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 official 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.
Schenker spokesman Gelfo Kroeger added Monday that the company has always had the necessary valid licenses and that business was basically unaffected because marine shipping companies knew this, and chalked it up more or less as “business as usual in China.”
He said Schenker wouldn’t take legal action against Chinese authorities which could only make matters worse.
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 (agreeing with Mr. Kroger) 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
