Broadening to support and enhance client services, International Registries, Inc. and its affiliates (IRI), which provide administrative and technical support to the Republic of the Marshall Islands (RMI) Registry, chose to expand in Asia in 2004 by opening an office in Shanghai. IRI’s Head of Asia, Annie Ng, recalls Shanghai in the early 2000s as a hub of international finance activity, with global clients using financial institutions from Shanghai to support fleet expansion and development.
“Shanghai was, and still is, a center of financing for international trade. In 2004 the Chinese economy was very robust, especially in sectors that were starting to privatize. We saw an office opening in Shanghai as an opportunity to be closer to our clients, and to serve them with local cultural understanding and global perspective,” remembered Annie.
The Shanghai office opened to support corporate formations from global clients using Shanghai based financial institutions. Captain Ming Chen, Country Head-China, who joined IRI in 2006 to support the enhancement of regional maritime services, recalls the burgeoning private shipping market at the time.
“In the early 2000s, China’s private shipping industry was in the early stages of growth and development, and the situation was rapidly changing to meet the demands of the global economy. Over the last two decades, Chinese tonnage has grown exponentially, as have related maritime technology and support services throughout the country,” said Captain Chen.
The rapidly increasing scale of the Chinese fleet fueled the expansion of shipping companies, ship management companies, and financial institutions in Shanghai and across China. The Shanghai office, which now supports a staff of 14, collaborates with other regional offices in Dalian and Qingdao to support efficient inspection and certification services throughout the country for the significant number of RMI-flagged vessels that call at China ports.
“When the office opened, the industry was rapidly expanding to match global demand for trade in Asia,” remembered Annie. “Captain Chen and I were on the road constantly visiting clients and stakeholders. Being in Shanghai allowed us to meet, respond, and collaborate with clients regularly and gather first-hand market information. Our presence assured them that the RMI was an international player committed to supporting the Chinese market.”
By 2018 the RMI Registry was the fastest growing flag in China. Today more than 900 Chinese owned vessels are flagged in the RMI. As of 2023, China was the largest ship owning country by tonnage, with mergers and acquisitions creating some of the largest large-scale state-owned shipping enterprises as well as significant shipbuilding capacity.
“There has been a real nexus of capability, capacity, and services in Shanghai and across China,” said Captain Chen. “The Chinese ship building industry is increasing capacity for liquefied natural gas (LNG), ultra-large container vessels, and luxury cruise ships. At the same time Shanghai continues to be a major contributor in ship financing and ship management.”
With the globalization of China’s shipping industry, the Shanghai office plays an important role as a link between China and the rest of the world in both shipping and non-shipping sectors. Because of significant global investment in China, the Shanghai office works closely with both corporate and maritime clients. Close working relationships with other IRI offices across the continents offer clients access to expertise in China and beyond. As a nexus of shipping, the Shanghai office continues to adapt to market trends, often participating in international discussions with global shipowners and operators to support the transition to green technology.
“Chinese shipowners are highly interested in regulations surrounding the sustainability of global shipping and many have begun actively optimizing their fleet structure,” noted Captain Chen, who helps facilitate information sharing between the RMI Maritime Administrator’s delegation at the International Maritime Organization and Chinese shipowners. “We see numerous shipowners building and delivering dual-fuel ships, as well as increased maturity of manufacturing and capability in the area of electric and battery power.”
As a center for international trade and the global shipping industry, Captain Chen and Annie see the Shanghai office as a critical support office for the future.
“Many global stakeholders are located in Shanghai, and coupled with the expansion of ship building capabilities, support services, insurance, and ship management companies, there is no place like it in the world,” noted Annie. “Shanghai will continue to play a major role in client services and support for owners and operators of RMI-flagged vessels calling in China and RMI registered business entities doing business in China.”
