Four vests soliciting goods? This freight forwarding company went bankrupt

Recently, the freight forwarding industry has seen frequent financial crashes, with more and more cases of freight forwarders running away, capital chain breaking, and low-price cargo collection. This is exactly what is said: the more difficult the time, the more likely it is to have financial crashes, and the chaos in the freight forwarding industry is turning from a "black swan" into a "black rhino".

Hundreds of thousands involved, freight forwarders were held up by their peers

Recently, a seller revealed that another freight forwarding company in Shenzhen went bankrupt and was visited by fellow freight forwarders with banners hanging on them. The banners clearly printed with a dozen big characters including "Yue *International", "Ju*International", "Kuai*International" and "Xiao*Logistics".

In the content exposed by the freight forwarder, we can see that although the legal persons of Yue * International and Kuai* International are different, their external receiving goods are headed by Xiao* Logistics and Ju* International, and the contact person is Song**. According to the whistleblower, the above four companies are all vests of a freight forwarding company.

After searching on Qichacha , the editor found that Yue * International and Kuai* International were established in July and June of this year respectively, and are currently in operation. In the column of legal representative's affiliated companies, the above two companies are related to each other. In addition, there is another company invested by Zheng * that is also a common company of both parties.

Back to July 15, 2022, when the incident occurred , Song** was mainly responsible for receiving the back-end oversized truck delivery service, and used his abundant truck resources in Los Angeles as a gimmick to receive the goods. However, according to the revelations of his peers, the goods that Song** was responsible for had been kept in the overseas warehouse after the cabinet was picked up and not delivered. When the freight forwarders of the same industry asked about the goods many times, Song** said that the goods had been handed over to the truck company and the goods were being delivered.

"They said they were dealing with the problem, but there was no progress on the goods," said a fellow freight forwarder. It was reported that the company did not deliver the first container of July's goods until early September. Later, due to high costs and the need to collect goods for delivery, the goods were stranded in the warehouse for 90 days. The fellow freight forwarder had no choice but to pick up the goods himself, with an estimated loss of 800,000 yuan.

Some industry insiders have analyzed whether this freight forwarding company is trying to collect money and run away. After all, the registration time is so short and the company's main projects are surprisingly consistent.

In fact, the situation of the above companies is just a microcosm of the freight forwarding industry. Since the beginning of this year, there have been a series of incidents such as freight forwarding booking fraud, broken capital chain, false declaration, and cargo detention fees of up to millions. Many freight forwarders and cargo owners have also been caught in the crossfire.

"Wang, the boss of a freight forwarding company in Ningbo, defrauded millions of dollars. After collecting shipping fees from more than a dozen client companies, he transferred assets and claimed to his clients that he was having operational difficulties and asked them to pay the shipping fees again," a netizen revealed.

It is reported that Wang has accumulated hundreds of thousands of trailer fees that have not been paid to the fleet, and the amount involved in ocean freight and demurrage fees exceeds one million. He also told dozens of victim companies: "There will be money coming in in the near future. Don't tell other companies. I will arrange the money for you first." It is precisely this kind of brazen operation that has caused more than a dozen companies to wait for repayment. However, according to netizens, Wang has changed the company name and is advertising trailer business.

Financial failures are common, and this year there are particularly many. So why are there so many financial failures among freight forwarding companies this year?

Freight forwarders frequently default on their accounts. How can sellers avoid being scammed?

Industry insiders pointed out that the gradual fading of platform dividends is an important reason for the collapse of freight forwarders. With the recovery of the offline economy abroad, the traffic of mainstream e-commerce platforms such as Amazon has been declining compared with before the epidemic. For example, Amazon's net loss in the first quarter of this year reached 3.8 billion US dollars. Under such circumstances, sellers' shipments have been greatly reduced, and naturally freight forwarders cannot receive goods, especially some bad freight forwarders. In order to receive goods at a low price, some freight forwarders will take risks to receive goods; in order to make money, these bad freight forwarders can only clear customs at extremely low prices, but the chance of being inspected will also increase.

Secondly, there are many players in the freight forwarding industry and the quality is uneven. Earlier, the market was full of rumors that "freight forwarders can earn a house in Shenzhen in one month without doing anything". This short-term and quick arbitrage method has attracted many freight forwarders with impure purposes to join the market, and freight forwarding companies have also sprung up everywhere. However, some bad freight forwarders do not have standardized products or warehouse resources. They are a company of three or five people. They serve customers by reselling warehouse space, and they take goods at low prices or even at a loss. After making a fortune, they quickly withdraw and change to another store to continue to reap the benefits.

In addition, the long cross-border logistics chain and strong uncontrollability are also important reasons. From domestic door-to-door pickup to overseas customer receipt, it is necessary to go through multiple distribution nodes, but some bad freight forwarders cannot control the entire process of the goods, and the probability of goods being lost, damaged, etc. increases. Of course, bad freight forwarders will also make excuses for various reasons, and may even run away.

Of course, the way many cross-border sellers choose freight forwarders also provides fertile soil for these "bad freight forwarders". It is understood that some sellers currently choose freight forwarders in a variety of ways, such as introductions from friends, lectures from training institutions, low prices, etc. As a result, some legitimate freight forwarders are helpless, watching their customers choose unreliable freight forwarders, and can only worry but cannot stop them.

For sellers, it is extremely important to open your eyes and choose a good logistics provider. When choosing a freight forwarder, sellers need to consider it from multiple dimensions ↓

1. Check the business license to understand company-related information such as the year of establishment and whether the business address has changed frequently.

2. Check whether the company itself has any risks on websites such as Qichacha.

3. If the volume is large, you can visit the company to learn more about its operations, its professionalism, and its warehouse’s capabilities.

4. Understand the advantages of the freight forwarding company, how it compares with its peers, and what are the main advantageous channels it promotes.

5. For important goods, you can consider purchasing logistics transportation insurance, so that you can claim compensation in case of loss or delay .

For sellers, it should be clear that the cheaper the logistics provider, the better. As the saying goes, without profit, there is no support for good service. Otherwise, it is very likely that both the goods and the freight will be lost. You must choose a service provider with strong risk control capabilities, back-end processing capabilities, the ability to optimize timeliness and strong strength.

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