Pursuant to the Project Agreements, Sino-Global will continue its efforts with Sinotrans Guangxi and COSFRE Beijing to convert commodity in-bulk shipments to containerization of the commodities shipped between China and the United States. Containerization offers several benefits over bulk shipments which include increased speed and flexibility in the commodities transported as well as the ongoing rise in commodity prices and demand have resulted in the switch to containerization by producers seeking additional value over commodity in-bulk shipments.
Also, pursuant to the Project Agreements, Sino-Global will manage all ground logistics and custom declaration services in the U.S. for Sinotrans Guangxi and COSFRE Beijing. Currently, the commodities listed in the Project Agreements primarily include sulfur, soybean and petroleum jelly. As of the date of this release, COSFRE Beijing in partnership with Sino-Global, is now loading in total approximately 300 metric tons of sulfur in twenty-foot containers in Long Beach, California.
Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated, “We are very excited to extend our Project Agreements with Sinotrans Guangxi and COSFRE Beijing. Containerization has key advantages over bulk shipments, which include containers being easily moved from one mode of transportation to another. We believe there is an opportunity that has been created by an imbalance in trans-pacific trade from China that has yet to be captured by the North American sector, particularly given the ongoing increase in Chinese demand. These Project Agreements allow the Company to capitalize on that opportunity and officially mark the continuance of its strategic partnerships with two leading China state-owned logistics and transportation companies, making Sino-Global a crucial partner in their U.S.-related business while further establishing our foothold in the U.S. logistics market, as a global logistics services provider.”
Sinotrans Limited was incorporated in November 2002 and listed on the Hong Kong Stock Exchange the following year. Sinotrans Limited is and the company’s main business is focused on integrating ocean freight, air freight, road and rail transport, international express, shipping agency, warehousing and distribution, terminal services and others to provide end-to-end supply chain solutions and one-stop services for its customers.
COSFRE Beijing, a subsidiary of China COSCO Holdings Company Limited, specializes in international freight forwarding, shipping agency and full supply-chain services.
