Transport Workers Blockade Shanghai Port Over Price Hikes

According to a report in the Lianhe Zaobao, hundreds of truck drivers gathered along Shuichan Road, in Baoshan district, a suburb to the north of Shanghai early on Wednesday morning.

According to information that circulated online on Tuesday, the transport workers were attempting to stage a 3-day blockade of the port district in order to protest against rising fuel prices and increased fees.

Hundreds of police and members of China People's Armed Police were also said to be present at the blockade.

Despite the size of the protest, local media did not report on the incident.

Many people working in the logistics industry were unaware of the blockade, some observers said that if the action really was to continue for three days, then it could impact on business.

However, others pointed out that the strike was unlikely to have significant impact on the distribution business as trade was slow in April, but if the protest was to take place during the peak season, which begins next month, then it could have a large impact. 

A person familiar with the situation told the Lianhe Zaobao, that most of the trucking companies in Shanghai are either controlled by people from Shandong or Henan and that these two groups have been engaged in tough competition with each other for many years. This competition has driven down profit margins in the sector and the companies are attempting to use these protests to apply pressure on the government.

However, people sympathetic to the cause of the drivers have made claims online that local law enforcement officials often bully or discriminate against drivers from other provinces.

The group from Henan are said to be behind the actions.

It seems that some clients had been informed about the impending strike, but that they'd also been assured that deliveries would not be completely cut off.

It appears that, the group from Henan, concerned that their industrial action could help to drive business into the hands of their Shandong competitors, have chosen to simply restrict rather than completely halt deliveries.

A new 80 yuan fee on each truck introduced in early April is said to have been the last straw for the transportation companies.

The decision closely followed the announcement of the latest round of fuel price hikes.

Drivers on strike believe that the increase in fuel prices will make it impossible for them to make money, various additional official charges and tolls only make it even harder for these drivers to get by.

Many drivers from other provinces only earn meager salaries and rely mostly on commission calcualted according to the amount of goods delivered. Internet users say that despite overtime, many drivers who support a family in Shanghai only earn 3,000 yuan per month.

Other internet users have laid the blame for the strike at the feet of China's two dominant and highly profitable domestic oil companies Sinopec and PetroChina.

There are some in the industry who are worried that the actions may lead to an increase in transportation prices, but some analysts believe this is unlikely as the government is unlikely to give in industry demnands for fuel subsidies and the issue is unlikely to be properly resolved.

That said, it is possible that the government could arrange to reduce the burden of highway tolls or other offical fees on the drivers and transportation companies.
 
The Shanghai government made no official mention of the protests on Wednesday.

This article was edited by Ruoji Tang and Paul Pennay

Links and Sources
Guardian: Chinese truck drivers protest against rising fuel prices
Lianhe Zaobao: 抗议油价飞涨 上海数千货运司机大罢工
Shanghaiist: Massive strike by truck drivers at Shanghai ports yesterday, mainstream media silent again (image)