Freight Forwarding in China2150182
Latest figures show that China has now overtaken Japan as the second largest economy in the world 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 international slowdown, there was some growth 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 strategy for a better future for China import.
Over current years, China has skilled a worldwide decline in demand for Chinese imports and this has of course had a huge influence on the freight solutions business of the export dependent nation. Demand for China imports such as toys, furnishings and textiles has been dampened by the most severe financial downturn in decades.
Nowhere has the decline in demand for China imports been felt more keenly that in the box visitors 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 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 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 financial 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 impact on international freight traffic into China as well.
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 company. Domestic demand has generally been seen in elevated 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 impact 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 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 economic rise, as a lack of direct transportation hyperlinks 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 companies previously produced pricey detours via third countries to get cargo from one side to the other. So the new direct shipping hyperlinks will make freight transport much more streamlined and cost effective.
Other initiatives associated to the freight services industry have also taken shape during the period of economic slowdown, putting 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 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 develop smart shipping container devices and other intelligent transport tools to create higher 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 answer for the freight solutions industry.
As globe leader in exports, regardless of the slowdown, China is thus taking a leadership role in provide chain tracking, monitoring and management. It is believed that in the future, secure inter modal freight transport will rely on smart technologies. China's role in facilitating the commercialisation of such products will be of great benefit to shipping companies and indeed each freight company, allowing them to add value to their service. The intelligent technologies will enable every piece of cargo to be tracked, monitored and managed anyplace in the world.