Freight forwarder and logistics operator T3EX Global Holdings Corp (台驊國際投資控股) yesterday gave a reserved outlook on its primary market China, as Beijing continues to combat pollution.
Beijing has been cracking down on the worst air pollution offenders ahead of hosting a summit meeting with the BRICS group of five major emerging economies, as well as the Chinese Communist Party congress, the company said.
As a result, swaths of offending small to medium-sized factories have been ordered to shut down, which has led to smaller demand for export cargo shipments due to diminished production output, as shipping prices tumbled 5.8 percent sequentially last month.
Concerns about oversupply were rekindled as new vessels that can carry 20-foot equivalent units have been launched, with supply overtaking demand.
The picture is brighter for air freight, which is benefitting from the year-end holiday seasons in Europe, the US and China, with air cargo prices last month rising 6.5 percent sequentially and 20.7 percent annually.
Air cargo prices are expected to continue to soar in the final quarter of this year, due to record shipping volumes at China’s online retailers, as well as the electronics and technology sector supply chain.
The company, which is one of Alibaba Group Holding Ltd’s (阿里巴巴) logistic partners, said that it is seeking to partner with other platforms for door-to-door deliveries.
The company reported that sales last month rose 10.75 percent annually to NT$904.17 million (US$29.9 million), while sales during the first nine months came to NT$7.82 billion — 11.17 percent higher than a year ago.
Sales contributions from China and Hong Kong also rose 9.81 percent annually to NT$5.88 billion, representing 75.15 percent of its total sales in the first nine months.
Of the company’s total sales, ocean freight sales rose 12.31 percent annually to NT$4.52 billion, representing 57.83 percent of sales during the same period, while air cargo sales rose 17.36 percent annually to NT$2.1 billion, accounting for 26.96 percent of total revenue.
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