Comments on: Transportation Costs and Their Impact on the China Model http://www.allroadsleadtochina.com/2008/08/11/transportation-costs-and-their-impact-on-the-china-model/ Sun, 14 Mar 2010 10:49:23 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: Rich http://www.allroadsleadtochina.com/2008/08/11/transportation-costs-and-their-impact-on-the-china-model/comment-page-1/#comment-1587 Rich Tue, 26 Aug 2008 06:15:26 +0000 http://www.allroadsleadtochina.com/index.php/2008/08/11/transportation-costs-and-their-impact-on-the-china-model/#comment-1587 David. Haven't seen anything yet worth commenting on, and the impact would depend on the terms of the deal. It is possible that the downturn in the stock market may have made the deal better for YRC (USD rebounding too), but it all depends on how their structured the deal, when the cash/ equity transfer took place, etc. Also - while YRC/ Jiayu have agreed on terms, I am pretty sure that the final approval has yet to come through. R David.

Haven’t seen anything yet worth commenting on, and the impact would depend on the terms of the deal. It is possible that the downturn in the stock market may have made the deal better for YRC (USD rebounding too), but it all depends on how their structured the deal, when the cash/ equity transfer took place, etc.

Also – while YRC/ Jiayu have agreed on terms, I am pretty sure that the final approval has yet to come through.

R

]]> By: David http://www.allroadsleadtochina.com/2008/08/11/transportation-costs-and-their-impact-on-the-china-model/comment-page-1/#comment-1588 David Mon, 25 Aug 2008 19:36:14 +0000 http://www.allroadsleadtochina.com/index.php/2008/08/11/transportation-costs-and-their-impact-on-the-china-model/#comment-1588 Chris & Rich -- How is the YRC / Jiayu deal playing in China? What (if any) impact did the stock market slump have on the deal which was announced over a year ago when the market was considerably better? Any other insight? Chris & Rich –

How is the YRC / Jiayu deal playing in China? What (if any) impact did the stock market slump have on the deal which was announced over a year ago when the market was considerably better? Any other insight?

]]> By: Christopher Corkery http://www.allroadsleadtochina.com/2008/08/11/transportation-costs-and-their-impact-on-the-china-model/comment-page-1/#comment-1591 Christopher Corkery Wed, 20 Aug 2008 03:29:30 +0000 http://www.allroadsleadtochina.com/index.php/2008/08/11/transportation-costs-and-their-impact-on-the-china-model/#comment-1591 We spoke too early perhaps...the news on YRC today may be a small sign. We spoke too early perhaps…the news on YRC today may be a small sign.

]]> By: Rich http://www.allroadsleadtochina.com/2008/08/11/transportation-costs-and-their-impact-on-the-china-model/comment-page-1/#comment-1589 Rich Mon, 18 Aug 2008 09:21:17 +0000 http://www.allroadsleadtochina.com/index.php/2008/08/11/transportation-costs-and-their-impact-on-the-china-model/#comment-1589 Hi Chris. People want to see what they want to see. China does manufacture a lot of batteries, some of them very good (BYD)... but if you are going to promote "green", you need to be it. Yeah.. I have a post coming on China's "downfall". it's amazing ... TEUs at all time high. Epxorts by value growing YoY. How are they uncompetitive? I have not seen any new 3pls form, but to be honest I have not been looking all that close. It is clear that the trend is for stronger/ larger firms, and Kerry and IDS were leading the pack. Others are still working the kinks out, but I am pretty confident that the the best 3PLs will remain internal to the Haiers of China. R Hi Chris.

People want to see what they want to see. China does manufacture a lot of batteries, some of them very good (BYD)… but if you are going to promote “green”, you need to be it.

Yeah.. I have a post coming on China’s “downfall”. it’s amazing … TEUs at all time high. Epxorts by value growing YoY. How are they uncompetitive?

I have not seen any new 3pls form, but to be honest I have not been looking all that close. It is clear that the trend is for stronger/ larger firms, and Kerry and IDS were leading the pack. Others are still working the kinks out, but I am pretty confident that the the best 3PLs will remain internal to the Haiers of China.

R

]]> By: Christopher Corkery http://www.allroadsleadtochina.com/2008/08/11/transportation-costs-and-their-impact-on-the-china-model/comment-page-1/#comment-1590 Christopher Corkery Mon, 18 Aug 2008 06:34:17 +0000 http://www.allroadsleadtochina.com/index.php/2008/08/11/transportation-costs-and-their-impact-on-the-china-model/#comment-1590 Rich: I agree with you that Tesla's original plan is by far the most interesting/curious part of the article. How on earth that made sense in the first place, I can not say. In terms of China export, I am continuing to see plenty of Fortune 500s continue or even increasing their China sourcing. They do seem to be doing it in a much smarter mnner however. The three areas I am doing a good deal of work on to allow for continued China sourcing include more heavy analytics around supply chain risks, CO2e impact analysis and domestic China transportation. Yes, most firms are finally figuring out how important the domestic China piece is. My one question for you: Do you see enough activity in the China 3PL world to finally justify the long dreamt of movement inland? Yes Chongqing is a manufacturing center. However, will it ever be able to leverage the lower wages and improved transport infrastructure from Sichuan to the Port to become a larger global player? My sense is that we are still waiting for larger 3PLs to play a more central role in China logisitcs (read: logistics outside Jiangnan and Guangdong) before this can happen. Hope all is well. Chris Rich:

I agree with you that Tesla’s original plan is by far the most interesting/curious part of the article. How on earth that made sense in the first place, I can not say.

In terms of China export, I am continuing to see plenty of Fortune 500s continue or even increasing their China sourcing. They do seem to be doing it in a much smarter mnner however. The three areas I am doing a good deal of work on to allow for continued China sourcing include more heavy analytics around supply chain risks, CO2e impact analysis and domestic China transportation. Yes, most firms are finally figuring out how important the domestic China piece is.

My one question for you: Do you see enough activity in the China 3PL world to finally justify the long dreamt of movement inland? Yes Chongqing is a manufacturing center. However, will it ever be able to leverage the lower wages and improved transport infrastructure from Sichuan to the Port to become a larger global player? My sense is that we are still waiting for larger 3PLs to play a more central role in China logisitcs (read: logistics outside Jiangnan and Guangdong) before this can happen.

Hope all is well.

Chris

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