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How about the freight forwarding industry?

by:VIPUTRANS     2020-02-25
Freight forwarding provides a lot of convenience for many shippers and carriers. Freight forwarding is an emerging industry in China. With the development of the global economy, especially the development of cross-border e-commerce, it provides a great opportunity for freight forwarding. But what about the freight forwarding industry? What opportunities and crises are there? The current crisis of the freight forwarding industry 1. Poor overall quality and limited ideology The freight forwarding industry has low entry barriers, low general culture, poor overall quality, and lack of professionals who are proficient in related businesses. 2. Low integrity and no industry credit mechanism The lack of industry supervision in China's freight forwarding has led to a lack of integrity in the freight forwarding industry. Since there is no industry credit mechanism, accidents frequently occur in the business operation, document issuance, and fee payment, which seriously restricts the development of the industry. 3. There is no standard in the industry, and internal vicious competition In vicious competition within freight forwarding, there is no industry association to formulate rules, and there is no uniform practice to guide industry behavior. 4. Single service model, narrow profit margin The freight forwarding service model and profit form are single, the added value is low, and the core competitiveness is lacking. The profit margin is easily affected by the cost reduction by the shipper and the freight rate increase by the carrier. 5. Thin funds, insufficient strength, difficult to grow ?Whether it is manpower, office or operation, especially sea freight, freight forwarding requires a lot of liquidity. However, the freight forwarding companies themselves are weak and bank loans are difficult. Insufficient funding is the main obstacle to the growth of freight forwarding. 6. Insufficient professional ethics, staff turnover leads to business loss ?Freight forwarding is engaged in an industry without specifications, mechanisms, and platforms. Most of the customer resources and information resources are in the hands of salespeople. Many business people have poor professional ethics. After mastering certain information and resources, they start a company or switch to another company, causing continuous loss of business. 7. Low status, no respect, no right to speak Freight forwarding not only has no status in front of cargo owners, shipping companies, and large logistics companies, but also has no status in front of governments. As a result, freight forwarding companies are not respected and have no right to speak in various industries. 8. Large international logistics companies enter China, medium and large logistics companies are the first to hit ?In recent years, the world economic situation has changed drastically, with the situation of 'cold outside and hot inside'. Foreign companies have entered the Chinese market and the Chinese market has been hit. And large-scale logistics and freight forwarding companies in China can rely on their accumulated strength to resist for a period of time, and small companies have low costs and can survive guerrilla warfare. Large and medium-sized companies have heavy burdens and their development is at the bottleneck stage. At the same time, the former large-scale companies including the intimidation of state-owned companies, the two sides of the same size counterparts fight, followed by the recovery of foreign companies, the first three years to hit the doom. Freight forwarding development trends A series of problems before the Chinese freight forwarding industry does not mean that the freight forwarding industry itself has not developed. The international freight forwarding industry is the core link of international trade, international transportation and physical logistics, and it is in the throat. International freight forwarding has three major advantages: The first is the information flow. All the information flow of international trade and physical logistics is in the hands of the freight forwarder. The second is the flow of funds. 80% of the international shipping charges and miscellaneous charges in the country are flown through the hands of freight forwarders, which are hundreds of billions of dollars and trillions of yuan; The third is business flow. 80% of the international trade volume of the country is completed by the freight forwarding agency, and 5% of the country's large and medium-sized freight forwarders are united. The entire cargo volume exceeds the total volume of COSCO and China Shipping. Forwarding crisis solution: 1. Utilizing the advantages of information flow, freight forwarding companies should be based on freight forwarding, and provide more value-added services such as finance, insurance, custody, and solution solutions for cargo owners and physical logistics companies. Not only can they quickly obtain returns with minimal investment, but they can also be stable Customers and market expansion. 2. Utilizing the advantages of capital flow, the huge capital flow of freight forwarding companies comes from the United, through a unified platform for capital operation, with large funds, large business, large projects, and big money. If the group's capital can be listed, there will be a lot of room for finance. 3. Utilize the advantages of business flow, scale operations, and improve status. If each port has a powerful, credible, and philosophical freight forwarding company united to form the king of kings, it can have a peer status and dialogue with Shipmaster, forming a long-term equality, harmonious and win-win market structure of 'cargo, shipping, and generation. 4. Make a national example, get government attention and policy support. In China, it is difficult to lead the industry without government support. Chinese freight forwarders must unite, transform themselves and innovate, set a national example, and then gain government attention and policy support.
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