Archive for the 'freight forwarding' Category

YRC Worldwide subsidiaries Roadway and YRC Logistics Global have rolled out an expedited ocean service from China to the United States.

YRC said this adds new supply chain services at origin and destination for global shippers, as well as expand its logistics offerings to more global markets.

A spokesperson said, ‘Global supply chains are more dynamic than ever. This offering provides a unique service for those customers who seek a faster service at a more reasonable price. Our customers are sourcing globally, and we are providing solutions to that end.’

The new expedited ocean service from China to the U.S. will provide transit time improvement for standard LCL (less-than-container-load) ocean service; significant cost reduction over air; many Chinese origins with multiple sailings per week that will provide faster speed to market; guaranteed delivery or your money back if it fails to deliver by scheduled delivery date; and faster inventory turns.

The service will originate from seven ports in China — Dalian, Qingdao, Shanghai, Ningbo, Xiamen, Guangzhou, and Shenzhen — and the Port of Long Beach in the United States.

This service is expected to be at least six days faster than standard ocean transit and will offer priority unloading of containers at the Port of Long Beach.
Source: Logistics Management

Sinotrans, China’s largest logistics company, reported a 30% increase in net profit to US$114.57 million in 2007, due to strong growth in freight forwarding, storage and terminal services.

Turnover was up 20.7% to $5.54 billion.

Earnings from freight forwarding business increased by 23%, port storage by 24% and terminal services by 16%.

Freight forwarding accounted for 41% of its earning, terminal services 21% and port storage business 21%. Express services, accounting for 25% of its earnings, saw a 22% drop.

The US economic slowdown hurt marine transport and express services at Sinotrans. The company has already adjusted some of its maritime routes and services and hopes to improve their bottom line. In the next three years, Sinotrans aims to invest $1.42 billion to build up its logistics and transport services empire.

The company wants to acquire warehouses, depots and terminals along the Yangtze River from its parent company. It said it would acquire assets in Shanghai, Zhejiang, Jiangsu, Tianjin and overseas in the next three years after taking over $156.75 million worth of assets — ranging from warehouses to stockyards and terminals — from Sinotrans Group in December last year.

The company will expand its two weak (this is perhaps the wrong word, ‘less strong’ might do it) divisions, marine transport and air freight, through mergers and acquisitions.
Source: CargoNews Asia

Barely four months after acquiring one Chinese logistics company the Indian companuu Direct Logistics India, which is based in Mumbai, is looking to make another purchase. Late last year it bought China-based Shenzhen Dida Logistics for an undisclosed amount. This was the first ever acquisition by an Indian company in the Chinese freight forwarding industry.

Direct Logistics’ financial adviser, Ambit Corporate Finance, is now in talks with a few international and domestic private equity firms arranging funds for the company’s new acquisition.

Sunil Devrani, chief executive and managing director of Direct Logistics, said, ‘We are looking at buying out a supply chain management company in China which will help us in transforming to a complete logistics solution company instead of just freight forwarding firm.’

He intelligently declined to disclose the target company and the prospective investors in Direct Logistics. Sunil Devrani said the fund-raising and acquisition would be concluded in the next three months.
Source: LiveMint.com

China’s seas contributed RMB2.49 trillion ($347 billion), or 10%, of the country’s gross domestic product (GDP) last year.

A report, issued by the State Oceanic Administration (SOA), said the value of marine industries, including fishing, transport, oil and gas, tourism and shipbuilding, grew 15% year on year, more than the economy as a whole.

The marine industry employed 31.5 million people last year, 1.9 million more than in 2006.

SOA spokesman Li Haiqing said the main pillars of the rapid growth were the traditional industries of transport, tourism and fishing, which accounted for more than 80% of total output value.

Emerging industries also grew quickly. For example, the oceanic biological pharmaceutical industry, which generated more than RMB4 billion last year, was up more than 37%.

With the launch in November of the first offshore wind power station, funded and run by the China National Offshore Oil Corporation, the sector generated RMB500 million, up 17% year on year.

The gross production value in the Bohai Bay Rim Area was more than RMB954 billion, accounting for 38% of total output of the marine sector. Similarly, the gross production of the Yangtze River Delta region amounted to about RMB775 billion, or about 31% of the total output.
Source: English East Day

Largely in response to the pull from their American client base, mid-sized US freight forwarders have been expanding aggressively in China. Typically, this has drawn them to Shanghai first, but as their customers move inland, regional and domestic activities in other locations are on the rise.

IJS Global is a relative newcomer to China. The company’s declared goal is to become a logistics firm with annual revenues of around US$500 million and a global footprint, employing 1,200-1,500 people.

Over the past two years IJS has opened offices around the world. By mid-January, it had offices in 36 locations, plus agency partnerships in a host of markets. According to chairman and chief executive officer Giorgio Laccona, the expansion is now largely completed.

The forwarder opened its first China office in Shanghai and subsequently added Shenzhen.

Giorgio Laccona said, ‘We used to cover the area from Hong Kong, but we saw good opportunities with people we knew in Shenzhen. Now you can fly cargo from Shenzhen, you can truck it to Hong Kong or to Guangzhou.’

IJS is currently talking with an undisclosed Chinese company about a possible tie-in, which would give the US-based outfit a presence in a host of Chinese cities.

Giorgio Laccona said, ‘If this does not work out, we can expand into another four facilities with our Class A licence. In that case, the most likely targets would be Beijing, Qingdao, Guangzhou and Ningbo.

Chris Coppersmith, president and chief executive officer of California-based Target Logistics Services said, ‘Our emphasis has been on specific sales to American multinationals. Our American clients have pushed us to those locations.’ Target currently has nine locations in China and has had its own licence in the country since 1997.

BDP’s first China branch opened in Shanghai, followed by a representative office in Beijing, as it was not permitted to open its own office in the capital at the time, Ken Wensel recalled. He said that the red tape has shrunk significantly in the meantime.
Ken Wensel said, ‘The regulations are not obstacles any more, they’re hurdles now. They used to be showstoppers.’
Source: CargoNews Asia

A contradiction in terms but China’s fast developing express service industry may slow down in 2008. The fault will lie wih the US economy which is suffering from the sub-prime, dodgy loans which have been such a feature of its financial field.

Logistics Association China puts forward a scenario where foreign majors represented by DHL and Federal Express will tap the chance of Beijing 2008 Olympic Games to reinforce their leading positions in the Chinese market, while domestic players, especially private ones, which feature smaller business volume, weaker capital strength and poorer management, will start to have a rough time.

China’s express service industry has been growing at a pace of around 30% in recent years and become one of the fastest growing markets of the world.

True, but DHL China, which should know, states signs of a slowdown actually appeared in 2007 this despite the fact the Chinese market still maintained steady growth.

Another major foreign player, Federal Express China, is more optimistic, working on the the basis the Chinese economy to a degree can be independent from world market changes, It is certain that domestic express service market will continue stable growth momentum although the view of domestic analysts is that with the market base getting increasingly bigger, the growth of domestic express service industry will get slower as compared to years ago.
Source: CargoNews Asia

If you sell more goods you have to move them around — logistics — and therefore the direct correlation is more goods, more logistics. Elementary stuff. Yet the figures continue to astound.

According to the China Federation of Logistics and Purchasing (CFLP for short) last year China’s total logistics flow rose 25.5% to RMB74.8 trillion or US$10.27 trillion.

Lu Jiang, chairman of the CFLP said that domestic logistics enterprises faces challenges including competition from foreign companies, insufficient information technology support and transportation methods.

These are called growing pains. When you start talking about a $10 trillion industry it is a given the big will get bigger and, unless they are very specialized, the smaller players will proably get amalgamated.

Lu Jiang said there were challenges facing domestic logistics enterprises, including insufficient information technology support and transportation methods that were sometimes less than the state of the art.

He also said, ‘Although the industry maintained stable development in 2007, competition from foreign peers will mount in 2008 and the domestic logistics sector will see increasing openness.’ Which is a bit statig the obvious.
Sources: RTT News and Window of China

First came a preliminary suggestion that it would happen. Then came the final news. YRC Worldwide (formally Yellow Roadway which you may think a more memorable name) will acquire 65% of Shanghai Jiayu Logistics for between US$29.5 million and US$43 million, depending on Jiayu’s final 2007 figures.

The deal will not be totally complete until 2010 when YRC plans to purchase the remaining 35% interest in for around US$32 million.

Shanghai Jiayu Logistics is one of the largest providers of LTL ground transportation services in China, with a network of more than 3,000 vehicles serving more than 30,000 customers.

(For those wondering what LTL stands for it is a shipment that is ‘less than a truckload’. Cargoes from different sources are usually consolidated to save costs.)

YRC Worldwide chairman, president and CEO Bill Zollars, seen here, said, ‘China continues to be one of the fastest growing markets for our customers and an important part of YRC Worldwide’s overall strategy. The acquisition of Jiayu allows us to provide reliable ground transportation and is the next step in building a comprehensive portfolio of logistics services for our customers in China.’

Jiayu’s management will remain with the company.
Source: Eye for Transport

Mumbai-based Direct Logistics, a freight forwarding company, has acquired a Chinese logistics company, Shenzhen Dida Logistics, for an undisclosed amount.

This is the first-ever acquisition by an Indian company in Chinese freight forwarding industry. Last year, another Mumbai-based port-based logistics company Allcargo Global Logistics acquired ECU Hold NV, a leading Belgian cargo transportation company.

Direct Logistics, which is in the process of setting up its own office in China, is currently into warehouse-to-warehouse international transportation and marine insurance, apart from cargo.

Shenzhen Dida is focused on freight forwarding, logistics and international transportation. Sunil Devrani, managing director of Direct Logistics, said, ‘We have signed an agreement with Shenzhen Dida for acquiring 100% shares.’
Source: Wall Street Journal