At this point, there has to be a better solution. If people exploit this then ban them, it should be obvious. If you can't tell over a week even with like an automated checker, I dunno what to say. They give you fuel and such but who wants to use fuel when you can't even trade items?? The idea of fuel I don't think was thought of when they clamped down on 'tagged trading.' There needs to be a smarter way.
Edit: what about a TAG inventory? You should be able to carry wt up to the wt of both of your characters anyway, imo, they are going together. The whole riding while encumbered IS A BUG. Then make a TAG inventory that allows, now that imperials are lighter, trading of 50 or so crates at a time, or other stuff like the kinda items you get off gathering... hmm!
Make it impossible to swap to the tagged character if the other one has trade items of any nature, regardless which mechanic you try (tag button, disconnect or character selection screens). Add an error of "Tagged character carries trade items" and call it a day. I genuinely don't care that Kuit (Padix too?) Island pirates drop trade items and that someone might have a hard time because of that.