Big news! The state is interfering with cross-border logistics! Logistics costs are finally going to drop

Today, December 6, with the approval of the State Council, China Logistics Group Co., Ltd., a new central enterprise with comprehensive logistics as its main business, was officially unveiled!

The group was formed by the integration of the former China Railway Materials Group Co., Ltd., China Material Storage and Transportation Group Co., Ltd., China Merchants International Logistics Co., Ltd., China Logistics Co., Ltd., and China Packaging Co., Ltd., in which the State Assets Supervision and Administration Commission holds a 38.9% stake.

At present, the newly formed China Logistics Group has more than 600 branches and occupies a huge market share in a series of fields such as logistics, warehousing, and packaging. With these industry giants and the huge scale backed by the State-owned Assets Supervision and Administration Commission, it is bound to build a world-class logistics giant empire. In addition, it is mentioned in the official press release that the business of China Logistics Group focuses on cross-border e-commerce, overseas warehouses, international cross-border logistics, and international freight forwarding. There is no doubt that the national team's entry into cross-border logistics is definitely a strong deterrent to several big dealers who have monopolized upstream prices.

A few months ago, we talked about a very outrageous thing, that is, the logistics dealer *xing was exposed that a large number of goods were piled up in the closed area for several months without any movement. The official did not arrange any pick-up and unloading work, claiming that there was an urgent shortage of unloading personnel and truck drivers.

The containers are deliberately piled up and not processed, and there is a shortage of drivers and unloading personnel, so they are deliberately not recruited in large numbers. Even if Biden, the US government, has ordered the ports to work 24 hours a day, the shipping companies are still holding back their processing capacity and not opening it up. This is to deliberately create congestion and a shortage of shipping capacity, thereby controlling the rise in shipping prices!

The leading shipping companies, such as *Star and *Sen, have invested in or even directly bought the terminals they manage, so finding people is a matter of whether they want to or not. In the past few months, shipping has been in full swing, and it was hard to find a container. At that time, a 4,000TEU cargo ship could earn back the price of the entire ship in one trip. This crazy wealth made the shipping companies reap the sweetness. As a result, there was no shipment due to power and production restrictions. After the sharp drop in shipping prices, the leading shipping companies could not accept such a gap at all, and artificially created a wave of shipping congestion and price surges after October.

Just imagine if there was such a state-owned logistics giant at that time, would *Xing*sen and other dealers dare to be so unscrupulous? As long as you dare to cover up the price increase of transportation capacity, China Logistics Group will be able to throw out a large amount of low-priced transportation capacity to make the dealers dizzy.

The launch of China Logistics Group this time will not only provide a "stabilizing force" for the entire logistics industry, preventing major giants from making trouble, but will also have a huge impact on the entire cross-border logistics industry.

In the past two years, as foreign trade and cross-border business have been booming, shipping companies have actually been making small moves behind the scenes. In addition, apart from the top shipping companies, there are systemic problems in the entire chain of many logistics and freight forwarding companies, which leads to opaque terminal prices.

The emergence of national logistics giants means that the entire industry has a benchmark reference in terms of cost, service, timeliness, channels, etc. When we sellers choose freight forwarders, we can compare the services provided by various freight forwarders. This will make the prices of the entire logistics industry more transparent and the competition in the industry more benign. We cross-border sellers have the opportunity to enjoy better cross-border logistics solutions.