European, North American and other overseas importers sourcing products in China should consider using new freight transport routing options. Specifically, they should look at shipping more goods directly out of mainland ports rather than via Hong Kong. In the case of goods sourced in southern China, for example, the company suggests importers should consolidate consignments there and ship them FOB from regional mainland ports. With greater preplanning and a change from convention, a more cost-efficient operation can result. However, it could be quite hard to persuade overseas importers to change established patterns of freight transport routing, he admitted.
Companies are willing to listen to new ideas but they are often slow to respond.
Developing the case for shipping goods directly out of south China ports, New claimed there were overall savings to be had through rationalising the cost and service factors, plus significant benefits to be had from consolidation. Right now, though, products sourced in southern China were in the main still moved via Hong Kong, New said, adding that even after last year's handover of Hong Kong to China, road traffic congestion at border crossing points between the two was still a problem, causing delays and extra costs. Importers should therefore consider alternative routings. However, buyers will need to pursue this more strongly with suppliers to achieve overall price improvement. Whatever the terms of sale, ultimately it was the buyer of the goods who would be paying the high costs of logistics in China, New said.