Schenker Nixes China Cargo Flap

     German cargo giant Schenker, a unit of the German national rail service Deutsche Bahn, responded Monday to the Chinese government's claims that Schenker has been operating without the necessary licenses or that the licenses were forged, as baseless.
     On Friday August 10 (updated Sunday August 12) FlyingTypers carried an exclusive story 'Schenker China Cargo Uproar,' revealing a document released in China by the Ministry of Commerce that stated that an offical investigation was underway of BAX Global International Limited, Schenker China Limited, of operating with a falsified Non Vessel Operating Common Carrier (NVOCC) license.
     Such claims, or the shutdown of Shenker operations in the region could have had huge effects on the cargo industry worldwide.
     Schenker released the following statement on the matter Monday morning, August 13:
     "Schenker AG is a registered NVOCC in China under a confirmed listing and is shown at the official website accordingly. In the past further branches have been registered under Schenker China Ltd. Unfortunately during the registration a discrepancy occurred and we are in contact with all respective parties to clarify the matter.
     "In the meantime all the business of all our customers will be effected in a proper and compliant way, and shipments will be executed timely and orderly as beforehand."
     Schenker 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.
     Nick Coverdale, Managing Director, Piff Shipping Ltd., Hong Kong sees some useful purpose served, as the matter of operating above and below the line is made public.
     But the transportation specialist also emphasized earlier that the Schenker situation may just be one more example of “business as usual” in China.
     “There are other companies that do not comply with Article 27 of the China Ministry Of Commerce (MOC) regulations.”
     Expanding further on the role of NVOCC in China today, Nick Coverdale notes that the Schenker situation might just be the tip of an iceberg that is much bigger and more troublesome than many outside of China had imagined
     “Conditions here are similar to the FMC when exporting from USA, in as much as if you appoint an agent in China to issue your bill, he must be in his own right an NVO.
     “Things are heating up in China.
     “This situation is not going to go away.
     “I look forward to reading more on this subject in FlyingTypers as it is a very important issue in the trade that needs press, so people worldwide can understand what is going on.”
Geoffrey