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Why are freight forwarders always the ones that get the most thunder in the cross-border circle?

Have you noticed that since May last year, there have been a lot of news about freight forwarding thunderstorms. Either the capital chain is broken and the goods are backlogged, or marketing tricks are used to withdraw money and escape. What is the problem in the freight forwarding industry? To be honest, in the past few years, maritime logistics has become a dark horse industry in the cross-border circle. The abnormally soaring shipping prices in the past two years have also created a large number of freight forwarders. It is even rumored that the profitability of freight forwarding and logistics is like one car a week and one house every six months, but the bubble will eventually come. With overseas demand weakening and cargo volume declining severely, shipping prices have fallen again and again, finally falling back to pre-epidemic levels. Cross-border sellers feel more comfortable, but freight forwarders are having a hard time.

freight forwarders

The shift from finding goods to ships has gradually evolved into finding ships to find customers. The freight forwarding industry has also entered a stage of major reshuffle. It can be said that low prices are involved. It is not only exclusive to Amazon sellers. The freight forwarding industry is even more scary. How about 1.98 yuan/KG shipped? In the United States, all nine FBA warehouses in the United States and the West offer 0 yuan rebates, and various low-price and fancy marketing routines are coming. This shows how difficult it is for small and medium-sized freight forwarding companies to survive. Let’s first understand, what is the essence of freight forwarding?


To put it simply, it is the role of an intermediary between shipping companies and customers, a bit like a second-hand housing agency. It uses professional shipping knowledge to help the client find a suitable warehouse location, complete international cargo transportation, transshipment, warehousing, loading and unloading, etc., and To earn labor remuneration, for sellers, it is more cost-effective to find a freight forwarder than to go directly to a shipping company. Some companies provide comprehensive services and can solve back-end transportation problems. Moreover, with the rise of cross-border e-commerce, a large number of small and medium-sized cross-border seller companies have emerged. Their shipment volume is far from enough to negotiate prices with shipping companies, so freight forwarding has gradually evolved into a rigid demand industry, so even if it is so important , or "crisis of trust" appears at every turn. What is the problem in the freight forwarding industry?


1. The entire industry has more monks and less meat.


According to Qichacha, how many international freight forwarding companies do we have? 310,000. The market was too profitable in the past two years. Freight forwarders, large and small, popped up one after another. When there are too many choices in a market, some companies will appear to make unlimited choices in order to survive in competition. Promise of.


2. The industry has not established reasonable charging standards


With a phone and a computer, just say that you are a freight forwarding company. It is too common in this industry. Many small start-ups, in order to keep the company's cash flow, start to sell goods at ultra-low prices or even lose money. It is no better than sellers selling goods at a loss. In order to get a good ranking, the account terms of small freight forwarders are not so loose, so many freight forwarders can easily enter a vicious cycle that is difficult to turn back.


3. Service levels vary


To be a good freight forwarder, to be honest, there are still requirements for some professional knowledge, such as container knowledge, shipping industry, customs taxation, etc. But now, both professionals and non-professionals have to come and eat the cake, which also leads to sellers The trust in this industry continues to decline, so how can our sellers avoid this pitfall?


1. Don’t be greedy for cheap.


They are all doing business, no one does business at a loss, the wool comes from the sheep.


2. Pay attention to reducing risk value


First of all, if it is an item of relatively high value, you can choose to cooperate with a logistics company that has been in business for a long time, is relatively well-known, and has a good reputation in the circle. In addition, you can consider purchasing logistics and transportation insurance for important goods, and you can claim compensation for loss or delay.


3. Repeatedly confirm the contract and clarify the division of responsibilities


Generally speaking, when you find a freight forwarder, you will sign a relevant contract. The freight forwarder is responsible for the responsibilities. You must see clearly and confirm with the other party before signing the contract. In case there is a problem later, you can maintain it through legal channels. own rights and interests.


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