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Newest figures show that China has now overtaken Japan as the second largest economy in the world following Japan.

This improvement in the relative performance of China is encouraging news to the freight forwarding sector in China, that has been battling with the international downturn in trade in recent years. However, even with the international slowdown, there was some development in China's freight transport infrastructure in 2009, as it anticipated this improvement in performance and planned for development in demand for freight solutions. China's response to the international economic downturn has been to seize the initiative and plan for a much better future for China import.

More than current years, China has skilled a worldwide decline in demand for Chinese imports and this has of course had a massive influence on the freight solutions business of the export dependent country. Demand for China imports such as toys, furniture and textiles has been dampened by the most serious financial downturn in decades.

Nowhere has the decline in demand for China imports been felt more keenly that in the box visitors trade. China's two biggest container ports are Shanghai and Shenzhen. The throughput figures at each have noticed year on year falls and the throughput figures mask an even worse performance in terms of laden containers. The Shenzhen port figures for freight forwarding are a direct reflection of manufacturing in the Pearl River Delta.

As imports to China have also declined as a outcome of its personal domestic slowdown, the volume declines have been evident in both inbound and outbound containers.Inbound cargo includes raw supplies and components, which are then processed into finished goods for export at factories in the southern Guangdong, China's economic powerhouse. The high level of import of raw materials for subsequent processing and export means that the freight solutions sector in China has had a double whammy, as declines in manufacturing due to decreased demand for China import has a direct knock on effect on international freight visitors into China as well.

Throughout this difficult period, domestic demand in China has accounted for some increases in domestic container trade, and this has been welcome news for numerous a shipping company. Domestic demand has usually been noticed in increased trade in cargo from the south of China to the North.In general, the advantages of domestic freight transport have been experienced much more in the Shanghai, northern ports such as Quingdao and Tianjin and the smaller ports, as they deal with a larger proportion of domestic trade by shipping businesses.

However, spurred on by the impact of the international slowdown on China, Beijing has elevated its concentrate on enhancing the international freight transport infrastructure. The China government has spearheaded a raft of initiatives. This consists of each physical upgrades and revisions to the systems that impact international trade and international freight solutions.

Other initiatives have also helped pave the way for the next upturn, such as new direct shipping links in between China and Taiwan. Kaohsiung in Taiwan, which was the world's third busiest container port in the 1990s,saw its ranking slip with China's financial rise, as a lack of direct transportation links with China undermined its position and significance for the freight company.

A deal in between the two former political rivals has renewed Chinese interest in the port, driving investment plans. Shipping companies previously made pricey detours through third nations to get cargo from 1 side to the other. So the new direct shipping links will make freight transport much more streamlined and cost efficient.

Other initiatives associated to the freight solutions industry have also taken shape throughout the period of financial slowdown, putting China in a better position as the recovery arrives.

1 fascinating initiative has been a joint venture in between America's CYBRA Corporation and Important West Technologies which have joined forces with the Chinese Transport Ministry's Water borne Transportation Institute (WTI) to develop and manufacture container tracking devices for international freight. A joint venture, Beijing Smart Shipping Technologies (SST),has been set up to create intelligent shipping container devices and other intelligent transport tools to create higher consignment visibility in maritime shipping. CYBRA, which is a developer and distributor of bar code software for IBM, will join its partners in developing the world's only real finish-to-finish global tracking and monitoring solution for the freight solutions industry.

As globe leader in exports, regardless of the slowdown, China is thus taking a leadership role in supply chain tracking, monitoring and management. It is believed that in the future, secure inter modal freight transport will rely on intelligent technologies. China's role in facilitating the commercialisation of such products will be of fantastic advantage to shipping companies and certainly every freight business, permitting them to add value to their service. The intelligent technologies will allow each piece of cargo to be tracked, monitored and managed anywhere in the world.

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