Freight forwarders self-report? Faking customs inspections, logistics companies engage in price wars!

Freight forwarders self-report? Faking customs inspections, logistics companies engage in price wars!
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The horn of the peak season has already sounded, and cross-border sellers are now preparing for this long-term peak season. During this critical period, any obstruction in any link of logistics may disrupt sellers' stocking plans, causing delivery delays, inventory backlogs, and even affecting the normal turnover of the capital chain.
 
However, in recent times, cross-border logistics industry has seen a series of financial scandals. First, a Shenzhen freight forwarder ran away with the money and the supplier came to the door to collect the debt. Later, a logistics company was reported to have been inspected by customs and lost tens of millions of yuan. In addition, export orders have fluctuated greatly in recent times, and many freight forwarders have engaged in price wars to compete for customers, and even derived various routines.
 



Logistics companies forged inspection documents, and freight forwarders started a price war?

Under the influence of many uncontrollable factors such as repeated epidemics and port congestion, logistics timeliness has always been a pain point that many sellers find difficult to resolve. However, cross-border logistics is unfathomable, and various bad logistics companies have repeatedly challenged the bottom line of sellers.
 
 
A seller disclosed that he sent a shipment of goods through a logistics company at the end of last year. According to normal timeliness, it should have arrived at the port in about 20 days. However, after a month, UPS still had no news. From the departure of the ship on December 1 last year to the arrival of the port on January 16 this year, it took 45 days for the goods to be officially signed for.
 
However, to make matters worse, the seller's second batch of goods shipped by the logistics company also encountered problems. The ship set sail on January 12, but only 12 days later the seller was notified that the goods were subject to customs inspection. The goods were not signed for until March 16, and the total transportation took more than 70 days, resulting in the seller's products being out of stock for a month.
 
It is reported that the logistics company claims to charge the highest fees in the industry for its time-limited delivery service, but it also has the fastest delivery time. However, the seller's two consecutive batches of goods were delayed for a long time, which makes it difficult not to suspect that the seller is "charging the most expensive money and sending through the cheapest channel."
 
In fact, a seller recently exposed a similar routine. After a freight forwarder ordered two regular containers, he bought the goods from Meisen Express at a low price. After receiving 7-8 containers, he took them to COSCO and provided the seller with the regular container number. After arriving at the port, he reported the container for inspection.
 
    The picture comes from the seller communication group

Since customs inspection time is not included in the prescribed time limit, many freight forwarders forge inspection documents to cover up the fact that time delays are caused by using cheap channels.
 
It can be seen that many logistics companies on the market are using fraudulent schemes one after another, and incidents of goods not being delivered through formal channels occur frequently. In addition, many freight forwarders play word games and confuse scheduled delivery (CCX or CLX+) with time-limited delivery (CLX).
 
Looking back at the past few months, the export orders of cross-border enterprises have fluctuated greatly. The reduction in export volume during the off-season has also indirectly affected the freight forwarding industry. Many freight forwarders have engaged in price wars and solicited goods at low prices to snatch customers. However, the internal competition among freight forwarders has also brought a series of problems. Recently, there have been frequent incidents of logistics companies being exposed to low declarations and being inspected by customs, resulting in heavy losses, which has affected the normal delivery of sellers.
 
     The picture comes from the seller communication group

However, as the peak season approaches and the epidemic situation in various parts of the country is gradually under control, foreign trade orders will usher in a new wave of peaks. According to reports, Shanghai's unblocking policy and resumption of work and production are being steadily implemented, which will also promote a new round of shipment boom.
 



As the epidemic eases, there may be a wave of retaliatory shipments, and freight rates may rebound?

It is understood that as of May 17, all 16 districts in Shanghai have achieved zero social contact, and the resumption of work and production will be implemented in stages.
 
As Shanghai gradually lifts the lockdown, more and more companies will resume production, and there is a high probability that a wave of rush to ship goods will come. According to industry forecasts, the manufacturing industry will see a surge in retaliatory shipments, and the shipping industry will also see strong market demand, which may lead to increased supply chain pressure and push up freight rates.
 
It is reported that in April , Shanghai's container throughput recovered to 80% of the same period last year. Despite strict epidemic prevention and control, the average stay time at Shanghai Port was 2.12 days, a year-on-year decrease of 34.0%. In April, Shanghai Port completed a container throughput of 3.09 million TEUs, a year-on-year increase of 82.4%. Since May, the port's container throughput has continued to maintain a strong momentum.
 
 
As the world's largest container port and major transportation hub, Shanghai Port has been hit by a massive backlog of cargo and severe logistics delays on some routes due to the pandemic. Now that it is gradually resuming normal operations, it is also conducive to sellers' peak season shipment turnover.
 
At present, it seems that the easing of the epidemic in Shanghai will lead to a short-term recovery in cargo volume, and freight rates may also rebound. For sellers who are currently preparing for the peak season, it is particularly important to formulate a comprehensive delivery plan, which must ensure sufficient supply to avoid stock out, and avoid the risk of capital chain being broken due to excessive pressure on goods.
 
Under multiple pressures such as rising freight costs, logistics delays, and inventory turnover, sellers need to have sufficient cash flow to cope with product selection and stocking and subsequent product promotion.
 
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