Freight Forwarding in China9553687
Latest figures show that China has now overtaken Japan as the second biggest 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 current 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 development in demand for freight solutions. China's response to the global economic downturn has been to seize the initiative and plan 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 huge influence 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 each 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 outcome of its personal domestic slowdown, the volume declines have been evident in both inbound and outbound containers.Inbound cargo includes raw supplies and components, which are then processed into completed goods for export at factories in the southern Guangdong, China's financial powerhouse. The higher level of import of raw materials for subsequent processing and export indicates 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 visitors into China as nicely.
Throughout this difficult 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 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 companies.
However, spurred on by the influence of the international slowdown on China, Beijing has increased its concentrate on enhancing 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 impact international trade and international freight solutions.
Other initiatives have also helped pave the way for the subsequent upturn, such as new direct shipping hyperlinks 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 financial rise, as a lack of direct transportation hyperlinks with China undermined its position and significance for the freight business.
A deal in between the two former political rivals has renewed Chinese interest in the port, driving investment plans. Shipping businesses previously produced pricey detours through third countries to get cargo from 1 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 industry have also taken shape throughout the period of economic slowdown, putting China in a better position as the recovery arrives.
1 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 develop and manufacture container tracking devices for international freight. A joint venture, Beijing Intelligent Shipping Technologies (SST),has been set up to create smart 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 developing the world's only real finish-to-end global tracking and monitoring solution for the freight services business.
As world leader in exports, regardless of the slowdown, China is thus taking a leadership function in supply chain tracking, monitoring and management. It is believed that in the future, safe inter modal freight transport will depend on intelligent technologies. China's role in facilitating the commercialisation of such goods will be of fantastic benefit to shipping businesses and certainly every freight company, permitting them to add worth to their service. The intelligent technologies will allow every piece of cargo to be tracked, monitored and managed anyplace in the globe.