Freight Forwarding in China8657688

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Latest figures show that China has now overtaken Japan as the second biggest 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 global slowdown, there was some growth in China's freight transport infrastructure in 2009, as it anticipated this improvement in performance and planned for growth in demand for freight services. 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 influence on the freight solutions industry of the export dependent country. Demand for China imports such as toys, furniture and textiles has been dampened by the most serious 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 both have seen 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 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 components, which are then processed into finished 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 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 effect on international freight visitors into China as nicely.

All through 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 business. Domestic demand has usually been noticed in elevated trade in cargo from the south of China to the North.In general, the advantages of domestic freight transport have been experienced much more in the Shanghai, northern ports such as Quingdao and Tianjin and the smaller sized ports, as they deal with a bigger proportion of domestic trade by shipping businesses.

However, spurred on by the influence of the global slowdown on China, Beijing has elevated its concentrate on enhancing the international freight transport infrastructure. The China government has spearheaded a raft of initiatives. This consists of 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 significance for the freight company.

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

Other initiatives associated to the freight solutions industry have also taken shape throughout the period of economic slowdown, placing China in a much better position as the recovery arrives.

One interesting 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 develop and manufacture container tracking devices for international freight. A joint venture, Beijing Intelligent Shipping Technologies (SST),has been set up to create 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 for IBM, will join its partners in developing the world's only genuine finish-to-finish global tracking and monitoring solution for the freight services industry.

As world leader in exports, regardless of the slowdown, China is thus taking a leadership role 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 products will be of great benefit to shipping businesses and indeed each freight company, permitting them to add worth to their service. The smart technology will enable each piece of cargo to be tracked, monitored and managed anyplace in the world.

China freight forwarder