China has forbidden shipping firms from offering free freight and secret cash rebates on routes between China and Japan, a tactic to try to grab business, saying the practice was upsetting the market.

A Ministry of Communications probe into the unusual strategy, aimed at taking business from rivals and somewhat offset by the imposition of special surcharges, might result in disqualification of violators, according to a ministry statement.

Aggressive expansion plans, especially by Chinese shipping firms, is triggering concern about oversupply in the international container shipping market, and dragging down global freight rates.

Irregularities and unregulated price competition had severely affected order in the shipping market and sparked widespread concern, the ministry said.

The ministry has decided to help clean up and regularize the international shipping market, with a focus on the China-Japan route, and solemnly investigate and punish those involved in malpractice.

Operators cannot offer services at lower than normal or reasonable prices, and must not secretly offer rebates to shippers.

Offering "zero freight rates" and "negative freight rates" to fight for cargoes is banned.

The ministry pledged to restrict the frequency of services on routes, or even bar violators from providing international services.

Source:佚名