Sino-Global extends to Brazil

   Sino-Global Shipping America, a New York-based provider of shipping agency services operating primarily in China , said Tuesday that it had signed a memorandum of understanding with the Wilson, Sons Shipping Agency, subsidiary of Wilson, Sons, a public company listed on the BM&F Bovespa stock exchange in Brazil.
    Under the terms of the MOU, Sino-Global will recommend Wilson, Sons to act as an agent to attend Sino-Global clients’ vessels in Brazil and Wilson, Sons will recommend Sino-Global to act as its agent in China for its clients’ vessels loading in Brazil and discharging in China.
    “This reciprocal appointment agreement follows similar agreements with Monson Agencies in Australia , Forbes & Company in India, COSCO Container Shipping Agency in China , and King & Sons in South Africa,” said Cao Lei, Sino-Global’s chief executive officer.
    “It is a key component in Sino-Global’s strategic plan to extend its services worldwide by linking with leading shipping agencies in geographically diverse shipping ports. We are very pleased to establish a partnership with Wilson, Sons, the largest shipping agency in Brazil , and we anticipate that the various business opportunities that this opens to both companies could generate meaningful incremental revenue and earnings. Sino-Global will continue to pursue other such reciprocal business agreements in the future,” he added.
    Sino-Global said last week that it had a net loss of $625,357 in the three months ending Sept. 30, its first fiscal quarter, compared to net loss of $157,920 in the same 2010 period.
    The company had revenues of $8.59 million in the three months ending Sept. 30, 4.8 percent more than the $8.2 million recorded in the fiscal quarter ended Sept. 30, 2010.
    Sino-Global said revenue growth in the quarter slowed appreciably as a result of the China government financing policies that resulted in lower imports of iron ore into China. By intensive marketing activities Sino-Global was able to show a modest increase in revenue of 4.8 percent in the first fiscal quarter. Sino-Global was able to partially mitigate US dollar devaluation in the most recent quarterly period by successfully negotiating an approximately 5 percent agency fee increase with Beijing Shourong in March 2011.
    Revenues from Sino-Global’s existing major client, Beijing Shourong Forwarding Limited was 51 percent of total revenues in the first fiscal quarter of 2012 compared to 67 percent in the year prior quarter. To offset the expected continued devaluation of the US dollar against the Chinese RMB, Sino Global said it was seeking to continue to grow overseas revenues that are paid in local currencies.
    Sino-Global continues to focus on expanding its global activities and on July 5, 2011 announced a strategic cooperative agreement with COSCO Container Shipping Agency Co. Limited, one of the largest state-owned shipping agents in China, that permits Sino-Global to use COSCO’s name to market for business in China and overseas.