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Best wishes for the year to come! 
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#Logistics China#Asia-Europe rates fall 8% to USD 1,057 TEU as tranpac rises 13.3%

Spot rates from Shanghai Containerised Freight Index (SCFI) fell 8.3% USD 1,057 per Twenty Foot Equivalent Unit (TEU) on the Asia-north Europe route on Friday, making it the second straight week of declines.

Asia-Mediterranean rates fell 3.8%, but increased 13.3% to the US west coast and rose 6.2% to the US east coast, rising to USD 4,978 per FEU, a level not seen in more than a year.

After reporting a 13% increase in box volumes, Georgia Ports Authority executive director Curtis Foltz said: "Quite a bit of that is diverted."

Spot rates on the Shanghai-US west coast routes also showed solid increases during the week, adding USD 263 to reach USD 2,242 per FEU.
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#Logistics China#Asia’s emerging markets top Agility logistics index

Asian countries dominated the 2015 Agility Emerging Markets Logistics Index released today with four nations ranked in the top 10 emerging markets – China, Indonesia, India and Malaysia.

Out of the seven Asian countries among the top 20, five are Southeast Asian nations – Indonesia, Malaysia, Thailand, Philippines and Vietnam.

The annual data-driven ranking of 45 emerging economies is accompanied by a separate survey of nearly 1,000 global logistics and supply chain executives. Now in its sixth year, the index ranks emerging markets based on their size, business conditions, infrastructure and other factors that make them attractive for investment by logistics companies, air cargo carriers, shipping lines, freight forwarders and distribution companies.

In the survey, logistics executives were most upbeat about 2015 trade flows between Asia’s emerging markets and other emerging markets. Survey respondents also identified risks to growth by region and provided views on near-sourcing, e-commerce and other trends affecting emerging markets.

“Southeast Asia continues to be one of the world’s most vibrant, fast-growing areas. Growing domestic demand in Indonesia and Malaysia, a strong manufacturing base in Thailand, strong economic growth in Philippines, and a rapidly growing manufacturing base in Vietnam, all position the region well for continued growth,” said Morten Damgaard, CEO of Southeast Asia for Agility Global Integrated Logistics. 

Improving business conditions raised the “market compatibility” scores of Malaysia and Philippines. Malaysia and China ranked among the countries with the best “market connectivity,” a reflection of their transport infrastructure and links. Indonesia is among the “next-tier” non-BRICS economies with populations topping 100 million.

Data from the index showed that the world’s busiest air trade lanes, as measured by cargo tonnage, were those linking China with the U.S. and European Union. E.U.-China air freight was up 9.1 percent while U.S.-China air freight rose 7.1 percent. Outbound traffic also posted big gains as China-U.S. volume grew 14.3 percent and China-E.U. air freight increased 9.6 percent, the sharpest gains among top trade lanes that link the U.S. and E.U. to emerging markets.

U.S.-Vietnam was the fastest growing trade lane linking emerging markets to the developed economy, growing at 42.7 percent compared to 2013.

ASEAN’s 10 member states have been taking steps toward becoming a single economic market in 2015. The International Monetary Fund forecasts a rebound for one of ASEAN’s largest economies, Thailand, which has been dogged by political instability and remains under martial law.

The steady shift in manufacturing as companies moved away from having all their production in China to a "China plus one" strategy was continuing. The index identified this trend, as well as near sourcing, where companies set up manufacturing closer to their destination markets, such as in Mexico or Eastern Europe. Almost 68 percent of logistics professionals surveyed said they were seeing manufacturing shift locations closer to end markets.

Research firm Transport Intelligence (Ti) compiled the Index, and chief executive John Manners-Bell said global manufacturing retailers had become more sophisticated in their supply chain sourcing strategies.

“Their decisions are obviously based on international transport costs, and on supply chain risk, but the retailers also have to take into account the prevalence of a large and adequately skilled workforce,” he said.

“Apple may never build their products back in the U.S. because the large supply of labor required and the skill set doesn’t exist there, but the manufacturing environment is shifting and manufacturers are relocating elsewhere in Asia.”

For 2015, the International Monetary Fund forecasts average growth for the 45 countries featured in the Index at 4.57 percent.

“The factors driving growth are increases in population, size of the middle class, spending power and urbanization rates, along with steady progress in health, education and poverty reduction,” said Essa Al-Saleh, president and CEO of Agility Global Integrated Logistics. 

“That’s why we remain optimistic about emerging markets and continue to see them on an upward trajectory.”

Manners-Bell said five years after the global recession, prospects for all economies, developed and emerging, were still unclear. 

“Economic fragility, a falling oil price and increasing security concerns in Africa and the Middle East have created uncertainty,” he said.

“Despite the challenges, interest remains high in these volatile markets as indicated by increased infrastructure investment, expanding international trade and increased domestic demand. Global manufacturers, retailers and their logistics service providers need to remain cognisant of the shifting dynamics if they are to exploit the significant opportunities which exist.”
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#Logistics China#China’s December Logistics Business Volume Rises to 57.5

Following is a table of China’s logistics prosperity index (LPI) in December released by the Beijing-based China Federation of Logistics & Purchasing (CFLP).

The LPI is based on data compiled from monthly replies to questionnaires sent to over 300 logistics enterprises in 8 industries. It is an indicator about economic and business conditions in China.
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#Logistics China#Steady growth in China's logistics demand

Logistics demand in China grew steadily despite subdued strength in the world's second largest economy, latest data showed.

During the January-November period, goods worth 196.9 trillion yuan (32.2 trillion U.S. dollars) were moved around, an 8.3-percent growth from the same period last year, according to data released by the China Federation of Logistics and Purchasing (CFLP).

Costs in the logistics sector continued to retreat as lower oil prices since June reduced transportation costs. In the first 11 months, costs rose 8.2 percent year on year to 9 trillion yuan, slowing 0.1 percentage point from the growth in the first ten months.

Earlier data showed China's gross domestic output (GDP) expanded by 7.3 percent year on year in the third quarter of this year, the slowest quarterly growth since the first quarter of 2009.
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#Logistics China#Cold chain logistics industry expanding rapidly in China

China's cold chain logistics industry is yet to mature, given that up to 100 small firms scattered across the country must resort to outsourcing for cross-border transport and a lack of standards in the industry leads to shabby quality of services, Shanghai's China Business News reports.

The slowly maturing cold chain logistics industry is perhaps the only major impediment in the growth of the increasingly popular e-commerce market for fresh produce.

A cold chain is an uninterrupted series of storage and distribution activities, which maintains a given temperature range, according to Li Dongqi, vice president of SF Express.

In addition to some financially powerful fresh food e-commerce operators that have set up their cold-chain logistics divisions, others have all adopted the model of collaborating with third-party logistics operators, an unnamed industry expert told the newspaper.

The expert said that the difficulties involved in the delivery of fresh food products such as the high transport costs for fresh food e-commerce companies and the lack of standards governing the generally small-sized cold chain logistics firms are among the challenges faced by new firms.

The current situation has provided a good opportunity for the cold chain logistics industry though, the expert said.

Shenzhen-based delivery company SF Express launched cold chain logistics services in September, focusing on offering one-stop transportation solutions for fresh food suppliers.

SF Cold Chain's main clients are foodstuffs companies, fresh food material suppliers, restaurants and catering businesses, and fresh food e-commerce operators, such as Tmall and Taobao.

E-commerce firms have become the most important factor driving the development of the cold chain logistics industry. In 2013, the capacity of cold storage in China was 26.73 million metric tons, up 36% from a year earlier. SF Best recorded sales of 400 million yuan (US$64.27 million) in 2013, up 536% from 2012.

In 2013, China invested more than 100 billion yuan (US$16. billion) in the cold chain industry's fixed assets, reflecting a more than 24% year-on-year growth.

Several analysts predict that the cold chain industry will maintain a 20% growth rate this year. They also project an additional demand for 30 million tons of cold storage during the next five years.
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#Logistics China#Shanghai January container traffic up 5.3% to 3.16 million TEU

Shanghai, the world's biggest container port, has posted a 5.3% year-on-year record increase in box volume in January to 3.16 million Twenty Foot Equivalent Unit (TEU), according to the Shanghai International Port (Group) Company (SIPG).

In 2014, Shanghai was the world's busiest container port for the fifth consecutive year with an annual throughput of 35.29 million TEU, up 4.55 year on year.

The Port of Shanghai includes Waigaoqiao port, Yangshan port and Wusong port and docks 50,000 ships a year.
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#Logistics China#Activity in China's logistics industry slows in January due to approaching holidays

Activity in China's logistics industry slowed in January due to the approaching of Spring Festival holidays. Data from China Federation of Logistics and Purchasing showed on Monday that the China Logistics Performance Index was 56.3 percent in January, 1.2 percentage points lower than December, but still stayed at a relatively high level above 55 percent. 

Impacted by both slow manufacturing activity and the approaching holidays, sub-indices of employees, new orders and business anticipation all took a dip in January. Analysts say that with the upcoming Spring Festival, activity in the logistics sector will further weaken in February.
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#Logistics China#Maersk Line to increase Asia-Europe rates by USD 800 TEU from January 15

Maersk Line plans to raise freight rates for moving container cargo from Asia to northern Europe by USD 800 per Twenty Foot Equivalent Unit (TEU) from January 15.

Rates on the route, the world’s busiest for container shipping, fell by 5.6% in the last week of 2014 to USD 1,085 per TEU, according to data from the Shanghai Containerised Freight Index.
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#Logistics China#Kerry Logistics and Japanese duo set to win China courier approval

The door to China’s domestic courier market is about to be opened a little wider for foreign service providers, as the State Post Bureau prepares to green light Kerry Logistics and Japanese firms Yamato Logistics and OCS (Overseas Courier Service) to operate in the mainland express market.
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#Logistics China#China to spend USD 31 billion in new roads, third airport for Beijing

China is to spend CNY 192 billion (USD 31 billion) in the construction of five roads in the southern and central region as well as another airport in the capital to boost a slowing economy.

The roads will be built in Guangxi, Guangdong and Sichuan provinces, the National Development and Reform Commission said on its website. It said CNY80 billion would be invested to build a third airport in Beijing.

Official data showed investment, which accounted for 42% of China's economic growth in the first nine months of the year, rose at its slowest pace in 13 years between January and November at 15.8%.
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