China Logistics
Establishing a supply chain into China remains one of the biggest challenges for many logistics and supply chain managers. Logistics Management’s China Logistics blog aims to demystify this daunting tasking by offering news/trends analysis, Q&A sessions, and tips designed help shippers establish an effective logistics and supply chain strategy into China.
Upcoming Holiday
China will be celebrating their National Day holiday next week. The holiday lasts 1 week and there is limited business activity that week. It is important to make plan around this work stoppage in order to avoid any disruptions in your supply chain. China will also be imposing restrictions on packages sent leading up to and during the holiday. An article on the the postal restrictions can be found ...... Read More
Comments (0)New Shipping Hub in Shanghai
Shanghai is opening a new shipping service center in the North Bund area of Shanghai. This is the second phase of a three stage project. The first stage was to open a cruise ship terminal which has been a success. The area has already attacted 2,400 shipping and logistics company and the district governor is expecting more companies to open offices in the area. To read the whole article, click her ...... Read More
Comments (3)New Logistics Center in Shanghai
American company Preferred Freezer Services is opening a cold storage facility in Shanghai. This is the first US owned and operated refrigerated facility in China. Even with demand for new factories in China slowing, demand for warehouses and logistics centers has remained strong. Currently Nike is building thier biggest logistics center in Shanghai. To read the full article in China Daily, click ...... Read More
Comments (3)Heavy Haul Conference in China
Shanghai will be hosting the Ninth International Heavy Haul Conference this week. China has invested a significant amount of resources into improving their railway system for shipping and this is their opportunity to show off their progress. The conference will focus on new technologies such as advanced technologies and equipment in the fields of heavy haul, high speed, operations management, loco ...... Read More
Comments (1)Shipping Route between China and Taiwan opened
Shipping routes between China and Taiwan opened this week. This is the first time since 1949 that there will be direct routes. This will eliminate the costly practice of shipping goods through Hong Kong. The immediate effect will be that people who ocean ship will save approximately 50 million dollars. In the long term, this is an important step in the development of Taiwan’s attempt to be ...... Read More
Comments (8)Projected Growth for Logistics Market in China
It was recently announced that China’s economic growth in the 3rd quarter was 9% compared to 10.1% in 2007. This is due to slower exports, investment and consumption. One industry that has not been hit as hard is the logistics industry. Analysts are projecting continued growth for the industry in 2009 and have stated "Asia Pacific region is the best placed to weather the current financial a ...... Read More
Comments (17)Port Capacity Balancing Act in China
In the past few months, China has struggled with the capacity of their ports. In the north, building of new ports has not kept up with growing demand. In the south the opposite is true. Production has slowed in many areas, but the government has already invested in increasing the capactiy of the local ports. Growth of the logistics centers in the south are currently outpacing the growth of product ...... Read More
Comments (0)New Logistics Center in Central China set to open
Transfer Logistics is set to open their new logistics center in Chengdu, China. The center will eventually have a capacity of 24 million tons of cargo. This is the second logistics center opened by Transfer Logistics. They plan on opening a total of 10 centers all across China. They will serve as transaction, information, warehousing and distribution centers. For the full article click here ...... Read More
Comments (2)Growing Logistics Industry in China
In China not many companies look to use 3PL companies for their logistics. The top 10 companies only own a 13% market share. The market is growing however, as companies are feeling heightened pressure to upgrade their supply chains. The logistics market in China grew at 26% from 2006 to 2007. Over 50% of American 3PL companies have plans to expand operations in China in the next few years. Two re ...... Read More
Comments (1)Manufacturing in China not for Everyone
Manufacturing in China does not make sense for every company. Many companies have underestimated the logistics costs involved in manufacturing in China and have decided to bring their production back to their home country. With rising logistics costs, it makes it all the more important to have a team on the ground in China to evaluate the production and logistics costs and decide whether it makes ...... Read More
Comments (3)Rising Fuel Costs in China
Rising jet fuel prices have caused many international carriers to rethink their shipping plans. Fuel prices have recently increased 25% in China. Although the price is still significantly lower than the international market price, the increase will force many carriers to cut back on their flights and focus on the profitable routes. Analysts are predicting the price will remain stable until after t ...... Read More
Comments (0)New Research on Supply Chain Risks
AMR (an independant research firm) recently ranked China as having the second highest supply chain risk (US had the highest risk). Factors cited in the study include geography rising transportation costs, and weakening consumer demand. While America still attracts a high percentage of sourcing due to the increased visibility of the supply chain, China still offers a major cost advantage and close ...... Read More
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