China Freight Forwarder Industry News Review:April 27-May 3

China Freight Forwarder Industry News Review 3

1. On the evening of April 26, COSCO Haikong announced its first quarter results for 2019.

The operating income was 35.075 billion yuan, a year-on-year increase of 13.352 billion yuan, an increase of 60%. Net profit attributable to shareholders of the stock market was 687 million yuan, a substantial increase of 280% year-on-year.

Twings’s view:
Different companies experience different situations in the shipping market. COSCO has achieved substantial growth through mergers and acquisitions, in line with expectations. Affected by the policy bonus of China’s Belt and Road Initiative, COSCO may continue to improve in recent years.

2. The Spanish news agency EFE published an article on April 27th reporting that with the official participation of Peru, China’s Belt and Road Initiative started in 2013 has already joined 19 Latin American and Caribbean countries.

The article said that on April 26, Peru signed a MOU during the opening of the second BRI International Cooperation Summit. This is the main form of a country’s participation in the BRI. Peruvian Minister of Foreign Trade and Tourism Edgar Vazquez signed an agreement with China in Beijing.

Twings’ view:
The bonus of BRI is further accepted by the majority of Latin American countries. It is foreseeable that Peru’s superior agricultural products and other products will further enter the Chinese market. Container transportation from the port of Callao in Peru to Shanghai and Ningbo, the eastern major ports of China, will be more prosperous.

3. Zhongchuang Logistics, representative of China’s traditional international freight forwarders, listed.

On April 29, Zhongchuang Logistics Co., Ltd. was listed on the main board of the Shanghai Stock Exchange. The IPO was 66,666,700 shares with the issue price of 15.32 yuan/share, and the raised funds of 919 million yuan. The funds raised will be used to invest in the acquisition of dual-use ships for coastal transportation, the purchase of bulk carriers, the cross-border e-commerce logistics distribution center (Tianjin Dongjiang Yard), logistics information construction, and large-sized transportation equipment purchase projects.

Twings’ view:
Among the main revenues announced by Zhongchuang Logistics, freight forwarding services accounted for 67%. This shows that it is a traditional freight forwarder. According to the use of the raised funds, its development may extend from freight forwarding to shipping and other fields. It can be seen that the mutual penetration and interaction of freight forwarding services, shipping and other businesses is a long-term inevitable trend.

4. All 9000 “LV” scarves in Yiwu’s export container are fake! The freight forwarding company and customs broker involved were investigated!

On April 23, the General Administration of Customs promulgated the “Typical Cases of National Customs Intellectual Property Protection in 2018”, which included a case involving a suspected Yu exporting fake “LV” scarves. In this case, Hangzhou Customs and the public security department unveiled a network of cross-country counterfeiting activities involving production, wholesale and retail.

Twings’ view:
China Customs has been committed to protecting intellectual property rights. It should be praised. In addition, this case in Yiwu also gives a reminder to foreign traders. Although the market of Yiwu small commodities is large, the intellectual property rights can never be violated, or else it will be sanctioned by law.

5. CCTV’s two live broadcasts focused on Ningbo Zhoushan Port

Recently, CCTV broadcasted a report on Ningbo Zhoushan Port’s active partiipartion of the BRI in the CCTV-13 Live News at 3 pm and CCTV-2 China Financial Report at 4 pm. Ningbo Zhoushan Port is an important port along the 21st Century Maritime Silk Road and an important link in the Silk Road Economic Belt. It is committed to creating the best combination of “One Belt, One Road”.

Twings’ view:
Ningbo Port is playing a bigger role in the pattern of the BRI. Many sea-rail combined transports led by it have increased the speed and efficiency of containers exporting by Chinese mainland enterprises. At present, Ningbo Zhoushan Port has become the largest port of China’s southern sea-rail combined transport, and witnessed the transformation of China’s central and western inland cities to a new frontier.

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