Arrive Pudong Airport Leave Baoshan, Shanghai International Port Cruise Terminal

Hi, We are Australian Citizens arriving at Pudong Airport, staying in Shanghai for 3 nights and then boarding a cruise ship that finishes in Japan. Can we use the 144 free hour transit ?

Are there any problems getting this free transit - we are worried that we won't be allowed entry if we don't have a visa before arriving.

Do all hotels register you with the police on arrival?
Thanks for your help.