Dalian held the first enlarged meeting of WIFFA International Freight Forwarding Federation’s governing members. More than 30 freight forwarding companies from eight major ports participated in the meeting. The meeting discussed the core program of WIFFA and approved the appointment of the first rotating chairman. Everyone agreed that the current situation in the freight forwarding industry is severe and we must unite to establish a credit mechanism and find a way out for future development.
In order for WIFFA Federation to truly provide effective services for freight forwarders and lay the foundation for the establishment of China United Freight Forwarding Group Corporation, He Zhuan, the first rotating chairman of WIFFA Federation and chairman of Ningbo Huanji International Logistics Co., Ltd., and WIFFA Federation Secretary-General and General Manager of China International Shipping Network Kang Shuchun and Secretariat staff visited the eight major ports from August 7 to August 23. We met with 15 representative CEOs of freight forwarding companies at each port, and visited more than 100 companies in total to listen to everyone’s opinions and ask for industry development ideas.
The WIFFA Secretariat will release three reports in the near future: “Survey Summary on the Current Situation of the Freight Forwarding Industry”, “WIFFA Freight Forwarding Federation Implementation Plan Report” and “China United Freight Forwarding Group Company Business Plan Report”. This summary is the first survey result and is for industry reference only. The latter two reports will be released soon.
- Survey on freight forwarding operations at various ports
- Shenzhen and Guangzhou freight forwarders explore supply chains
In Shenzhen and Guangzhou, there is no concept of “booking gate”. Whether it is a large freight forwarder, a small freight forwarder or a direct cargo owner, they can book space directly with the shipping company. This leads to two phenomena: First, cooperation between freight forwarders It is not close enough. Secondly, the service content of each freight forwarding company is complicated.
Shenzhen and Guangzhou are at the forefront of reform and opening up, with new ideas and new things leading the way. Two or three years ago, many freight forwarders began to engage in “supply chain” business, including trade agents, financing agents, logistics agents, etc. For example, after a foreign trade company signs a foreign contract, the freight forwarding company takes full custody and provides comprehensive services from bank financing to issuance of letters of credit, documents, storage and transportation, and after-sales services.
- Ningbo and Xiamen freight forwarders began to take the joint route
Ningbo and Xiamen ports began to adopt the joint booking route. In addition, the local business culture is very good, and a certain degree of close cooperation has been formed between freight forwarding companies with different expertise and between large and small freight forwarders. This has also led to the emergence of two phenomena: First, the emergence of large Bookmaker, the largest bookmaker in Ningbo has hundreds of thousands of boxes each year; secondly, a harmonious competition mechanism is formed in the local area, and spontaneous industry associations and clubs are generated.
Freight forwarders in Ningbo focus on strengthening the local area and rarely open branches in other places. Even if they open branches, they are not mainly focused on developing the market, but mainly on designated goods or operations. Local freight forwarders form an alliance, and it is difficult for foreign freight forwarders to enter. Most of them “go in standing up and come out lying down.” (The picture below shows the WIFFA Chairman and his delegation visiting Xiamen)
- Competition in Shanghai’s large market is intense
Shanghai is the largest freight forwarding market in China. Freight forwarders from the Yangtze River Delta and the golden waterway of the Yangtze River as well as overseas agents gather in Shanghai, causing Shanghai’s freight forwarders to be “overcrowded”. There are many freight forwarding companies working in every commercial office. In Shanghai, competition among freight forwarding companies is greater than cooperation. Most freight forwarding companies lack new ideas and have begun to change careers or invest in real estate, mining, tourism and cultural industries.
- Qingdao freight forwarding seeks to rise
The ports to the north of Qingdao begin to have northern characteristics. The credit crisis at ports in the north is greater than that in the south, companies are more conservative, and the traditional freight forwarding business model is still in its original state 10 years ago.
The concepts and models of Qingdao freight forwarding are better than those of Tianjin and Dalian. Some companies have begun to develop their expertise in depth, such as building platforms, sourcing a wide range of goods, or abandoning traditional freight profit business to focus on logistics services, or developing overseas logistics channel business. (The picture below shows the WIFFA Chairman and his delegation visiting Qingdao Port Freight Forwarding Company)
- Tianjin freight forwarders work independently
Tianjin port freight forwarding has a strong regional culture, is relatively conservative, and lacks ideas for expansion. Some large freight forwarding companies have encountered development bottlenecks and began to develop in other cities. There are so many small freight forwarding companies, each working in their own way, and the competition is chaotic. Tianjin has more cargo volume than Dalian, and strong freight forwarders can still achieve certain benefits.
The LCL business at Tianjin port is relatively standardized. The three major companies own most of Tianjin’s LCL business market, which also makes Tianjin’s LCL business relatively standardized and difficult for outside cities to squeeze in.
- Dalian market is sluggish
The freight forwarding industry at Dalian Port is the weakest among the eight major ports. There are three reasons: the port business volume is insufficient, there is no concept, and the freight forwarding service model is single.