Strict regulations affect S China’s mixed aromatics transportation

02 August 2012 11:03  [Source: ICIS news]

SINGAPORE (ICIS)--Cost of transporting mixed aromatics in southern China’s Guangdong province through water is expected to rise as a result of stricter rules by the provincial authorities, market sources said on Thursday.

The Maritime Safety Administration of Guangdong province on 5 July made it mandatory for ships carrying mixed aromatics to pass more stringent pollution and hazard assessments.

A south China-based trader said he had originally planned to pick up mixed aromatics in Guangdong by barge, but has now changed his mind and decided to use more costly truck delivery in view of the new surveillance rules.

No ships containing mixed aromatics have sailed in or out of the oil tank of Guangzhou Nansha Titan Petrochemical Development Co in Guangzhou in the past two weeks, according to a market player in south China.

The new regulation is expected to have limited impact on south China’s imports of mixed aromatics in the short term because of sparse arrivals, market players said.

But in the long run, stricter rules may force cargoes to be taken to ports in the neighbouring regions, or they take longer time to clear Guangdong ports. Both options will cost more.

The Maritime Safety Administration of Tianjin and Huizhou have promulgated similar regulations in July 2010 and March 2011, which had had impact on water transportation of domestic and imported mixed aromatics.

By: Anita Yang
+65 6780 4327

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