Freight Forwarding in China1524463

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Newest figures show that China has now overtaken Japan as the second largest economy in the globe after Japan.

This improvement in the relative overall performance of China is encouraging news to the freight forwarding sector in China, that has been battling with the international downturn in trade in recent years. However, even with the international slowdown, there was some development in China's freight transport infrastructure in 2009, as it anticipated this improvement in overall performance and planned for growth in demand for freight services. China's response to the international economic downturn has been to seize the initiative and plan for a much better future for China import.

Over recent years, China has experienced a worldwide decline in demand for Chinese imports and this has of course had a huge influence on the freight solutions business of the export dependent nation. Demand for China imports such as toys, furnishings and textiles has been dampened by the most serious financial downturn in decades.

Nowhere has the decline in demand for China imports been felt much more keenly that in the box visitors trade. China's two largest container ports are Shanghai and Shenzhen. The throughput figures at each have noticed year on year falls and the throughput figures mask an even worse overall performance in terms of laden containers. The Shenzhen port figures for freight forwarding are a direct reflection of manufacturing in the Pearl River Delta.

As imports to China have also declined as a outcome of its personal domestic slowdown, the volume declines have been evident in both inbound and outbound containers.Inbound cargo consists of raw materials and components, which are then processed into finished goods for export at factories in the southern Guangdong, China's economic powerhouse. The higher level of import of raw supplies for subsequent processing and export means that the freight services sector in China has had a double whammy, as declines in manufacturing due to decreased demand for China import has a direct knock on impact on international freight traffic into China as well.

Throughout this difficult period, domestic demand in China has accounted for some increases in domestic container trade, and this has been welcome news for numerous a shipping company. Domestic demand has usually been seen in elevated trade in cargo from the south of China to the North.In general, the benefits of domestic freight transport have been experienced more in the Shanghai, northern ports such as Quingdao and Tianjin and the smaller ports, as they handle a larger proportion of domestic trade by shipping businesses.

Nevertheless, spurred on by the impact of the global slowdown on China, Beijing has increased its focus on improving the international freight transport infrastructure. The China government has spearheaded a raft of initiatives. This includes each physical upgrades and revisions to the systems that affect international trade and international freight solutions.

Other initiatives have also helped pave the way for the next upturn, such as new direct shipping links in between China and Taiwan. Kaohsiung in Taiwan, which was the world's third busiest container port in the 1990s,saw its ranking slip with China's economic rise, as a lack of direct transportation hyperlinks with China undermined its position and significance for the freight business.

A deal between the two former political rivals has renewed Chinese interest in the port, driving investment plans. Shipping businesses previously made pricey detours through third countries to get cargo from 1 side to the other. So the new direct shipping hyperlinks will make freight transport much more streamlined and cost efficient.

Other initiatives related to the freight services business have also taken shape throughout the period of financial slowdown, putting China in a better position as the recovery arrives.

1 interesting initiative has been a joint venture between America's CYBRA Corporation and Important West Technologies which have joined forces with the Chinese Transport Ministry's Water borne Transportation Institute (WTI) to create and manufacture container tracking devices for international freight. A joint venture, Beijing Smart Shipping Technologies (SST),has been set up to develop intelligent shipping container devices and other intelligent transport tools to create higher consignment visibility in maritime shipping. CYBRA, which is a developer and distributor of bar code software for IBM, will join its partners in developing the world's only genuine finish-to-end global tracking and monitoring answer for the freight services industry.

As world leader in exports, despite the slowdown, China is thus taking a leadership function in provide chain tracking, monitoring and management. It is believed that in the future, safe inter modal freight transport will depend on smart technologies. China's role in facilitating the commercialisation of such goods will be of fantastic benefit to shipping businesses and certainly each freight business, permitting them to add value to their service. The intelligent technologies will enable every piece of cargo to be tracked, monitored and managed anyplace in the world.

China freight forwarder