Shipping out of China   Leave a comment

Interesting phone conversation with a Chinese based ship forwarder today. We are looking to ship a Caterpillar brand bulldozer from China to Japan. In conversation with the Shanghai forwarder, he says that there have been a lot of Cat brand equipment that has been shipping from Shanghai to Yokohama and that the ship owners charge a hire rate for Cat brand machines than other brand machines because of the volume they are shipping.

Firstly, those Cat machines are made in China. The final destination is not Japan because China built Cat machines would not be acceptable to the Japan market. The machines must be going to Yokohama to be transshipped to other destinations where Cat is selling Cat China built machines  (SE Asia perhaps, as one example)

Secondly, I find it interesting that the ship owners charge more for higher volume. The general idea is that when you ship more volume, you get a lower rate because of the economies of scale. But not in China. If this is indeed true (and I have every reason to believe it is) it is a case of, lets make the foreigner pay more money.

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Posted February 23, 2011 by chinacetrader in Caterpillar, Shipping

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