Freight Forwarding in China8048178

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Latest figures show that China has now overtaken Japan as the second largest economy in the world after 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 global 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 global economic downturn has been to seize the initiative and strategy for a better future for China import.

More than recent years, China has skilled a worldwide decline in demand for Chinese imports and this has of course had a massive impact on the freight solutions industry of the export dependent country. Demand for China imports such as toys, furnishings and textiles has been dampened by the most severe economic downturn in decades.

Nowhere has the decline in demand for China imports been felt much more keenly that in the box traffic trade. China's two biggest container ports are Shanghai and Shenzhen. The throughput figures at each have seen year on year falls and the throughput figures mask an even worse 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 result of its personal domestic slowdown, the volume declines have been evident in both inbound and outbound containers.Inbound cargo consists of raw materials and elements, which are then processed into finished goods for export at factories in the southern Guangdong, China's financial powerhouse. The high level of import of raw supplies for subsequent processing and export indicates 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 impact on international freight visitors into China as nicely.

Throughout this tough period, domestic demand in China has accounted for some increases in domestic container trade, and this has been welcome news for many a shipping company. Domestic demand has generally been noticed in increased trade in cargo from the south of China to the North.In general, the advantages 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 bigger proportion of domestic trade by shipping businesses.

Nevertheless, spurred on by the influence of the global slowdown on China, Beijing has elevated its concentrate on improving the international freight transport infrastructure. The China government has spearheaded a raft of initiatives. This includes both physical upgrades and revisions to the systems that affect international trade and international freight services.

Other initiatives have also helped pave the way for the next upturn, such as new direct shipping links 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 hyperlinks with China undermined its position and importance for the freight company.

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

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

1 fascinating initiative has been a joint venture in 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 produce greater consignment visibility in maritime shipping. CYBRA, which is a developer and distributor of bar code software program for IBM, will join its partners in creating the world's only genuine finish-to-end international tracking and monitoring answer for the freight solutions industry.

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

China freight forwarder