July 15, 2008 | Link This | Email this | Comments (0)

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 sense to outsource. For the full article, click here.

July 8, 2008 | Link This | Email this | Comments (0)

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 the Olympics when the Chinese government will likely remove more subsidies and let the price rise even higher. Click here for the full article.

June 30, 2008 | Link This | Email this | Comments (0)

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 proximity to a growing customer base.  To capitalize on this cost advantage without bringing on too much risk in the supply chain, it makes sense to have constant communications with every stage in the logistics process. Click here for the full article.

June 26, 2008 | Link This | Email this | Comments (0)

China has recently opened a state of the art agricultural logistics center near Hong Kong  in southern China. The import/export center will have food-testing labs and warehouse space. This is a joint venture between the Oregon Department of Agriculture and a private Chinese firm.

 

The new logistics center will make the growing Chinese market much more accessible. It includes a domestic distribution center. This logistics center will make importing and exporting agricultural product in China much easier. Click here for more info.

June 3, 2008 | Link This | Email this | Comments (0)

The Chinese government has started to impose shipping restriction in advance of the upcoming Olympic games in Beijing. The Chinese Post Office has suspended mailing of liquids or powders as a safety precaution. Other products such as  powdered goods, chemical products, unidentified metal, mechanical and electrical products, as well as sealed containers with unidentified gases and liquids will also be banned from delivery.

It will be important to stay up to date on the latest shipping restrictions from the Chinese government in the upcoming months as they are in a particular state of flux. See this article for more detail.