This article reported by Liu Jihua from Wide Shine Logistics Ltd., Co, during the Third Annual Conference of IFA on October 28, 2007. No copy unless permission.

1.           The statue quo of fireworks logistics

A firework, as a civil-used explosive, is a special dangerous commodity, thus the authorities have continuously tried to enhance and standardize the administration of its production and transportation. The transportation of export-oriented fireworks has involved itself with such departments as the Customs, the Inspection bureau and port, which administers according to their own understanding of their quite different regulations and rules. Therefore, in the whole process of fireworks logistics there lacks an efficient, authoritative and neutral institutional surveillance as well as market-recognized supervision means, which results in grave worry about the safety of the transportation of fireworks by the relevant port enterprises, shipping enterprises and the governmental administration departments.

As we can not be convinced that the safety in the process of transporting fireworks is controllable, the relevant enterprises and departments have taken a negative attitude towards it. For example, the world-famous shipping companies have reduced their shipping space for fireworks, raised their shipping prices greatly for fireworks, and at last, led to stop shipping fireworks. The port authorities have refused to let fireworks pass through while the relevant governmental departments have adopted severe inspection and checking, all of which lead to the blockage of the logistics channels for fireworks and the ever-rising cost for logistics. Before 2007, there are eight international shipping companies that transport fireworks in a large scale. They are MAERSK, HYADAI, APL, MOL, CHINA SHIPPING, HANJIN, K LINE and COSCO, now it has reduced to only four, that is, APL, MAERSK, CHINA SHIPPING and K LINE. Due to the change of processing ways, the ports that used to manage export of fireworks containers have been unstable and their handling capabilities have greatly weakened. The ports used to stay, storage and even load and unload containers, now it has turned to basically allow the whole container to pass through and immediate loading on to the ship but can not stay. The overall shipping price for export-oriented firework has jumped 90%. In 2005, the shipping price in peak season for Europe is about 3800/40HQ, while in 2007, it has risen to 7600/40HQ.

2.           requirement for the development of fireworks logistics

We must improve the safety of the transportation process, boost and enhance their confidence in the safety of the fireworks transportation, such as the governmental administrative authorities, port companies and international shipping companies.

2.1 control the safety of the starting point, that is, the encasement of containers, which is the basis of the logistics safety.

2.1.1 Ensure that the quality of the export-oriented fireworks for encasement meet the requirements of national safety standard and international dangerous commodity rules, which can be guaranteed mainly by self-discipline of the whole staff in the fireworks industry, meanwhile, the State Commodity Inspection Bureau should control the quality and not allow the illegal products enter into circulation.

2.1.2 Intensify the supervision of the whole encasement process, making sure that all fireworks in the containers are loaded according to the relevant international marine rules and meet the requirements of the China marine. If conditions allowed, the encasement should be done in a designated location and training for encasement personnel should be provided regularly, at the same time, arrange a marine inspector to supervise on spot.

2.1.3 Submit to the relevant administration departments and shipping companies in an honest way since the whole handling ways of logistics are different between different fireworks of different grades. The honestly submitted fireworks can be handled in a proper way thus avoid the potential dangers due to improper handling.

The results that may be caused by dishonest submission are: all shipping companies and administration departments process the whole fireworks by the highest dangerous grade.

It can not be realized to solely rely on the self-discipline of the factories and trading companies of this industry to control the safety of encasement, we also need an effective, authoritative and unbiased supervision institution, together with standardized managed storehouse or encasement spot.

2.2        optimize the transfer operation of fireworks logistics

2.2.1              Advocate the door-to-door service of containers and centralized encasement in the production factories and professional fireworks warehouse to avoid unnecessary damage and potential dangers in transportation.

2.2.2              Advocate to transact submission of commodity inspection, Customs and marine in the main production area, such as Liuyang City to avoid risks resulted from declaration and inspection in busy areas like in seaport.

2.2.3              Advocate the encasement of distribution at the origin place of production by the requirements of the retailers of the consuming countries to realize real door-to-door service and direct whole container goods to end users, which could greatly avoid second distribution and loading.

3.           Solution for the difficulties of fireworks transportation

     Professional fireworks international center should be established by "land port" standard in the fireworks production area, which directs itself as the aim of fireworks logistics development by "direct pass" to meet the new needs and higher standard service requirements.

 The international logistics center by "land port" should satisfy the following requirements:

    It should provide the five basic functional zones, such as warehouse storage zone, container piling zone, the Customs inspection zone, office zone and supporting information system and business trading zone.

3.1    The export management departments such as the commodity inspection bureau and the Customs will set their offices there to provide convenient services for export companies and the inspection site should be provided.

3.2         The center should be equipped with standard international container piling site and supporting hoisting devices. Meanwhile, there should be international shipping companies to provide international logistics service.

3.3    The center should provide warehouses that are exclusively used for transfer and storage of export-oriented products and be capable of assembling and distribution.

3.4    The center should have appropriate office zones and supporting information system.

3.5    The business trading zone should not be within the same area as the warehouse due to the potential danger of fireworks.