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Opportunities and challenges for Chinese freight forwarding companies

Zoom in font  Zoom out font Published: 2019-01-08  Views: 3
Core Tip: “In recent years, with the increasing number of imported fruit varieties approved for entry into China, China’s fruit import volume has grown rapidly, which has created many opportunities for the development of Chinese freight forwarding companies, while
“In recent years, with the increasing number of imported fruit varieties approved for entry into China, China’s fruit import volume has grown rapidly, which has created many opportunities for the development of Chinese freight forwarding companies, while also bringing many challenges.

Freight logistics and related labor costs continue to increase, resulting in a reduction in profit margins and the additional costs imposed by the port lead to further increase in operating costs. From the 1st of January 2019, the MSC low-sulfur fuel surcharge (LSS) will be implemented by each port. Also, while the entry requirements for fruit have decreased, the market competition is extremely fierce and the risk of subsidizing funds for freight forwarding companies has increased along with capital turnover pressure."

“As a professional international freight forwarding company, our products are mainly made up of fresh fruits, processed fruits, processed foods, etc. Among them, imported fresh fruits account for the vast majority, including Vietnamese dragon fruit, Thai durians, coconuts, Philippine bananas and pineapples, Chilean cherries and grapes, Peruvian grapes, South African oranges, Egyptian oranges and Egyptian fresh grapefruit."

“Each year, our total cargo declarations at ACT, HIT, MTL Terminal in Hong Kong, Shenzhen Shekou Port and the Hong Kong International Airport, are about 15,000 cabinets. The proportion of business volume achieved by the above regional ports is 60%, 36% and 4% respectively. "

“At present, our customer base is wide-ranging; most of them are major fruit wholesale markets, import and export fruit traders, shopping malls, supermarkets, e-commerce, e-commerce platforms, etc. In addition to import and export goods for customers, we also handle fruit import licenses, relevant import qualifications and filings, and provide professional international logistics services through our own and third-party logistics services."

 
 
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