IN a move to beat rapidly increasing costs and border and container freight station (CFS) congestion in Hong Kong, Kuehne and Nagel is offering to consolidate cargo in southern China.
For clients importing goods from southern China, the company is offering three consolidation points in Guangdong and encouraging customers to change trading terms from FOB (free on board) Hong Kong to FOB Yantian, Huangpu or Shenzhen.
Yantian has direct shipping links with the United States and Europe, while cargoes from Huangpu can be shipped by barge, to avoid traffic snarls from the mainland into Hong Kong.
'While cargo from Shenzhen still has to use the road network, the containers can be transported under Customs bond and consequently save considerable time with border clearance procedures, spokesman Anthony Philipps said.
Savings for the firm's customers on trucking and CFS handling were substantial, he said, with an average 25 to 35 per cent reduction by using a Chinese CFS instead of buying FOB Hong Kong.
He said savings were possible even after taking into account additional sea freight charges from Chinese ports.
