The forwarders view

Port Strategy: What are the most challenging supply chain issues forwarders currently face at Chinese ports?

Christoph Matthes: Besides the ongoing rises in local tariffs at the ports like Terminal Handling Charges, Container Freight Station fees and handling/stuffing charges, for export shipments customs clearance procedures can widely differ at ports in each city.

PS: Are you seeing faster growth in terms of logistics demand from central areas of China and the North than from traditional exporting areas in the South?

CM: Yes, growth rates in North and West China are much faster than in South China. Ports in North China like Tianjin, Dalian or Qingdao are becoming more and more important. As a result, there has been an increase in the erection of infrastructure to match the rising demand.

PS: Where are you expanding your network in China?

CM: In 2012 we opened five offices in Jiangyin, Mianyang, Yunfu, Kunming and Shuitou, and we have plans to open seven more offices during 2013.

PS: These new offices show a heavy slant towards investment in the interior and West by DB Schenker. Why is this?

CM: Yes, logistics demand is constantly changing in accordance with the development of the China market influenced by new government policies. Evidently, worldwide imports to China are increasing year-by-year thanks to rapid development of China’s provinces in the West, appreciation of the Chinese Yuan and the rapid growth of the middle-class in China. Furthermore, the government’s “Go West” policy and increasing labour costs in the port cities have influenced decision-makers to establish new manufacturing plants at inland locations.

PS: Trade between Japan and China was affected in late 2012 due to a territorial dispute over some islands in the South China Sea. But how is trade between China and Taiwan given the historical issues the two countries have had – is this a growing lane for ocean shipping?

CM: The trade between Mainland China and Taiwan continues to increase. In 2012, the growth rate was approximately four percent. Imports from Taiwan are the major contributor. Yantai and Shanghai are the main ports handling such business due to Taiwan-funded enterprises that are located in the Pearl River Delta and Yangzi River Delta. In recent years, these companies have also relocated to Western provinces like Chongqing, Henan and Guangxi.