China-Port Recovery

Shotlist

Shenzhen City, Guangdong Province, south China – Recent (CCTV – No access Chinese mainland)
1. Various of biotech equipment production in factory
2. SOUNDBITE (Chinese) Zhai Liuwei, president, Dymind Biotechnology (partially overlaid with shots 3-4):
” We performed strongly in the first half of this year. Our overseas business has nearly doubled. We see substantial growth in operations in Southeast Asia, South America and Europe.”
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3. Biotech equipment production in factory
4. Various of Zhai in meeting
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5. Various of trucks carrying containers to Shekou port
6. Various of containers at port
7. Various of containers on cargo ships
8. SOUNDBITE (Chinese) Zeng Xiao, deputy general manager, Shenzhen Regional Operation Center, Sinotrans South China (partially overlaid with shot 9):
“In the first quarter, cargo had to wait for two weeks before being shipped. The backlog started to ease since the second quarter and the waiting period was shortened to within one week. It now takes only three to five days, which greatly reduces costs for clients.”
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9. Containers on cargo ship
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Guangzhou City, Guangdong Province, south China – Recent (CCTV – No access Chinese mainland)
10. Various of containers on cargo ships at Nansha Port
11. Various of container being unloaded from ship, loaded onto truck
12. Truck leaving
13. SOUNDBITE (Chinese) Shen Jiayu, deputy director, Business Development Department, Guangzhou Nansha Terminal current Phase I, II (partially overlaid with shot 14):
“This ship sails on a route designated for RCEP countries. The route serves as a golden channel connecting Nansha Terminal with Southeast Asian countries. From January to June this year, we handled 368 such vessels, up 35 percent from last year.”
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14. Ship, containers
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FILE: Guangzhou City, Guangdong Province, south China – Jan 10, 2022 (CCTV – No access Chinese mainland)
15. Various of bulk carrier sailing

Storyline

Chinese ports are returning to hustle and bustle thanks to easing container backlogs and rebounding trade volume.

According to the General Administration of Customs, China’s foreign trade of goods jumped 9.4 percent year on year to 19.8 trillion yuan (about three trillion U.S. dollars) during the first half of 2022.

Exporters have reported robust growth in business.

“We performed strongly in the first half of this year. Our overseas business has nearly doubled. We see substantial growth in operations in Southeast Asia, South America and Europe,” said Zhai Liuwei, the president of Dymind Biotechnology based in Shenzhen City in south China’s Guangdong Province.

The main contributor is the easing of container shortage since the second quarter.

“In the first quarter, cargo had to wait for two weeks before being shipped. The backlog started to ease since the second quarter and the waiting period was shortened to within one week. It now takes only three to five days, which greatly reduces costs for clients,” said Zeng Xiao, the deputy general manager of Shenzhen Regional Operation Center under Sinotrans South China, a logistics company based in Guangzhou City in south China’s Guangdong Province.

Another booster to the ocean freight market is the Regional Comprehensive Economic Partnership (RCEP) which came into effect on January 1st, 2022.

The pact, signed between 10 members of the Association of Southeast Asian Nations (ASEAN) and five of their largest trading partners — China, Japan, South Korea, Australia, and New Zealand, is facilitating China’s trade with other member countries.

“This ship sails on a route designated for RCEP countries. The route serves as a golden channel connecting Nansha Terminal with Southeast Asian countries. From January to June this year, we handled 368 such vessels, up 35 percent from last year,” said Shen Jiayu, the deputy director of the Business Development Department at Guangzhou Nansha Terminal Phase I and Phase II.

Despite the improvement at ports in China, global logistics executives expect global port congestion to remain problematic until early 2023.