The reasons why China International logistics group was established

—— 2021-12-23

On 6th, December, 2021, with the approval of The State Council, China Logistics Group Co., Ltd. was formally established.

To assist domestic enterprises to go out and become bigger and stronger, we can only take logistics enterprises and freight forwarding companies as the main body, integrating various modes of transportation and complete transportation tasks. The establishment of China Logistics Group Co., Ltd. can be said to be a timely help.

The international system of Chinese logistics enterprises is backward. Nowadays, the foreign trade, supply chain and freight market system was not built by China, but by Europe and the United States. After the reform and opening up, China, as a elements link, was grafted on the European and United States market system. Europe and the United States also built a lot of market elements when they set up the system, so that when China enters the market system, doesn’t have to build new elements, can just use them. This is a convenience, which in turn will lead to no room for Chinese industries to develop.

Complete global layout and management methods of foreign logistics enterprises

There’s a similar story in the international logistics, it is the accessory industry of the international trade. As China gradually becomes the factory of the world and integrates itself into the world market, more and more products are purchased by foreign investors in China. Foreign logistics enterprises with foreign company purchase footsteps gradually into a second-tier cities of China, provide the freight service of form a complete set for foreign purchaser, Establish direct branches in the first and second-tier and port cities. As long as the forwarder and forwarder make use of their own hands of the power of pre-arranged manifest, to provide foreign freight forwarder booking space, customs clearance, trailer, warehouse, port and other services can make a lot of money.

Encounter the need for foreign branches to cooperate with the operation of the business, China’s freight forwarding enterprises are urged to find a cooperation in foreign freight forwarding company as soon as possible, so make do, anyway, can earn money on the line. They will not invest huge costs to build a direct foreign network, because once customers lose, they will face huge maintenance costs and no income. That is why the most powerful and most deserving state-owned large freight forwarders have not been able to integrate all foreign resources effectively.

 

International logistics company network

 

Profit margins for Chinese logistics companies are thin. Due to the risk of freight fluctuation and uncertain shipping time, they often choose not to take charge of international transportation, and only quote their products in the negotiation stage based on the terms that sea freight is collected by the consignee, and the freight terms are usually collected by the consignee at the destination port. Foreign consignees pay sea freight, which means that foreign consignees have the right to choose which logistics company to use, it is not difficult to imagine that foreign consignees rarely choose Chinese logistics companies as carriers. In this way, the largest income of sea freight and port of destination fees market, and Chinese logistics enterprises out of the.