aug. 18 approved 216,000 short tons of recovered fiber for import.
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Source: Resource-recycling
