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International freight forwarding industry to break through

Introduction: China's foreign trade high-growth era of the new economy has been the norm in the past, closely linked to the international freight forwarding industry is showing multiple features, the crisis in the organic.


Under the new economic normality China's foreign trade high-growth era has passed, closely linked to the international freight forwarding industry is showing multiple features, the crisis in the organic.

Recently, China's foreign trade growth target for this year down from 7.5% last year to 6%, attracted much attention.

Previously, China has failed to complete two consecutive years of foreign trade growth target, in 2012 annual foreign trade growth rate of only 6.2%, well below the 10% target set at the beginning of the year; 2013 was 7.6%, still less than 8 % target. From the General Administration of Customs announced in November last year, foreign trade data before the completion of the situation, to complete the annual target already hopeless, this will be the third consecutive year, it failed to complete the task. This year the international economic environment is more complex, China's foreign trade situation is very grim.

Foreign downturn, the impact on China's international freight forwarding industry is most significant. Shanghai International Freight Forwarders Association Secretary-General Li Linhai in an interview with reporters said, its more than 600 member companies of the business volume and net profit decline has become a common phenomenon, the Chinese international freight forwarding industry growth in the good old days are gone high, entered a relatively stable period.

Market need Specification

According to the Secretary-General of China International Freight Forwarders Association Liuxue De introduced since the reform and opening up, Chinese international freight forwarding industry has developed rapidly. Overall, however, compared with developed countries, there is a smaller, decentralized services, business model is relatively backward, professional service capacity is weak, the lack of industry innovation and homogenization of serious competition problems.

Vice President of China World Cargo Alliance Wang Damin said foreign logistics market started earlier, a higher degree of concentration, have formed the backbone of large enterprises dominate the market. The Chinese logistics market is widely dispersed, the former 50 logistics enterprises accounted for less than 15% market share, lack of backbone of logistics enterprises, the situation is also very similar to the freight forwarding industry.

Recently, reporters in collecting data found a site for the industry chaos current Chinese international freight forwarding industry has done a detailed summary. First, the industry no standards. Some netizens "Tucao" no information and service standards, such as booking business, shipping companies each have their own electronic data exchange format, the high cost of freight forwarding companies and their docking. Second, the information opaque. "Islands of information" Too many ports each port, customs, yards, shipping companies, etc., do not provide external interfaces, a lot of valuable information can not be used by the relevant companies. Third, the industry unspoken rules hinder development. Withdrawal commission, rebates as a result of a number of corruption and unfair competition, many resource owners reluctant to allow transparency of information, impede the healthy development of the industry. Fourth, a large freight forwarding companies to advance funds as the industry development bottleneck. Freight forwarding companies are asset-light business, it is difficult to credit from banks and other financial institutions to the funds. Fifth, the shipping industry is not shaping financial products matched to compete at the low end stage, blindly compete on price and service is essentially ignored. In addition, as the impact of trade, tax reform and other policies, to take market share FOB shipping more and more, local freight forwarding business environment has become increasingly difficult to survive.

Internet users voice hope that the Government speed up the development of industry standards and to promote, especially information standards; accelerate the application of information disclosure and interfaces; increase industry punish unfair competition, and create a fair and equitable trade environment; vigorously promote the process of the Internet industry to support a group of outstanding corporate landing industry network platform, accelerate the development of the industry; establish a sound credit system industry, and can dock with the bank credit system, the use of industry data and documentation to solve the problem of financing; the development of industry standards of service, good service monitoring and complaint handling, improve service quality; the regulation of foreign trade and tax policies, and encourage the CIF shipping market, has the potential to support a number of large freight forwarding business.

In addition, analysts pointed out that Chinese international freight forwarding industry barriers to entry are not high, personnel quality varies greatly, the need to strengthen the quality of personnel training and the integrity of the system.

Take electricity supplier Express

With the rapid development of the logistics of electronic business, especially in the sea last year, Alibaba Group and cooperation, and the latter in the United States, so a large number of Chinese small freight forwarding companies nervous, electricity supplier shipping directly to this marketing channel sink the way to the client terminal, declaring the previous freight forwarding companies to eat the difference in the end profit model. While the medium-sized freight forwarding companies, business use the Internet way of thinking is the general trend.

online Cargo Alliance of Trade sponsors Zhang Zi Jing analysis to reporters, electricity providers now forwarding of all aspects of the conditions are ripe, bandwidth and computer hardware and software not only widely available and low purchase cost, PC + smart phone is the standard of life of young people to work, Young likes cool no matter what, 10 years, 10 percent of the electricity supplier freight forwarding market share easily. Freight forwarding companies must change the existing business model, access to the Internet, and multi-channel multi-terminal fusion to adapt to future trends.

Owing to the high cost of investment in information technology, freight forwarding companies mostly remain in the traditional mode of operation, there is no established system of business information platform to enable business information scattered around, freight forwarding companies can only make decisions based on impression. Next, after the electricity supplier platform operations, including upstream and downstream business customers and internal processes are standardized to electronic business platform, each link can be traced back to the root of the problem appears doubtful, through integrated data each side can accurately determine customer dynamic, internal existing problems.

According to the survey, in addition to the owner as the leading business platform shipowners logistics department, as well as third-party logistics business platform Some freight lines. Some of the strength of freight forwarding business, have a way of thinking of the Internet or to a third-party e-commerce platform to build international logistics targeted, open and integrated logistics industry resources, and create the "Internet + data + finance" as a new model; or freight forwarding companies to build their own O2O platform, providing customers with convenient and efficient online and offline under the dual experience of serving. These self-developed software on the customer's mobile phone and computers, most have ask for a quotation, booking, shipment, cargo status and other functions aimed at strengthening communication skills shipowners, shippers, freight forwarding between, improve service experience degrees.

Insiders pointed out that the future may also occur by the end of the control of foreign trade enterprises initiated logistics electronic business platform, which has extensive trade orders resources, control of source stream; or co-sponsored by the Port Authority of logistics electronic business platform, integrated dock, Inland, shipping, freight forwarding resources; it may be co-sponsored by the Small and Medium business platform logistics freight forwarding business, the integration of the price of its subdivision routes, accommodation, service resources. Then the entire freight forwarding industry is entirely Internet-based, national marketing, everyone is media, business management flat, inter-firm interaction become the norm, marketing and services exist. International freight forwarding industry in the impact of the Internet revolution may indeed exist, participation in the Internet giant to make the original impossible becomes possible, pregnant with enormous opportunities. Although there is no success stories, but the shipping business platform mode once the experiment is successful, will be quickly copied to the electricity supplier of the movement in other non-standard logistics products.

Ningbo freight forwarding Hao Ge told reporters talking about the new changes in the future when the international freight forwarding industry believes that the logistics business platform will be a number of utmost pattern, some freight forwarding companies will be affected, in particular the concept of backward, poor risk awareness freight forwarding companies will be eliminated ; sales of weakening the role of the freight forwarding business, customer service gradually replac its position; industry merger integration cases will increase; as against larger competitors, small and medium sized freight forwarding companies hold together for warmth is a new bright spot, eight Chinese port has more freight alliance appeared League increasingly prominent role.

Li Linhai said that the electricity supplier for all industries in the event of a major change, as the Internet to traditional freight forwarding, first as a more efficient tool to eliminate backward tool, and secondly also brought new thinking, thinking that is the Internet. Internet freight forwarding industry will return to nature, the reconstruction freight forwarding industry ecosystem. Freight forwarding business to the flow, the use of new technology should be based on the supply chain, to provide customers with more value-added services, in order to truly improve their core competitiveness.

Foreign enterprises snatch "cake"

Ministry of Commerce recently issued the "Guiding Opinions on Accelerating the healthy development of international freight forwarding logistics industry" should be made to improve the business management system, and guide industry "transfer mode, and promote transformation"; to encourage enterprises to "go out" to guide relevant enterprises to integrate resources participate in international competition; to innovative business model, open up new markets, improve industry profitability and market competitiveness.

"In the international freight forwarding industry in this market, you do not take the initiative to 'go' grab 'cake', it can only be faced with no rice straw situation. China's freight forwarding companies must take the initiative to 'go' in the international freight forwarding giants have vied for the Chinese market Under the background of China's freight forwarding companies 'going out' more pressing needs. "Liu Xuede representation.

Shao Jing, general manager of Shanghai Hua Wei Logistics Ltd. believes that the strength of the freight forwarding companies to accelerate the pace of opening up overseas markets, can not stick to the Chinese market to foreign operators passive acceptance of immigrants fighting for. She said that currently the freight forwarding business in accordance with the scale of strength dissimilar to selec different "going out" path: Large freight forwarding companies and financial advantages are obvious talent, the ability to direct distribution in foreign countries; for not fully equipped with talent and capital advantages of medium-sized freight forwarding companies and words, can project around outside the Chinese foreign investors to provide freight forwarding services.
The industry believes that China's freight forwarding enterprises "going out" has become a trend, but it can not form scale and enhance the international competitiveness of China's freight forwarding business also requires a lengthy process. Chinese freight forwarding companies have not formed to support the global supply chain, the lack of mechanisms to protect, which also contains the investment risk of changes in personnel.

Prospects worth the wait
Liuxue De pointed out that although the risk factors of economic development at home and abroad last year, are still outstanding, but the momentum of economic recovery tends to improve a lot of bright spots, favorable freight forwarding industry.
from the international situation, the WTO predicted global trade in goods last year, an increase of 4.7% over the 2013 growth rate more than doubled, with exports of developing countries increased by 6.4% and imports grew by 6.1%, the economy tends to improve recovery.
From the Chinese situation, last year China's foreign trade import and export value remained sustained growth, particularly in the implementation of foreign trade "structural adjustment, to the way" and a series of measures, beginning to show positive results, export cargo after two years of negative growth has been positive It shows that China's foreign trade, especially exports more solid foundation for development.
Last year, put forward on behalf of the characteristics of the new economy "along the way", "free trade area", "cross-border electricity supplier" and other strategies, will form a new economic dynamism. "Logistics and long-term planning" introduced, the National Tax Administration on the international freight forwarding "Camp changed by" 42 announcements of steady growth, promote development, stimulate the freight forwarding market dynamics and endogenous dynamics, and create a favorable environment for the development will have a positive meaning. With this series of policy implementation and improvement, through the new normal period of adjustment practice, China's future prospects will be even more international freight forwarding industry can be expected.

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