The strikes this week by hundreds of drivers at shipping sites in Shanghai, China's largest port and the world's busiest container port, underline official concerns over the potential for spiralling inflation to spark unrest.

Police have been dispatched to several port sites in the city since Wednesday, when drivers first gathered to call for higher freight rates to offset hikes in diesel prices.

Protesters assembled again around the China International Marine Containers (CIMC) terminal in Shanghai's northern Baoshan district on Friday morning, a participant told AFP by phone.

"It's chaotic here now. Policemen are coming with police cars ... they tried to disperse the people," the man said on condition of anonymity at mid-morning.

An AFP reporter who arrived at the Baoshan CIMC terminal around mid-day saw a heavy police presence, but no remaining strike activity.

It was not immediately clear whether the actions were affecting cargo traffic out of Shanghai, although some North American logistics companies warned of possible delays earlier this week.

Shanghai port authorities and the city's government have not responded to AFP requests for comment on the matter.

The state-controlled Chinese-language media has refused to report on the demonstrations, apparently fearing they could spread to other sectors.

But the English-language Global Times -- published for foreign readers -- on Friday quoted Shanghai police denying claims circulating on the Internet that three drivers had been beaten to death by police in the unrest.

"No casualties were reported, nor were there any conflicts between police and truck drivers," the paper quoted Zeng Ni, spokeswoman for the Shanghai police as saying.

Shanghai media said Friday that car-use fees paid by taxi drivers to their employers would be reduced starting May 1, in an apparent bid to keep the protests from spreading.

Cabbies will pay their companies 8,200 yuan ($1,262) each month, down from 8,500 yuan, the Shanghai Daily reported.

Inflation has a history of sparking unrest in China and the government is on edge over spiralling prices, particularly after inflation became a factor in the popular uprisings that have rocked the Arab world.

The Arab unrest also prompted online appeals for similar uprisings in China, but no major protests have been reported.

The consumer price index rose 5.4 percent year-on-year in March -- the fastest pace since July 2008 and well above the government's 2011 target of four percent.

The truck drivers, mostly private operators, said their incomes had been squeezed by four increases in the government-set price of diesel since October, the Century Weekly magazine said in a report on its website that was quickly removed.

Most had previously earned 4,000 yuan ($615) a month before the diesel price rises, the report said.

In addition to increased fuel costs, drivers were protesting over what they said were unreasonably high handling fees charged by the port, according to a notice issued by ROE Logistics Inc, a Montreal-based customs broker and freight forwarder.

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