Growing pains affect all things that develop quickly, and China is no exception. It’s all very well to churn out record amounts of clothes, furni-ture and toys for export, but It’s no good if those items can’t be shipped overseas due to overcrowded ports. To aid resolution of the problem, an innovative deep-water terminal off the coast of Shanghai is aiming to make the financial capital the biggest port city in North East Asia.

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There is a rush to build distribution centers (DCs) in China, following the recent massive manufacturing surge. But there may be one more important reason for this movement. The cost of warehouse workers in China is $2 an hour, while in the U.S. it’s $14 to $15 an hour.

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A 12 per cent hike in ocean freight rates by major shipping lines will be effective from today (Thursday), making international trade costlier for Bangladesh and its export products less competitive in the global markets. Exporters fear loss of market.

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PORTS and ferries group P&O bowed to a ?3.3bn takeover from Dubai yesterday as the iconic shipping brand signalled the end of 168 years of independence. P&O’s board admitted the price offered by Dubai Ports World was too attractive to turn down, although it had not been looking to sell up. And, providing rival bidders do not emerge, the combination should create one of the world’s top three ports companies. P&O’s operations and its brand will survive, and there are unlikely to be any job losses.

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Deutsche Bahn and its logistics subsidiary Schenker have become involved in a major political controversy in Germany related to the relocation of its head office from Berlin to Hamburg. It also seems that privatisation may not occur until 2007, a year after DB’s chairman intended.

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Schenker?s complete range of airfreight products has been unified under the umbrella of SCHENKERsky, a new global standard. Within the new structure, SCHENKERjetcargo and its service levels first, business and economy deal with time-definite products for general cargo, whereas SCHENKERjetcargo special handles specific commodity groups such as dangerous goods or customized solutions such as on-board couriers.

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UPS charges will be greater for most U.S. small package services, though there will be a reduction in air fuel surcharges. Rates will increase by 3.9% for commercial ground services and 5.5% for air and international shipments. The new rates will be posted on the company?s web site at www.ups.com on December 1 and be automatically integrated into customer systems when they take effect on January 2, 2006.

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AMR Research released its second annual report, ?The AMR Research Supply Chain Top 25 for 2005.? The report identifies the top 25 manufacturers and retailers that exhibit superior supply chain capabilities and performance. Supply chain leaders are able to shape demand, instantly respond to market changes, and crush their competitors. According to AMR Research benchmarking data, leaders carry 15% less inventory, are 60% faster-to-market, and complete 17% more perfect orders. These advantages separate predators from prey.

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If UPS were an airline, it would be the 9th largest in the world. Last year UPS delivered over 3.5 billion packages, the equivalent of nearly 10,000 every minute. But these days the giant shipping company is branching out. It is now positioning itself as a company to turn to for complete supply-chain solutions, handling tasks like computer repair and the warehousing of auto parts for multinational companies.

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A reorganisation of shipping services to New Zealand is under way in the wake of the takeover of P&O Nedlloyd by Maersk and the takeover of CP Ships by Hapag-Lloyd. The global mergers created more powerful shipping companies but in this part of the world they precipitated the break-up of a shipping alliance and an overhaul of many shipping routes. The changes have ramifications for rail freight, coastal shipping and every port in the country.

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