International cargo relay shipments between two Chinese ports have historically been considered cabotage and therefore strictly prohibited for foreign carriers.

Some 725 tons of vegetables began the last leg of their waterborne journey from Shanghai's Yangshan port northward to Tianjin on Wednesday, becoming the first Chinese coastal relay of international cargo by a foreign carrier, and proving that China is opening up its cabotage market to foreign carriers, said officials and industry experts.

The opening of China's cabotage market for foreign carriers allows overseas operators to fully utilize their free space and further lower shipping costs, Zhou said.

To materialize the new policy, Shanghai Customs has conducted research into facilitating trade convenience and attracting more foreign enterprises to participate in China's cabotage market.