Schenker China Cargo Uproar

     FlyingTypers has obtained an official document circulated yesterday by Ministry of Communications (MOC) in China to the cargo community charging (BAX) Global International Limited (Schenker China Ltd.), of operating with a falsified NVOCC license.
     MOC said that as of Thursday August 9 all shipping lines have been ordered to stop working with Schenker (no sales contract, no booking, no bill of lading etc.).
     China authorities reportedly are examining the situation and could levy fines and other punishment in the matter.
     In any event, according to MOC, the case has been passed to the local police authority in China with oversight for enforcement.
     “The shutdown could have a big impact,” a source said.
     “Schenker is a huge player in the market and if its inability to move ocean cargo is sustained some shipments could move over to air cargo.”
     Here is a Google translation of the MOC document:
     “Investigation (underway) of (BAX) Global International Freight Forwarders (China) Limited (Registration Shanghai, Schenker China Ltd.) Ningbo, Xiamen, Guangzhou branches, for the lack of NVOCC license, and forged NVOCC license.
     “Illegal conduct NVOCC operations, serious violations of the People’s Republic of China international maritime regulations, rules and disrupting international shipping market order.
     “Now ordered (BAX) Global International Freight Forwarders (China) Ltd., and their respective subsidiaries to immediately stop illegal NVOCC operations.
     “International shipping companies available to the company and its subsidiaries entered into an agreement tariff should not receive their goods or containers.”
     Repeated calls to Schenker's headquarters in Essen, Germany did not yield a cofirmation of the reports surfacing in China, nor any comment regarding the matter.
     A person answering the phones said no spokesmen were available, and that none could be reached at nearly 9 p.m.Friday evening August 10.
     Emails sent to the company requesting comment were also unanswered.
     Schenker which is a unit of Deutsche Bahn, the German national rail service, saw revenues in Asia almost triple in 2006, compared to 2005, to over EUR2.1 billion, according to a Schenker Web page. The company also more than doubled the number of employees in Asia in 2006 to nearly 11,000.
Geoffrey