China's Ministry of Transport and National Development and Reform Commission (NDRC) has announced a reduction in port charges.

The authorities released the Notice Aug. 4 to Adjust Port Charges and Port Security Charges, which prohibits port operators from imposing fees for services other than pilotage, towage, berthing, oil boom, feeders, special trimming, waste disposal, water, bunker, and power supply.

Pilotage charge units for international services will be increased from 500 net tonnage to 2,000 net tonnage, and pilotage fees (within 10 miles) for ships ranging from 40,001-80,000 net tonnage and ships over 80,000 net tonnage will be reduced to CNY0.45(US$0.07)/net tonnage and CNY0.425/net tonnage, respectively.

Extra charges levied for night time and national holiday pilotage and towage services will see a further reduction of 45% discount, while port security charges for 20ft and 40ft containers will be reduced to CNY10 and CNY15 each box, respectively, the notice added.

The new measure is expected to cut costs incurred by shipping companies, according to Ship.sh analyst Wang Hai.

Although the move may reduce port operators' revenue and profit in the initial stages, reduced charges should spur growth in shipping and gradually bring in more revenue for ports, he said.