The seller wants to jump off the building! The Shenzhen Express Ship crash is still going on

“ Shipping now is like clearing mines ,” “ Doing cross-border e-commerce is harder than obtaining Buddhist scriptures from the West, ” “ The first thing I’ll do every day when I wake up is to see if the freight forwarder has posted on WeChat Moments. If not, I’ll take the initiative to ask hello, so I can feel at ease ”... These are the most common sentiments expressed by sellers after the bankruptcy of Shenzhen Kuaijiejian Supply Chain Management Co., Ltd.

In recent days, the Express Ship incident has been widely discussed in the cross-border e-commerce circle. In the cross-border e-commerce industry, logistics is a link that sellers cannot avoid, so many people are paying attention to the progress and direction of this incident. The latest news is that the seller who was forced to do so went to the rooftop and wanted to jump off the building.

The storm of thunderstorm has not yet ended, and the victimized seller wants to jump off the building

Yesterday, multiple channels reported that a seller wanted to jump off the building at Kuaijie, and many sellers gathered on the roof. The pictures that were circulated showed that the police, firefighters and 120 ambulances had all arrived at the scene.

On May 31, the news of Kuaijie's bankruptcy began to spread in industry groups, forums and other channels. In summary, the main focuses of this matter are: 1. Kuaijie's capital chain was broken and it owed 40 million yuan; 2. The cargo owners (sellers and freight forwarders) had 170 containers detained and needed to redeem the goods at 2,000 yuan per cubic meter; 3. Kuaijie was no longer able to solve the problem and bankruptcy would be its end.

As soon as this matter was exposed, the sellers and owners of goods who used express shipping suddenly panicked and began to ask where their goods were.

On June 1, two logistics companies, Forest Global Logistics and New Wing, sent a collection notice to Express Ship. The notice showed that Express Ship owed $43,000 (about 300,000 yuan) in overdue payments to New Wing, and $253,107.06 (about 1.8 million yuan) in overdue payments to Forest Global Logistics.

Both logistics companies stated that due to the unpaid payment of the fast ship, their containers were temporarily detained in the warehouse.

The conditions for releasing the goods are that the consignee shares the debt owed by Express Ship + storage fees for the goods in the warehouse + delivery fees + possible labeling fees according to the volume of the goods. In short, "the owner pays the bill", which means that the owner mentioned above needs to pay to redeem the goods.

Yien.com has also contacted a large number of cargo owners involved in the incident. Some of them sold a dozen or more cubic meters, with the value of the goods ranging from tens of thousands to hundreds of thousands of yuan. If the value of the goods is small, they may directly abandon the goods, while if the value of the goods is high, they are still actively looking for solutions.

In addition to the two logistics companies mentioned above that have seized the relevant containers, local freight forwarders in the United States have also seized some containers.

Relevant person in charge: There is no such thing as soliciting goods at low prices

In fact, both sellers and logistics peers were shocked by the sudden collapse of Kuaijie. The reason is that, on the one hand, it is not a small freight forwarding company. It has nearly 300 branches, warehouse facilities, and service personnel, and its business scope is very wide. On the other hand, it was established as early as 2017 and is a veteran freight forwarding company.

When choosing a freight forwarder, sellers usually consider two aspects: "scale" and "establishment time". Kuaijie performs well in these aspects. Therefore, when such a freight forwarding company suddenly goes bankrupt, the sellers are instantly stunned.

Many people directly pointed out that the reason why Kuaijie has come to this point is that it "attracted goods at low prices", but this was denied by its cross-border ecological channel and market manager. He said that Kuaijie did not attract goods at low prices, but just standardized all links and optimized the costs of all aspects to the extreme through the volume of goods.

He admitted that the company did have cash flow problems, but that they were not caused by a single factor. " The current situation is that no one has come up with a solution that is acceptable to both or all three parties. "

As early as when the incident broke out, in order to understand the truth of the matter, Yien.com called the relevant person in charge of Quick Ship, but the reply it received was: "It is not convenient to respond."

A week has passed since the incident, and the industry has been buzzing with the news, but Express has never made a public response. Perhaps, as its head said, "It is too late to save the situation."

For the sellers, on the one hand the responsible party is unable to solve the problem, on the other hand they have invested a lot of money, and even the goods prepared for selling the house cannot be put on the shelves. It is no wonder that they would be so depressed that they want to jump off the building.

Based on the opinions of all parties, there are currently three main ways for cargo owners to deal with this matter:

First, you can choose to abandon goods with low value. Freight forwarders usually give the owner credit period, so the loss on freight is not big. If the value of the goods is not high, the loss of abandoning the goods may be much smaller than spending time and energy to deal with this matter.

Second, high-value goods can choose to redeem the goods. It should be noted that many cargo owners have reported that they can no longer redeem the goods even if they pay the money, because the Express Ship owes overseas warehouse fees, so the overseas warehouse will not release the goods.

The third is to file a lawsuit. If the other party is sued, the cargo owner will obviously win, but there is a problem. Like many freight forwarding companies, they do not have much executable property. In addition, if the employees initiate labor arbitration during the process, the relevant property may be used to repay the employees' wages first. And the process from prosecution to judgment is very long.

The cargo owner can make a careful choice according to his own situation. Of course, we hope that the Express Ship can come forward to properly resolve this matter.

Wage arrears and frequent changes of contact persons are signs of a freight forwarder going bankrupt

In recent years, it is not uncommon for freight forwarders to go bankrupt. Many people have a question: "Why is it always the freight forwarders that go bankrupt?"

One of the important reasons is that it is too competitive. When searching for the keyword "international freight forwarding" on Qichacha, there are 64,277 results, of which 12,423 are from Shenzhen.

When there are more suppliers in a market, internal competition begins, and the same is true for the freight forwarding industry. At first, they compete with prices, and when prices can no longer be competed, they compete with payment terms. A large logistics company is under great financial pressure. It has to pay cash for bookings at the beginning, prepay customs clearance at the end, and support customer payment terms in the middle. If it does not have reasonable profits and a certain financial pressure resistance, it is easy to collapse.

Shenzhen is a gathering place for freight forwarders, with a large base and many defaults. However, it is not impossible to prevent defaults in advance. In many cases, they have issued warnings. For example, the default of Express Ship had already exposed problems last year, but some sellers still chose this channel this year.

In addition, when observing these failed freight forwarders, they usually have two things in common:

One is the frequent replacement of contact persons. Whether it is the previous Quanyi or this time's Kuaijie, many shippers mentioned that before the thunderstorm, the contact persons with them had been frequently replaced.

The second is the arrears of employee wages. Many freight forwarders that went bankrupt started with arrears of employee wages. Some of them owed employees commissions, and some owed wages for several months. During the collapse of Express Ship, an employee said that not only had he not received his 400,000 commissions from last year to this year, but he also had a high probability of not getting his wages for five months this year back.

Therefore, when sellers are working with freight forwarders, they should pay attention to these changes and communicate more often with the other party’s business or employees so as to discover problems in a timely manner and withdraw in advance.

Express Ship