Research On Chartering Control During International Trade For Chinese Grain Trader

Economic development, urbanization and changing diet habit have rapidly increased the demand for soybean and soybean meal in China. The gap between soybean demand and domestic supply has enlarged for the limitation of agricultural resources. Import soybean has been playing an important role in domestic demand of China. Multinational Corporations have monopolized soybean resources, and gain the competitive advantage of global supply chain. They took part in every step in supply chain: soybean purchase and storage, harbor facilities and International logistics, which threaten domestic crushing plant and international soybean supply. COFCO took the first step of strategy of global grain supply chain through cross-border mergers and acquisitions. It achieves the competitive advantage of material cost and should pay attention to International logistics at the same time. It can optimize the soybean resource collocation worldwide. Shipping is the core of international logistics, and the charting control during the international trade for Chinese grain trader was the main topic of this paper as well. This paper indicated construction of global soybean supply chain with theory of competitive edge and industrial economy for Chinese grain trader. There are several advantages if soybean buyer takes charge of chartering during the international soybean trading practice: 1) the control of operation risk through contract terms and participation of trade flow, 2) teamwork advantage and close cooperation between chartering division and trading division, 3) reduction of trading execution cost and generation of market-oriented profit. It proved the significance of chartering control for grain trader carrying out international trade by integrating trade theory and soybean trading practice, and also point out the development direction for chartering division whom devote itself to improving professional service in the future.