18 minute read
LIJIANG
A Major Minority Destination
Located at the northwest corner of Yunnan province, Lijiang is famous for the well-preserved, primitive beauty of its landscape, the diverse traditions of the ethnic minorities who live there and a famous UNESCO Heritage Site – the Old Town of Lijiang. When Kublai Khan occupied Dali in the Song Dynasty, he led the whole battalion across Jinsha River and decided to dwell along the riverside. The river, known as Lijiang Bay at the time, became the origin of this community of thousands of people and kept thriving to become what was later known as the Old Town of Lijiang.
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The word ‘Lijiang’ bears an important message when explained in the local Naxi dialect. Translated as ‘gongben zhi,’ which means ‘the trade fair of grains,’ the phrase is not only a portrayal of a prosperous local trading scene, but it also indicates the importance of the city’s geographical location as a transportation hub along the old Silk Road.
Today, Lijiang continues to serve as an important place that connects Yunnan to Sichuan and Tibet, as it sits right at the junction of the YunnanGuizhou Plateau and Qinghai-Tibet Plateau. China’s first geographer, Xu Xiake, even noted the resemblance between the contour of Lijiang and an ink stone.
In recent decades, the city has experienced a boom in tourism. Thanks to its extremely high altitude – an intimidating 2,400 meters above sea level – Lijiang offers an unparalleled landscape that you can’t find anywhere else in China. In particular, the Jade Dragon Snow Mountain (Yulong Xueshan) attracts millions of tourists and extreme sports lovers from around the world each year.
Apart from exploring the great outdoors, there are also plenty of cultural activities to be enjoyed, as Lijiang is home to 12 different ethnic minorities who make up more than half of the city’s population. Among them, the Yi and Naxi people are the most prominent groups and have major influences in the city’s everyday life.
For those who are curious about life in the Song and Yuan dynasties, a visit to the Naxi community will take you right back into that time period, thanks to its well-preserved traditions and architecture, which are a rarity in China.
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Lijiang Sanyi Airport (LJG)
Just under 30 kilometers south of the city center, Lijiang Airport operates regional flights as well as routes from Beijing, Shanghai, Guangzhou and Shenzhen. A taxi from the airport to Lijiang Old Town costs around RMB80 depending on time of day. We should note that many visitors opt to fly into Kunming first, as the Lijiang Airport is located at an elevation of about 2,242 meters. If you do fly into Lijiang from a low-elevation area, you may want to begin taking altitude sickness medication ahead of time.
> Qihe Zhen, Lida Gong Lu 七何镇丽大公路 (+86 888 5173081)
Lijiang Railway Station
Lijiang’s only railway has long served as a link to neighboring Yunnan destinations, Dali and Kunming. A high-speed rail, opened in 2018, connects Lijiang to several other Yunnan destinations as well as reduced the commute time from nine hours to three hours. Second-class tickets range from RMB197-220, and offer a scenic view of the province along the route. A maglev railway will also reportedly be built in Yunnan, state media reported in February 2020, which would stretch 430 kilometers from Kunming to Lijiang.
> Shangji Village, Yulong Naxi Autonomous County 玉龙县城南口片区上吉
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Bus
Lijiang is fairly easy to travel to by bus with two coach stations: Local Transport Service Center Bus Station (Changshui Lu) and the Lijiang Express Bus Station (Xianggelila Jie). Both offer bus services to neighboring cities as well as popular tourist attractions like Lugu Lake and Tiger Leaping Gorge. Although the Local Transport Service Center Bus Station has more bus lines as well as ticket offices located all around the city, so we recommend checking this station out first.
Taxi
While Lijiang is a fun city to explore on foot, you may want to skip ahead to the sites on your checklist. Taxis are pretty convenient but can be a bit pricy for far destinations, so it’s best to bargain the fare beforehand. Taxi fares start at RMB7.
Bike
A bike is just what you need in case the town is overrun with tourists by the time you arrive. We recommend chatting with your hotel or hostel about bike rentals as well as local bike tours that take you out of the city center and into some of the nearby villages with gorgeous mountains views at your every turn.
Square Street
When it comes to shopping for local souvenirs and people watching, Square Street is the place to be. Located deep within Lijiang Old Town, Square Street goes back centuries as a place where merchants during the Ming Dynasty would gather, bringing their own distinct cultures. There are countless souvenir shops selling various kinds of handicrafts and garments, many of which are locally owned businesses. Most of the souvenirs you’ll find around Square Street are designed by the Naxi People, from elegant craftworks to colorful knitted shawls. Be sure to catch some of the traditional dance performances throughout the day – although a bit gimmicky, there’s plenty of smiles going around.
> Sifangjie, Lijiang Old Town 丽江市古城区四方街
Bu Nong Ling Shops
One of the traditional crafts of the Naxi people, Bunong Bells are a popular purchase when traveling in Lijiang. Known as the lucky bell of the Chinese minority group, these bells were once used as a sacrificial utensil, but nowadays are more of a common souvenir. You’ll find local designers selling their own bell creations just east of the big stone bridge in Lijiang’s Old Town. Bunong Bells generally cost RMB30 and up.
> East of big stone bridge of Lijiang Old town 丽江大石桥东边
Yulong Snow Mountain (Jade Dragon Snow Mountain)
Arguably the area’s most famous attraction, Yulong Snow Mountain is a popular day trip for tourists visiting Lijiang. The mountain forms one side of the legendary Tiger Leaping Gorge (which is less than two hours away from town by car) and its peak is blanketed in snow year-round. Visitors can take a cable-car to the mountain’s Glacier Park, which sits at over 4,500 meters and offers sweeping views on a clear day (although you won’t see much if the fog rolls in). From the cable car station, intrepid travelers can hike even higher up the mountain via a boardwalk and series of steep staircases. Of note: Portable oxygen cannisters and winter jackets are generally provided to those visiting the mountain as part of a tour. After descending from the peak, be sure to stop off at Blue Moon Lake to snap some scenic photos of the terraced pools of freezing, vivid-blue glacier water.
Baisha Old Town
This historic town center is 10 kilometers north of Lijiang and faces Yulong Mountain to the north and Longquan River to the south. Thanks to its prime location and good fengshui, Baisha was once the capital of the Naxi community, serving as the political and economic center of Lijiang. It was also the home of the Mu family – one of the three most influential feudal lords of the area. The center of Baisha Old Town consists of a large square and clusters of architecture characteristic of the Naxi people. The area is packed full of shops selling traditional art, tourist trinkets and locally produced snacks, as well as bars, restaurants and cafes.
Zhiyun Temple
Located 18 kilometers to the southwest of Lijiang Old Town, Zhiyun Temple was originally built in 1727 during the Qing Dynasty. Considered one of the five major temples in Lijiang, it housed 13 monasteries at one point, of which only six remain intact. Today, the temple maintains a nearby farm that produces local specialties like apples and white peaches. The origin of the temple is an ancient legend, wherein a man from Shuhe who studied Buddhism in Tibet returned home and was advised by a mysterious wise man to build a temple under a certain piece of cloud. Thus, Zhiyun Temple, which means the temple ‘pointing to the cloud,’ was built at its current address. `
Lashi Hai
Lashi Hai sits about 10 kilometers west of Lijiang Old Town. Known as the first nature reserve in Yunnan, Lashi translates to ‘new wasted dam’ in the local dialect. In the 1980s, a dam was built to prevent drastic, cyclical changes to water level. This process converted Lashi Hai into a plateau wetland, which is a natural habitat for migratory birds. Although the area enjoys mild weather all year round, the best season to visit is the winter, during the height of the bird migration between December and March. Visitors can rent a boat to make the most of the natural landscape, or pick a horse to tour around the lake area.
Waxing Waves of Western Want
Unpacking the Sea Can Traffic Jam and the Cost of Rising Consumption
By Joshua Cawthorpe
On March 23, 2021, the eyes of the world were fixed on the Ever Given. The 400-meter-long cargo ship had slammed into the sandy banks of the Suez Canal, a crucial artery of ocean-faring trade. In the week that followed, as hundreds of vessels lined up to traverse the channel, onlookers became acutely aware of how fragile the global supply chain really is.
Fast forward half a year and consumers in the West are being warned that many popular items will be in short supply come Christmas time. This month, we talk to merchants making a living in China to explore the apparent unravelling of an otherwise invisible yet indispensable industry.
Ports on Pause
The Ever Given is estimated to have resulted in nearly USD10 billion dollars in lost revenue per day, according to Forbes. By the following week, the ship was immortalized in internet memes as a symbol of both hopelessness and hilarity. Nonetheless, as vessels began filing through the narrow thoroughfare to deliver their goods, international cargo shipping once again faded away from the public discussion.
In late May, global delays were forecasted as one of the world’s busiest ports went into lockdown. An outbreak among workers at Yantian Port, normally capable of loading 20,000 standard containers per day, forced a temporary suspension of the port’s operation. It reopened soon after but with reduced capacity and strict COVID-19 prevention protocols. By June 17, CNN reported that upwards of 50 freight liners were parked at sea awaiting their turn at the docks.
On August 10, an employee tested positive at China’s NingboZhoushan marine hub, the third busiest port in the world. The Meishan terminal, which handles a quarter of the cargo moving through the port, was subsequently closed for two weeks. By diverting awaiting vessels to other terminals and nearby ports, Global Times asserted that Ningbo operators maintained a near-normal throughput compared to July. However, nearly a week before the terminal resumed operation, 80 ships were still waiting to unload and replenish at Ningbo.
The pandemic hit supply chains hard with added security measures and outbreaks wreaking havoc among dockworkers, heavy haul truckers, warehouses and factories. Yet could this be all it took to bring the supply chain to its knees?
Sheltering from the pandemic, a more innocuous problem was brewing : skyrocketing demand.
Astaggering 80 percent of all goods are transported by sea, according to Statista. Ask anyone in the West to look around the room and almost everything nearby will have been aboard a cargo ship.
Benoit de Mallmann is the general manager of an export-only shower enclosure factory in Zhongshan, Guangdong province. His business is entirely dependent on the sea for delivery and is directly impacted by port closures and delays. However, he describes the paradoxical effect of the pandemic for manufacturers within China’s borders.
“Since the pandemic began, the business has exploded. This year to date we have seen between 60 to 70% growth.” The reason is because the consumers cannot travel due to COVID-19 restrictions so they spend their money on the renovation of their kitchens and bathrooms.”
The hurdle, he tells That’s, is a lack of shipping containers. “We are accumulating a massive amount of stock and we don’t want to hinder production. We had to expand by building new warehouses and then rent additional warehouses.”
De Mallmann echoes the plight of manufacturers worldwide as products pile up, waiting to be loaded, while full containers sit on delayed ships and in ports.
“The container situation is very unpredictable,” he says. “You can have zero containers available for
The Factory Floor
several days and then the following week you will have fifty containers. So we need to be ready to load and ship all of our goods as soon as the containers come in.”
Not only are containers unavailable but they come at an unprecedented cost. Drewry Shipping Consultants shows the world container Index price hovering around USD10,000 — freight rates not included. Prices have soared 281% higher than the autumn of 2020. The five-year average for a 40ft container is USD2,530. In the final week of August, Container xChange showed available units at Yantian Port selling for over USD15,000.
According to South China Morning Post, 96% of shipping containers are made in China and manufacturers are having a booming year. One major player, China International Marine Containers Group, produced 1.1 million standard dry containers in the first half of 2021. In doubling the output compared to the previous year, CIMC reported a 1,739% increase in net profits as surging demand dragged prices higher and higher.
Free on board, or FOB, is a shipping industry term which means that the buyer is liable for the goods once they are shipped. De Mallmann’s prices are FOB so the container cost is absorbed by the customer. In order to stay competitive, he explains, the company has been focused on optimizing the way container space is used. “We need to load more and decrease the freight cost per unit for the customer. I would say this is one positive aspect because it forces us to think a bit greener. We need to use less cardboard and styrofoam so we ultimately consume less material.”
Freight charges have risen alongside container prices and the cost of raw materials. The result is mind-bending quotes from exporters with some transactions being simply abandoned. Sergio Jaimes is a Colombian export agent who lives with his family in Guangzhou. Since 2011, he has been filling orders for everything from sneakers to phone cases to automobile parts and shipping them to his clients throughout Central and South America.
In 2018 and 2019, Jaimes was a loading up to 16 containers a year. This month he will send the second shipment of 2021. In a coffee
shop on a windy Sunday afternoon, Jaimes pulls up old WeChat messages to show us prices from a bygone time. October 22, 2019, a container leaving Shenzhen and bound for Buenaventura Port is purchased for USD2100. That same route was quoted at USD13,500 on September 6, 2021. Another shipment to Chile came in at USD16,500 with neither price including the export fees or delivery charges from factory to FOB.
“I personally lost several opportunities because of this situation,” Jaimes laments. “After you quote the price and explain the delays, many buyers cancel the transaction.”
Another Colombian, Lorena Garzon, has a trading company in Yiwu, Zhejiang province. Like Jaimes, she sources products, inspects shipments, arranges shipping and processes payment for importers in the West. On top of high costs and container shortages, her customers have been embattled by production delays.
In 2019, Garzon filled and sent over 40 containers. To name but a few of the products that she handles, she lists stationery, party supplies, household goods, cosmetics, jewelry and raw
materials for handbags. She tells That’s, “we’ve had production delays with plastic [products] or party balloons because some of the chemicals that make them come from other countries.”
“Due to the lack of production materials, the delivery time to the factory is already delayed. The shortage of containers then adds a lot more time. As a result, some customers no longer purchase in China. Instead they choose to purchase locally. There are many factories in Panama and a lot of the products are similar to those that importers source in China. The price is higher but the delivery time is much faster.”
“Household products and toys with circuit board materials are also causing problems,” adds Garzon, unsurprisingly. A Trump-era protectionist policy limited the purchase of certain technologies from Chinese firms. According to Reuters, the former president’s memorandum on technology transfers between China and the US is being partially blamed for the global chip shortage. Toyota announced in mid-October that it had slashed production by 40% due to the inability to acquire
microchips, as per the New York Times.
China’s rebounding domestic economy and increased demand from factories has led to a 13% jump in the demand for energy. Reuters reports that, in the first eight months of the year, coal-fired power stations rose to the challenge and met the growing need with an extra 465 trillion Watt Hours (TWh). To put it in perspective, the Scotland’s government website states that wind power provided 23.2 TWh in 2019 — enough electricity to power every home in the nation for more than two and a half years.
Despite ambitious carbon neutrality goals, top officials instructed coal mines to increase production and urged some recently shuttered mines to reopen, as per South China Morning Post. In Mid August, the National Development and Reform Commission published a ranked list of all 31 provinces and regions, highlighting that seven of them had failed to meet their energy saving targets. The NDRC then instructed those provinces, including Guangdong and Jiangsu, to take measures to ensure that the targets were met by year’s end. The result has been rolling blackouts. Local officials targeted factories and periodically cut power to industrial areas, further exacerbating supply chain problems ahead of the busy Christmas season. Far from the coal mines of Inner Mongolia, De Mallmann’s factory had to embrace the city’s new energy austerity.
“In the last fifteen days of September, we had four days a week without electricity. This affected the entire industrial area of Zhongshan. I have a friend who is a supplier in Zhuhai and they were going six or seven days a week without electricity while other areas were one or two days only. We organized some night shifts and we still managed to reach our production goal but it was an emergency situation.”
Coal for Christmas
Pinstripe Pirates
In contrast to the headaches and heartaches for merchants and consumers, the shipping industry itself is rolling in dough. The world’s biggest shipping company, AP Moller-Maersk A/S, projected a modest USD4.5 billion in profits at the start of 2021. However, by exploiting the jump in demand for consumer goods, the Danish behemoth now expects to surpass USD14 billion, according to Bloomberg.
Chinese state-owned COSCO shipping saw an 88 percent year on year rise in revenue for the first half of 2021. The company moved 13.84 million TEUs (twenty-foot equivalent units) during that time, a meagre 16.8 percent increase from last year, Nikkei reports. The sheer necessity of the industry has buyers and sellers in a chokehold.
Critics of the cargo ship business suggest that now is the time to step back, shop local and decarbonize the shipping industry. Unfortunately, this is much easier said than done. One Network Express, headquartered in both Tokyo and Singapore, told the Economist that a 10 percent speed reduction could bring carbon emissions down 15 percent. But the current situation shows no signs of slowing down.
The International Maritime Organization is a UN body tasked with regulating the industry. In September, the International Chamber of Shipping submitted a proposal to the IMO outlining a research and development fund which would levy USD2 on every metric ton of marine fuel consumed. The purpose of the fund, awaiting approval at an IMO meeting this November, would be to explore viable alternative fuel solutions.
The industry is smashing profit records in every consecutive quarter and consumers in the West are being warned to start Christmas shopping early. Cargo ships are the backbone of the globalized economy and governments can’t simply strong-arm the prices back down to pre-COVID levels. When regulators discuss the current state of shipping, will they acknowledge the concerns of importers and exporters? Might they discuss food security in developing nations? Do they have the power to pressure the industry to self-regulate?
For now, we wait, like five thousand container ships on the water as we read, and hope for smooth seas and clear skies ahead.
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