Freight Forwarding in China474787

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

This improvement in the relative 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 solutions. China's response to the global financial downturn has been to seize the initiative and plan for a better future for China import.

More than recent years, China has experienced a worldwide decline in demand for Chinese imports and this has of course had a huge impact on the freight services business of the export dependent country. Demand for China imports such as toys, furniture 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 both 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 each inbound and outbound containers.Inbound cargo includes raw supplies and elements, which are then processed into completed goods for export at factories in the southern Guangdong, China's economic powerhouse. The high level of import of raw supplies for subsequent processing and export means that the freight solutions sector in China has had a double whammy, as declines in manufacturing due to decreased demand for China import has a direct knock on effect on international freight visitors into China as well.

All through this tough period, domestic demand in China has accounted for some increases in domestic container trade, and this has been welcome news for numerous a shipping business. Domestic demand has usually been noticed in elevated trade in cargo from the south of China to the North.In common, the benefits of domestic freight transport have been experienced much more in the Shanghai, northern ports such as Quingdao and Tianjin and the smaller ports, as they deal with a larger proportion of domestic trade by shipping businesses.

However, spurred on by the impact of the global slowdown on China, Beijing has elevated its focus on improving the international freight transport infrastructure. The China government has spearheaded a raft of initiatives. This consists of 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 hyperlinks 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 financial rise, as a lack of direct transportation links 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 produced pricey detours via third countries to get cargo from 1 side to the other. So the new direct shipping links will make freight transport more streamlined and price efficient.

Other initiatives associated to the freight solutions industry have also taken shape during the period of financial slowdown, putting China in a better position as the recovery arrives.

One interesting initiative has been a joint venture in between America's CYBRA Corporation and Key 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 smart shipping container devices and other smart transport tools to produce higher consignment visibility in maritime shipping. CYBRA, which is a developer and distributor of bar code software for IBM, will join its partners in creating the world's only real finish-to-finish global tracking and monitoring answer for the freight services industry.

As world leader in exports, despite the slowdown, China is therefore taking a leadership function in supply chain tracking, monitoring and management. It is believed that in the future, secure inter modal freight transport will rely on intelligent technologies. China's function in facilitating the commercialisation of such goods will be of fantastic benefit to shipping businesses and certainly each freight business, allowing them to add worth to their service. The intelligent technology will allow each piece of cargo to be tracked, monitored and managed anywhere in the globe.

China freight forwarder