What's happening in China ?

 

China Trade Specialists 

 

WM Logistics (Worldwide) Ltd.

Enjoy our comprehensive service
offerings and extensive
forwarding network in Asia
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Ever Harvest Shipping Ltd

Your partner of choice for
developing your China business!
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Jiangsu Ferliks International
Logistics Inc.

Modern logistics solutions for
your modern logistics needs
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Fohang Wonstar Shipping
(HK) Co., Ltd.

Co-creating value with customers,
developing with employees and
promoting harmony with society.
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Shenzhen Link-Run Logistics
Co., Ltd.

Nobody knows logistics in China
better than us!
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Lionfreight (Tianjin) Co., Ltd.

The king of the jungle for
integrated logistics solutions
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Panda Logistics Co., Ltd.
Qingdao Branch

Qingdao's leading consolidator
and comprehensive logistics
service provider
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Unitex Int'l Forwarding
(HK) Ltd

Efficient, flexible and reliable
service solutions for your global
supply chain
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Golden Fortune Shipping
Co., Ltd.

We are now Accessible Anywhere
and Anytime
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Sinostar (Shanghai) Shipping
Co., Ltd

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Greaten Shipping Agency Ltd.

The pursuit of excellence
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Shanghai Riqian Logistics
Co., Ltd

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Jardine United International
Shipping Agencies Ltd.

The world's Local Agent
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Jaguar Logistics Co. Ltd.

Reliable and prompt freight
forwarding services at competitive
prices
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ESA Logistics (HK) Co., Ltd.

Your partner of choice for worldwide consolidation, customs clearance, warehousing and distribution or specialty shipments.
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Wellion Int'l Logistics
(Shenzhen) Co., Ltd

To handle your cargo professionally, efficiently and cannily
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Big ships do shippers no favours: fewer calls, slow transits,
high inventory costs

 


AS containerships become larger and with only a few major ports capable of handling the biggest, shippers have come to question whether ship size does them more harm than good.

Along the east coast of the United States, whose hinterland ranges to the Mississippi River, lies 70 per cent of American consumers, the world's biggest retail container shipping market.

But east coast US ports are only beginning to dredge channels to the depths needed for 14,000-TEUers that are expected to transit the Panama when fully expanded in 2015, which some say will result in more awkward hub and spoke transshipment operations slowing deliveries yet again...

It took more than a decade of environmental research and litigation to get the Savannah River dredging to a shovel-ready state, and while the current US Administration is keen to carry out dredging at Charleston and elsewhere, it still promises to provide more work for lawyers and academics than hard-hats for years to come.

It's the same in Europe. China Shipping Container Lines (CSCL) praised the efficiency of Hamburg, Germany's most important port 100 kilometres up the River Elbe, but thinks it is too shallow as it is. "Ships are becoming larger and larger. For Hamburg, it is very important how deep the water is," a CSCL executive told London's Containerisation International.

Plans to deepen the Elbe have been around for years, and were well under way until the Federal Administrative Court in Leipzig ruled that work must stop until eco-concerns were settled. It may well take years before all appeals are exhausted and the project is truly shovel-ready.

While a problem for carriers, customers are not nearly as enamoured of mega ships as shipping lines, reports London's Loadstar. Economies of scale appear to accrue to carriers while shippers cope with problems - added landside congestion, reduced frequencies and a need to hold more costly inventory than ever before.

There is the problem of the limited number of ports worldwide capable of handling ships greater than 10,000 TEU in an age when 16,000-TEUers are in service and 18,000-TEUers are on the way.

Twenty loops today employ ships above 10,000 TEU, according to Alphaliner's survey of all regular liner services as at December 2012. Sixteen of these serve on the Far East-Europe route, while two run from the Far East to the US west coast, and one from the Far East to the Middle East.

All but two call at Shanghai, making China's commercial capital, the planet's mega ship hub with its 18 calls a week. Next comes Shenzhen with 17, while Ningbo is close behind with 15 weekly mega ship calls.

But with the opening of the expanded Panama Canal, and the raising of New York's Bayonne Bridge in 2015, the stage is set for the US east coast ports to receive mega ships in the next three years.

This is regarded with a growing sense of alarm by shippers at the recent TOC Americas Cold Chain and Container Supply Chain conference in Panama.

"The problem is not cost," said Kraft Foods logistics manager Hernan De Mezerville told the Loadstar. "The carriers are trying to maximise ship size but if they are reducing the frequency of the ports that they reach that will cost me in cash flow."

 

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