Shipping & Logistics

Chinese Ministries Not Paying Their Bills, China Eastern Cancels 24 Dreamliners

Oct. 19 – China’s CNR Corporation, a state-owned enterprise that manufactures trains, is having to issue RMB2 billion in one-year bonds in order to finance debt it is owed from the Ministry of Rail, according to the South China Morning Post.

CNR, who are listed in Shanghai, had a negative second quarter in 2011, resulting in an operating loss of RMB8.58 billion against a positive inflow of RMB905 million in the same period last year. The company has firmly left the situation at the door of the Ministry of Rail. Continue reading →

Posted in Aviation, Economy and Politics, FDI and Foreign Trade, Shipping & Logistics | Tagged Air China, Boeing, China Aviation, China Debt, China Ministry of Rail, China Southern, CNR Corporation, Dreamliners, Hainan Airlines, Xiamen Airlines | 2 Comments

Wholly Foreign-owned Shipping Companies to See Relaxed Market Access

Sept. 21 – China will moderately relax market access conditions for wholly foreign-owned shipping companies, allowing them to touch a wider scope of business in the country.

According to the “Circular on Strengthening the Administration of Approval for Wholly Foreign-owned Shipping Companies (jiaoshuifa [2011] No.440)“ released by the Chinese Ministry of Transport (MoT) on August 15, the relaxed policy covers the following aspects:

A foreign shipping company is allowed to directly establish a wholly foreign-owned shipping company in China upon its actual needs, without first establishing a representative office Continue reading →

Posted in FDI and Foreign Trade, Legal and Regulatory, Regulatory Update, Shipping & Logistics | Tagged China Legal, China Logistics, China Regulatory, China Shipping, FOEs, Ministry of Transport | Leave a comment

China Offers New Incentives to Logistics Industry

Aug. 24 – In order to promote the robust development of the country’s logistics industry, China’s State Council issued new guidelines (guobanfa [2011] No.38) on August 19 offering fiscal and administrative incentives to logistics enterprises.

“The issuance of the guidelines showed the government’s determination to cure its ‘chronic disease’ in logistics, particularly how to handle problems concerning the high costs of logistics, such as road tolls, uneven business tax rates and repeated taxation issues,” He Liming, chairman of China Federation of Logistics and Purchasing – the country’s only officially approved large-scale comprehensive logistics organization – told the media. Continue reading →

Posted in Business, Legal and Regulatory, Regulatory Update, Shipping & Logistics | Leave a comment

Arctic Sea Routes Opening Up For China

Jul. 21 – The use of Arctic shipping routes is doubling this year as global warming makes it more convenient to traverse the Arctic Ocean when servicing Russia, Europe and Eastern China.

Escorted by Russian ice-breakers, the Arctic routes are being used from now until October. The first vessel to use the route this year is a Singaporean tanker, carrying gas condensate from the Russian Novatekc Purovsky gas processing plant to the city of Ningbo on China’s eastern seaboard. The arctic route cuts the time taken for the delivery from Murmansk to 22 days, about half of the normal voyage time when sent through the Suez Canal, as has previously been the case. Continue reading →

Posted in Business, FDI and Foreign Trade, Markets, Shipping & Logistics | 1 Comment

China’s Demand for Resources Brings Brazil Closer

By Vivian Ni

Jun. 3 – China and Brazil, two countries 17,000 kilometers apart separated by the vast Pacific Ocean and see great political and cultural differences, are witnessing an increasingly closer relationship due to China’s growing hunger for the South American country’s natural resources.

With most of its nationals not even familiar with the largest economy in Latin America, China’s role in Brazil’s economic development is becoming increasingly important. It just surpassed the United States as Brazil’s largest trading partner in 2009, accounting for 12.5 percent of the country’s annual exports, while the volume of exports from Brazil to China expanded by 18 times between 2000 and 2009. Continue reading →

Posted in Business, FDI and Foreign Trade, Markets, Oil & Petroleum, Shipping & Logistics | Leave a comment

China Industry Report: Apr. 26

Apr. 26 – This is a regular series of relevant industry news from around China.

Marine transport and shipbuilding
•Shipping Corporation of India said on April 15 it has inked an agreement for the purchase of two resale Supramax bulk carriers with Chinese Grand Yard Investments.

The two 57,000 deadweight-ton vessels will replace some of the company’s Handymax ships. The vessels are currently being built and the company expects to receive them in four to five months. In addition, the Indian firm has ordered six Handymax bulk carriers from China’s STX Shipyard. The vessels will be delivered this year or in 2012. Continue reading →

Posted in Business, FDI and Foreign Trade, Manufacturing, Markets, Science and Tech, Shipping & Logistics, Technology | Leave a comment

China Industry Report: Apr. 1

Apr. 1 – This is a regular series of relevant industry news from around China.

Marine transport, shipbuilding
• Hong Kong-based Orient Overseas (International) Ltd said on March 23 that it has ordered six container ships at South Korea’s Samsung Heavy Industries Co Ltd for a total US$816 million. The container shipper expects to pay for the vessels by securing bank financing and using internal resources.

The ships, each with a capacity of approximately 13,000 twenty-foot equivalent units, are expected to be delivered in 2013. Continue reading →

Posted in Business, FDI and Foreign Trade, Science and Tech, Shipping & Logistics, Technology | Leave a comment

Rising Demand, Supply Shortage to Cause Logistics Costs in China to Skyrocket

Rental rates of logistics properties across China expected to rise 20 percent this year

Mar. 24 – CB Richard Ellis, the world’s largest commercial real estate services firm, recently released a report describing how a more acute shortage of logistics land supply and a more rapid rate of appreciation of logistics rents will cause logistics costs in China to spike in the near future.

The report, “China’s Logistics: Rising Demand but a Shortage of Supply,” lists the major driving factors for logistics demand as: