With the promulgation of the policy to reducing the logistics cost, the pallet racking will be in urgent need.
The “Influence Report of Maersk Group in China” from shipping giant Maersk indicates that though the Chinese container shipping connectivity has already reached world advanced level, the logistics cost is still very expensive, the total logistics cost accountes for 18% of the GDP, this date is not only higher than many developed country, but also higher than the average date of Asia Pacific and South American countries.
A new report suggests that in developed countries, Logistics cost averagely accounts for 10%~15% in final cost. In developing country, the phenomenon of inefficiencies contribute to the raising of the logistics cost, they also account for 15%~25% or more, but to Chinese manufacturers, the logistics cost can up to 30%~40% of the production cost.
We can know from the Maersk’s date that, from 2007 on, the share of the logistics cost just from 18.4% fall to 17.8%, and the high cost of the logistics lead to the phenomenon that the price of the goods becomes higher, the Chinese competitiveness becomes weaker and the living cost of Chinese people will be raised.
The report analyzed that there are many reasons for the high logistics cost, one of them is the scattering of the industries, and then the lacking of unified management. It’s very slowly for many companies without logistics management department to deliver goods in the country; it usually needs to be converted many times by thousands of operators with low profit. These will not only increase the risk during the transportation, but also create much waste of the resources. Otherwise, the low market penetration rate of the third party logistics and the low outsourcing rate of logistics service is also lead to the high cost of the logistics.
However, the people in charge of Maersk said that, the low market penetration rate also means the serious potential in the future. The report predicted that, in the future ten years, the Chinese logistics market will raise 12%~16% per year, until 2016, will reaches 182 billion dollars, then will be the largest third party logistics market in the world.
For this, not only the DHL, the traditional shipping giant Maersk also investment and expanse in the third party logistics, the Maersk Inc’s Damco conduct series of acquisitions in recent years to become a third party logistics company providing scale integration services, their clients including global retailers and other international companies which in fashionable closes, sports, fashion, science and chemical industries.
The product supply chain management director of Damco in North Asia Gu Qing told CBN that, in recent years, the layout of Maersk in china is more than other developing countries, and the income in North Asia accounted for global is more than 50%, this year, the company will expand in North Area, and plan to establish eight new branches and offices, three of them will in china. Because of these, we will need numerous pallet racking.
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