Freight Forwarding in China1943583
Latest figures show that China has now overtaken Japan as the second biggest economy in the globe 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 global 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 overall performance and planned for development 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.
Over recent years, China has experienced a worldwide decline in demand for Chinese imports and this has of course had a massive influence on the freight services business 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 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 consists of raw supplies and elements, 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 effect on international freight traffic 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 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 ports, as they handle a bigger proportion of domestic trade by shipping companies.
However, spurred on by the influence of the international 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 consists of each 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 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 links 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 companies previously produced costly detours via third nations to get cargo from 1 side to the other. So the new direct shipping links will make freight transport more streamlined and cost effective.
Other initiatives related to the freight solutions industry have also taken shape throughout the period of financial slowdown, placing China in a much better position as the recovery arrives.
1 fascinating 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 Intelligent Shipping Technologies (SST),has been set up to develop intelligent shipping container devices and other intelligent transport tools to create 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-finish international tracking and monitoring answer for the freight solutions 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 smart technologies. China's function in facilitating the commercialisation of such products will be of fantastic benefit to shipping businesses and indeed every freight company, allowing them to add value to their service. The intelligent technology will allow each piece of cargo to be tracked, monitored and managed anywhere in the world.