SHANGHAI =
SHIPPING=20
EXCHANGE
REGULATIONS ON FUTURE SPACE =
EXCHANGES
Chapter =A2=F1 =
General=20
Provisions
=20
Article =
1 These =
Regulations are=20
formulated in accordance with the Regulations for Transaction =
Administration of=20
Shanghai Shipping Exchange and the Articles of Association of Shanghai =
Shipping=20
Exchange (hereinafter referred to as the Exchange) so as to ensure =
orderly=20
transaction of the future space exchanges within the Exchange and to =
protect the=20
legitimate rights and interests of the parties involved in the=20
transaction.
=20
Article 2 Transaction=20
Activities with respect to the future space exchanges shall be conducted =
on the=20
principle of Transparency , Fairness, Equity and =
Faithfulness.
=20
Article =
3 The subject =
matter of=20
the future space exchanges in the Exchange shall be the transaction with =
respect=20
to international sea-borne container liner transport.
Article 4 The future space exchange =
shall be=20
conducted mainly on the Internet, and supplemented at the on-the-spot =
service=20
counters.
Article 5 These Regulations shall be =
applicable to=20
the future space exchanges organized by the Exchange.
=20
Chapter =
=A2=F2=20
Qualifications for =
Future=20
Space Exchanges
=20
Article =
6 =
Participants in the=20
future space exchanges shall be legally-founded international shipping=20
companies, or direct cargo-owners and the international freight =
forwarders as=20
entrusted by the cargo-owners, or non-vessel operating carriers with =
their bills=20
of lading filed with the Ministry of Communications, and shall be the =
members to=20
the Exchange as well.
=20
Article =
7 Where =
enterprises=20
without the membership to the Exchange but with their qualification in=20
compliance with the conditions set forth in Article 6 hereof intends to=20
participate in the future space exchanges, such enterprises may submit =
to the=20
Exchange an application for interim membership, and may conduct =
transactions as=20
the interim member, or entrust the Exchange for the future space =
exchange=20
transactions in the Exchange.
Article 8 Participants in the =
future space=20
exchanges shall provide deposit or bank guarantee in such a proportion =
as=20
corresponding to the transaction so as to confirm the space exchange. =
The=20
deposit or bank guarantee shall be made at the sum of 10 per cent of the =
total=20
value of transactions.
Article 9 Participants in the =
future space=20
exchanges shall conduct transactions only after conclusion with the =
Exchange of=20
the Future Space Exchange Contract.
Chapter =A2=F3 =
Method, Place=20
and Time for Future Space Exchanges
Article 10 The =
future space=20
exchanges shall be conducted on the Website (http://www.chineseshipping.co=
m.cn/),=20
and the relevant trading documents shall be filled up after completion =
of the=20
transactions.
Article 11 The Website offers =
24-hour service,=20
holidays included, and the day on which the transaction is completed on =
the=20
website shall be deemed as the first working day for completion of the =
trading=20
document with the office hours running from 9:00 to 11:00 am. and 1:00 =
to 4:00=20
pm.
Article 12 The Exchange may, in case =
of=20
special circumstances affecting normal transactions, change the time for =
future=20
space exchanges or suspend transactions after making online announcement =
on the=20
website.
Chapter =
=A2=F4 =
Representative,=20
Supervisor and Operator for the Future Space =
Exchanges
Article =
13 =
Participants in=20
future space exchanges shall conduct online transactions with their=20
identification name and password given by the Exchange after provision =
of the=20
specified deposit.
Article 14 The=20
qualification of representatives for transaction shall be identified by =
the=20
participants in the future space exchanges and the representatives shall =
complete trading procedures on behalf of the participants only with =
their=20
qualification filed with the Exchange.
Article =
15 =
Representatives=20
shall conduct transactions under the orders and instructions of the =
participants=20
in the future space exchanges and the participants shall be responsible =
for the=20
conduct of their representatives in the Exchange.
Article 16 The=20
working staff of the Exchange for the future space exchanges is made of=20
supervisors and operators.
Article =
17 The =
responsibility of=20
the supervisors is to maintain the transaction order, exercise =
supervision over=20
transaction activities, organize transaction negotiations and to render=20
consulting services.
Article 18 =
The =
responsibility of=20
the operators is to deal with online transactions for the entrusting =
parties who=20
are unable to conduct such transactions directly through the website, =
and in=20
case of contingency, such as failure of telecommunications, =
power-supply,=20
computer software and hardware, or network connections, to help the =
trading=20
parties to complete the transactions and trading procedures. However, no =
operator shall be allowed to interfere in the exchanges.
Chapter =A2=F5 =
Freight Rates=20
under Transaction
Article =
19 =
Conditional upon=20
abidance by both the relevant national and industrial rules and =
regulations, the=20
freight rates on the website shall be determined exclusively by the =
participants=20
in the future space exchanges, nevertheless the freight rate on the =
website=20
shall include all the sea freight paid by the shipper to the shipping =
company.=20
Article =
20 The =
Exchange may,=20
in accordance with the particular circumstance on the shipping market, =
issue the=20
guiding freight rates for the major shipping lines, and under abnormal=20
conditions, provide for the freight rate fluctuation range, or, when =
necessary,=20
announce suspension of the future space exchanges.
Chapter =
=A2=F6 =
Conditions and=20
Procedures for Future Space Exchanges
Article =
21 For =
the purpose=20
of the future space exchanges, shipping companies who sell the space =
shall be=20
defined as the seller and the non-vessel operating carriers, shippers or =
freight=20
forwarding agents who buy the space be defined as the buyer.
Article =
22 Both =
the seller=20
and buyer may sell and buy the space on the Internet on condition that =
the space=20
for future exchange shall be lawful and practicable, otherwise, the =
party=20
bidding the space shall be deemed as the breaching party.
Article =
23 The =
buyer shall=20
unconditionally make full use of the space as bought, otherwise, the =
buyer shall=20
be deemed as the breaching party.
Article =
24 The =
flow diagram=20
for the future space exchanges is provided in the Annex as =
attached.
Article =
25 Both =
the trading=20
parties shall strictly abide by the transaction once made between them. =
The=20
Exchange has the right to restrict or cancel the qualification of any =
party for=20
the future space exchange in accordance with condition of the party in=20
fulfillment of the contract.
Article =
26 Both =
the trading=20
parties shall conduct the transactions strictly in accordance with the =
specific=20
transaction procedures. Either party may, in case of disagreement with =
the=20
decision made by the Exchange for breach of the contract for which no =
agreement=20
could be reached through negotiation or coordination, submit the case =
for=20
arbitration to China Maritime Arbitration Commission, under which case, =
the=20
Chinese law shall be applicable.
Chapter =
=A2=F7 =
Supplementary=20
Provisions
Article 27 =
The =
specific=20
transaction procedures for the future space exchange shall be otherwise =
made by=20
the Exchange.
Article 28 =
The =
interpretation=20
of these Regulations shall rest upon the Exchange.