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Freight market capacity and capacity continued imbalance
Source: | Author:woodwell | Published time: 2015-06-16 | 1217 Views | Share:
Due to China's growth is slowing and uncertainty in the world, and the carrier in capacity and capacity of supply and demand balance in the struggle

Due to China's growth is slowing and uncertainty in the world, and the carrier in capacity and capacity of supply and demand balance in the struggle. Because of the global supply chain are mostly in Asia, China's export weakness sting the transporters. Compared with a good beginning in early 2015, now traffic has started to shrink, but by sea and air transportation capacity is growing.

Due to the excess capacity on the main trade area of Asia and within Asia into large ship, the south and the north from Asia and Asia regional freight faces significant downward pressure.

Business in Asia to Europe and the Mediterranean route ship company most affected. , according to Shanghai container freight index (SCFI) in early June, Shanghai to northern Europe's rate of 284 usd/TEU, this is the SCFI announced the lowest level since October 2009, the rate even isn't enough to cover the fuel surcharge.

Due to the spot market downturn in the freight shipping and other cargo interests pay cost less. A Hong Kong freight forwarders, said his company confirmed a lump rate from Shanghai to Hamburg, for $300 / FEU, the price includes oil and all the surcharge.

From April to July in the traditional container off-season for liner companies. In April, according to the CTS data, Asia - Europe volumes fell for a second consecutive month, fell 1.2 million TEU, fell by 9.1% for the four months to transport 4.7 million TEU, 3.4% less than the same period last year.

In the first quarter of this year is the most profitable period container industry for nearly four years, a preliminary estimate operating margins at around 8%. Those who had hoped to borrow the firm began to have a good year of liner company bosses, in the face of the next rate decline will be disappointed.

If you insist on refusing to spare plenty of supply capacity, then the shipowners' only option is to cut the service. According to Copenhagen consulting and SeaIntel data, Asia to northern route is decreased from 26 to 21; 15 existing at the same time, Asia and the Mediterranean Sea routes and reduce 2 before. Hong Kong is already attached to decrease the sixth week, Rotterdam affiliated amount is reduced from 21 routes to 19 route.

Capacity, however, did not respond. In the nearly three years, Asia - Europe route ship type from 10000 teu to expand to an average of 10000 teu, Asian regional form from 7000 teu to expand to 9000 teu. In addition to a small amount of course, compared with 2012, Asia weekly capacity to northern route supply has increased by 8.4%, increased by 2.7% to the Mediterranean Sea routes.

Shipping consultancy Drury, said at the end of 2015, there will be at least 35 10000 teu and launching, most of them will enter the asia-europe run. In late 2015, the new production of ship and market share will probably continue to pressure on the market rate.

Although Asian American trade and trade between Asia still pressure by the freight rate, but the service and the demand for large ships are still growing. Alphaliner said the shipping company has been for Asia to eastern route configuration consisting of 60 ships six new routes, including 50 panamax ship. During the winter season, there are more than 10 5000-6000 teu ship to rejoin the Asia - the beauty of the west route of the ship.

Internal service also provides a new route in Asia that opened 33 new regional airline by the end of June, 98 boat in the water, this is more than any other region.

These new routes ship form is a traditional short-range waters ship form, the average capacity in 1000-2000 teu, via Bangkok, coastal defense and yangon these popular port by draught conditions.

More than 2000 teu ship to join another article 27 north Asia - southwest airlines, the largest is the 4500 teu ship oocl, in northern China - klang on routes, began to replace the original since January 2500 teu ship type. Most of the new fleet capacity investment in Asia regional routes, while others into the feeder.

Shipping company for peak season, and hopes the traffic demand growing again to restore profits, but in recent months swerved more performance, the situation is not optimistic. To be sure, however, are still in the recovery of the United States and fragmented transport demand provided by the European (cargo) are difficult to meet the Asian maritime, aviation excess capacity.

Is specialized (focus) on Manufacturing & Developing the Technology of Welding & Cutting industrials.

Along with the China/ Asia shipbuilding industrial developing, Wood Well Limited start to touch the shipbuilding associated biz and products, looks like: BWMS, Cutting Tools, Welding Machine, Pipe, Power Cable,CBM…..

And the industrial field enlarge to: Mold Maker, automotive, Pressure Vessel, Chemical Energy….

In order to strength our ability, we invest and cooperate with some good potential China manufactory on “welding & cutting” from 2007 Year.

 

From 2010 Year, we cooperate with LG, Samsung to agent and sales on China market.

The beginning products is from the Recycle Chemical Resin: HDPE, LDPE, and LLDPE.

Now we have developing the more cooperate field with LG, Taita , Samsung….

 

On 2013 Year, we open the China Independent Corporation in China Shanghai:

Shanghai D&Z International Trading Co., Ltd.

And have the China Representative Office at Dalian, Zhuhai,

And the same year we set the Indonesia Representative Office in Surabaya.

It is enlarge out biz scope from Asia to East-Asia.

 

On 2014 Year, we register the “GSC” Brand for production the welding & cutting materials.

It is widely apply on the industrial fields.

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And we set the Japan Representative Office in Tokyo on 2014 Year.

It is help us upgrade our quality and service standard, and have the chance to cooperate with Japan famous company: Kyocera, Toshiba, Asahi….

 

On 2015 Year, we set the Brazil Representative Office in San Paulo.

The 2016 Rio de Janeiro Olympic Games will be hold son, we hope our products and service could win this market.

 

During the last 14 years developing, and all the Wood Well Staff hard working, now we have the 3 main division with 7 Section.

 

 

 

 

DIVISION

SECTION

BIZ MODE

Manufactory Industrial

Shipbuilding

Invest & Cooperation
Develop the Association Manufactory

Welding & Cutting

Machinery

Medical Device

 

 

 

Chemical Industrial

Chemical Resin

Cooperate & Agent

Recycle Resin

 

 

 

Energy Industrial

Photovoltaic

Cooperate & Agent

 

 

In order to continue to be an essential company for our customers and society as a whole, we value CSR activities and work to employ sound business practices. We want to contribute as much as we can to achieving a bright, prosperous future for all those that support us.

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