Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Shanghai port traffic returns as strike dwindles

Published 04/25/2011, 01:21 AM
Updated 04/25/2011, 01:24 AM

By Michael Martina

SHANGHAI, April 25 (Reuters) - Trucks laden with cargo containers on Monday appeared to operate as usual on roads leading to ports in China's coastal commercial hub, Shanghai, where officials sought to defuse lingering anger among truck drivers who went on strike last week over rising costs.

The drivers' strike disrupted shipments at China's busiest port and brought shivers of unrest about rising costs and fees to Shanghai, which has sought to remake itself as a symbol of outward-looking prosperity.

Over the weekend, the Shanghai government cut fees in a bid to defuse anger over high fuel prices among the independent contractors who haul goods to and from the city's string of ports. Many drivers working as company employees on fixed wages did not join the protest.

The strike, which began on Wednesday, was a brief but telling symptom of the pressures facing the Chinese government over inflation, which in March hit 5.4 percent from a year earlier, magnifying the ruling Communist Party's jitters about protests erupting over prices, taxes and fees.

By Monday morning, it appeared that the Shanghai government's push to douse the discontent was working. Roads leading to the city's docks were busy with traffic.

But several drivers said that despite their success in cutting fees, making a decent living from the fiercely competitive trucking sector would remain tough.

"The government's response has been fairly reasonable, but this is largely a problem with the market. With so many drivers out there competition is tough, and it won't be so easy to fix. The strike is just a way to communicate to the government," said Li Wenbing, a 31-year-old truck driver from Henan province in central China, home of many of the aggrieved drivers.

"The government's new regulation won't have much impact on my wages. At least after four days parked here I am well rested."

Large numbers of police officers continued to line streets around the Baoshan port area, and officials had set up a half dozen outdoor stands where drivers could register any complaints.

"The situation has only been resolved to a degree. Frankly, the new rules aren't that much help," said a 26-year-old independent driver from Henan who would not give his name.

The drivers have complained about high operating costs, citing fuel-price increases, low salaries, and irregular fees and fines imposed by authorities. Some said logistics companies were colluding to charge them higher fees.

China said in early April it would raise retail gasoline and diesel prices by 5-5.5 percent to record highs.[ID:nSGE736009]

The Party leadership is especially jumpy about threats to its control following online calls for "Jasmine Revolution" protests inspired by anti-authoritarian uprisings across the Arab world, and has detained dozens of dissidents.

But the Chinese government has also said it wants to channel more wealth to workers and farmers, and narrow an income gap that has fed public ire.

When workers at Japanese-owned vehicle parts suppliers struck in southern China last year, officials encouraged the companies to offer wage rises and other gains.

(Writing by Chris Buckley in BEIJING; Editing by Jacqueline Wong)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.