DB Logistics/Schenker has been caught-out by the idiosyncrasies of the Chinese transport regulations, having been accused by Chinese authorities of operating with ‘false’ NVOCC licenses.

According to a variety of press reports, the Chinese Ministry of Communications has issued a statement in Chinese that Schenker was being investigated for operating with falsified documents. It is believed that the statement calls on Schenker to cease all business in China concerned with ocean freight and for shipping companies not to deal with Schenker.

Schenker has denied this and stated that it clearly has received an NVOCC certificate from the authorities. The management at Schenker in China is reported as insisting that Schenker will continue to operate out of Shanghai and Hong Kong and there will be no interruptions in its service.

It appears that the problems encountered by Schenker concern the secondary licences issued for its operations out of Shanghai, rather than its longer established Hong Kong operations.

It is unclear whether the statement from the Ministry of Communications just reflects conflict within the Chinese bureaucracy, or if Schenker’s operations are in danger of being shut down.

With both the Chinese authorities and Schenker unable to confirm or clarify the situation to Transport Intelligence it remains hard to assess the gravity of the accusations.

Logistics operations in China are often vulnerable to machinations within the different levels of the Chinese state, with trucking services for example, effectively dependent on political favours by local politicians. Sea-freight has been an exception this due to its importance to the whole Chinese economy. As sea-forwarders and other LSPs penetrate deeper into China, the more likely they are to encounter the acute regulatory problems.

Source: Transport Intelligence

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