A logistics company was put up with a banner, and the reversal is coming!

In the first half of 2022, the growth of the cross-border e-commerce market slowed down. Many cross-border sellers increased their revenue but not their profits. E-commerce platforms such as Amazon slowed down their revenue growth and even suffered losses. Recently, the cross-border e-commerce logistics industry has repeatedly exposed unfavorable information. The one that has been hotly discussed recently is Jiacheng International Logistics.

The company was hung with banners! Jiacheng Logistics: Already reported to the police

On the afternoon of May 17, an insider reported to Yien.com that a banner was hung at the office of Jiacheng International Logistics Company, which was written with content denouncing Jiacheng International Logistics. It is understood that the incident took place at Jiacheng Logistics' branch in Shenzhen. Apart from this, the whistleblower did not provide any more information.

Soon, on the evening of May 17, Jiacheng International released a statement through its WeChat official account, explaining the cause of the incident to the public.

The announcement stated that the goods shipped to Europe by Shenzhen Changheng International Freight Forwarding through Jiacheng International Logistics were inspected by Liege Customs. Hengchang Express was dissatisfied with the customs' waiting time for release, so it posted banners, took photos and spread them at Jiacheng's Bantian branch on May 16. In response, Jiacheng has taken measures to call the police. The outcome of the incident needs to wait for the police to handle it. Jiacheng also reserves the right to pursue the malicious dissemination in this incident.

It has to be said that Jiacheng responded to this incident relatively quickly. However, some insiders believe that the statement of one party alone is not enough to restore the full picture of the incident, and more information is needed to make a judgment on this matter.

However, just when the aftermath of this incident had not yet completely subsided, another piece of news pushed Jiacheng International to the forefront.

On the morning of May 18, multiple media and platforms reported that China Travel Service Huamao International Logistics Co., Ltd. (hereinafter referred to as Huamao Logistics) withdrew its 67.2311% stake in Hangzhou Jiacheng International Logistics Co., Ltd. After the equity change, the shareholders of Jiacheng International Logistics are Song Cheng, Hangzhou Junjie Investment Partnership (Limited Partnership), Hangzhou Juncheng Investment Partnership (Limited Partnership), and Yin Qi, and the shareholding ratio is unknown.

According to previous public information, in July 2021, Huamao Logistics announced that it would acquire 70% of the shares of Hangzhou Jiacheng International Logistics for 505 million yuan in cash. After the completion of this acquisition, Jiacheng International Logistics has become a holding subsidiary of Huamao.

Just when everyone was discussing the reasons for Huamao's "withdrawal", the incident took another turn! On the afternoon of May 18 (that is, that day), Huamao Logistics issued a clarification: after the company completed the acquisition of Jiacheng Logistics shares, the proportion of equity held by the company did not change, and the relevant media reports that Huamao Logistics "withdrew from 67.23% of the equity of Hangzhou Jiacheng International Logistics" were inconsistent with the actual situation. Jiacheng International also issued a clarification statement through Weibo and other platforms.

At present, the National Enterprise Credit Information Publicity System and Jiacheng International’s industrial and commercial registration form show that China Trade International still owns 70% of Jiacheng International’s shares.

In just a few days, Jiacheng International first experienced banners being hung around the company, then it was "exposed" that its parent company had withdrawn its shares, and finally the parent company came forward to clarify the information. After this repeated process, Jiacheng International has experienced great ups and downs in terms of public opinion.

Industry dividends are declining, and the logistics circle is also involuted

Recently, the cross-border logistics circle has indeed been turbulent. Not long ago, a staff member of a logistics company was found to have concealed commercial items when declaring customs. The customs required the company to pay high additional taxes. This incident involved a total of 91 containers, 640 customers, and the loss amounted to 11 million yuan. In addition, there were also reports that a logistics company was inspected by Japanese customs due to a report from a peer. The more than 400 containers to be inspected involved goods worth about 100 million yuan.

Why has there been so much bad news in the logistics industry recently? This is also related to the recent situation faced by cross-border e-commerce logistics.

In fact, it is not only the sellers who are affected by the epidemic. The logistics industry is also having a hard time. The epidemic in Shanghai, Guangdong and other places some time ago caused sellers to complain about the difficulty of shipping and the increase in logistics costs. However, logistics companies, like sellers, are also suffering from the problems of travel obstruction, reduced business volume and increased costs.

In addition to the impact of the epidemic, more importantly, in the context of the entire cross-border e-commerce market, logistics companies are also experiencing the same internal competition as sellers. Many practitioners in the logistics industry have told the editor that due to the reduction in orders, various logistics companies are accepting goods at low prices.

"Business has been slow recently, and everyone is buying at low prices."

"The business volume is not as big as last year, and the prices have also been lowered."

Not long ago, Amazon's chief financial officer said that Amazon has invested heavily in logistics during the epidemic, but with the slowdown in consumption growth , Amazon's logistics capacity has become oversupplied . This year, Amazon will significantly curb its investment in logistics, especially its cooperation with third-party logistics. From Amazon's speech, we can also get a glimpse of the current situation of the cross-border e-commerce logistics industry: market demand is declining and supply capacity is oversupplied.

In the past two years, the rapid growth of the cross-border e-commerce industry has also led to the rise of the cross-border logistics industry. During the epidemic, both companies and individuals in the logistics circle have made a lot of money by relying on market dividends. The market opportunities everywhere have attracted many outsiders to enter, and many people in the circle have also had the idea of ​​leaving the company and going out on their own. It is estimated that in the past two years, thousands of cross-border e-commerce logistics companies have been born in China, most of which are small businesses.

However, as the dividends brought by the epidemic gradually faded, overseas epidemic prevention policies were gradually relaxed, offline consumption recovered, and online consumption was hit. The decline in seller traffic and orders also affected the business of cross-border logistics companies. Like cross-border e-commerce sellers, these small start-ups have to face declining market demand and increasing competition from peers shortly after their establishment.

As the demand in the industry decreases, sellers have more and more logistics companies to choose from. In order to maintain the operation of the company and business, more and more logistics companies choose to compete at low prices, and even lose money to receive goods. However, logistics companies also have to pursue profits, so they have to find ways to reduce costs in all aspects. Some logistics companies even reduce the quality of service for this purpose. Therefore, it is not surprising that logistics companies have disputes with customers, conceal declarations, and peers sabotage and report each other for competition.

From the similar development trajectories and situations of the cross-border logistics industry and cross-border e-commerce sellers, it can be seen that the entire cross-border e-commerce industry will prosper together. In this environment, the entire industry should work together to maintain a good market environment.

Jiacheng International

Cross-border logistics

China Trade International