Another freight forwarding company went bankrupt!

Following the soaring freight rates and port congestion, a series of freight forwarding scandals have caused a stir in the cross-border circle. Many freight forwarding companies in Shanghai, Shenzhen and other places have been exposed to the fact that their capital chains have been broken and their cabinets have been seized, which has become the last straw that broke the camel's back. Recently, another freight forwarding company was exposed to have a problem.

The building is empty, and another freight forwarding company goes bankrupt

Another freight forwarder has gone bankrupt. Recently, a colleague revealed that Shenzhen *He Supply Chain Technology Co., Ltd. (hereinafter referred to as "*He Supply Chain") had run away. Many colleagues and sellers went to the company to defend their rights, but found that the company was deserted.

According to feedback from sellers, the company's capital chain is suspected to be broken, the person in charge has lost contact and absconded with the money, and the police have also come. Many owners of goods said: "The company ran away, and no one is handling the goods that were shipped. I hope the owners will protect their rights together." In this regard, the editor has tried to contact the relevant parties many times, but to no avail.

Judging from the advertisements issued by *He Supply Chain on major platforms, the company was established in 2023 and mainly engaged in sea and air logistics lines to Mexico. It has warehouses in Shenzhen and Mexico, and claims to have overseas warehouses and logistics parks covering 38,000 square meters in Mexico.

But it is such a freight forwarding company that has now embarked on the path of "company bankruptcy and cargo owners defending their rights". Tianyancha data shows that the company is currently involved in a legal case. And according to reports from peers, the company had already shown signs of bankruptcy as early as last year.

In fact, the collapse of freight forwarding companies is not uncommon recently. Before the collapse of *He Supply Chain, many freight forwarding companies had already run into problems, including many logistics companies including Shanghai *Shun, Shanghai *Tu, Shenzhen *Sheng, etc. The reasons for their collapse were various, such as broken capital chain, overdue overseas warehouse freight, etc., but in the final analysis, it all comes down to one word: "money".

In order to receive a large number of goods, some weak freight forwarding companies often offer low prices and then allocate them to the next buyer at a high price to earn the difference. However, this operation also has disadvantages. Once the capital chain is broken, the customer will have to pay to redeem the goods, or even the freight forwarder will run away.

This is also an obvious trend in the industry. In recent years, along with the booming development of cross-border e-commerce, the freight forwarding industry has also seen its “departure” after the chaos. According to Qichacha data, the cancellation rate of freight forwarding companies in China that have been established for 3-5 years is as high as 51.4%, and the cancellation rate for 5-10 years is 81.4%, indicating a significant trend of industry reshuffle.

Hard to guard against! There are many tricks in the cross-border logistics chain

It can be said that the collapse of freight forwarding companies is not accidental. Although the external environment is becoming increasingly severe, they continue to develop various routines to receive goods in the cross-border chain, causing sellers to suffer heavy losses while also damaging the reputation of the entire industry.

Low price, high compensation. They first attract customers with low prices, then raise the price after the goods are put into the warehouse, and then ask the owner to pay the freight for various reasons. After the goods arrive at the port, the logistics costs are often several times higher than the quoted price.

False reporting of volume. There is a big discrepancy between the estimated volume and the charged volume. Generally, the volume is measured and photographed for verification, but the measured items may be several or even dozens of cubic meters more than the original.

Since UPS uses a monthly financial settlement method, bad freight forwarders often collect cargo at no cost in the short term, until UPS closes the account due to overdue freight, and then they run away with the freight .

Word trap. In terms of transportation cycle, some companies will use the gimmick of 10 days or 28 days for sea transportation, but it is difficult to guess which transportation link is actually involved.

Mixed loading of ordinary and sensitive goods. Most of the goods in the cabinet are dangerous goods and sensitive goods received at high prices, but the end of the box is sealed with ordinary goods from e-commerce. Once discovered, not only will the inspection time be longer, but there will also be expensive fines.

There are also many problems in the delivery process. Recently, many freight forwarding companies have reported that their goods have been detained by truck companies and they need to pay a "ransom" to release the goods. At present, there are about 50 trucks of goods that have been detained, with a value of nearly 5 million US dollars.

At first glance, it seems to be the trucking company's fault, but the two sides' statements are inconsistent. According to the trucking company, the freight forwarder seized the goods because they had not settled the relevant payment, and some freight forwarders also underpaid the freight with excuses such as "delayed delivery, lost items, and insufficient goods". The trucking company seized the goods only to make them pay the freight.

Freight forwarders disagree: "This is a conspiracy by the trucking company. The underpayment of freight is based on the agreement." At present, some freight forwarders choose to pay money to redeem the goods, while others choose to stick to it. Regardless of whether the matter is right or wrong, the impact on customers is obvious. The freight forwarder does not speak out, the cargo owner is unaware, and the seller is the one who bears the responsibility in the end.

The risks in the logistics chain are endless. How can sellers avoid them?

In addition to internal reasons, changing external policies are also a major factor affecting freight forwarding bankruptcy. Take Mexico as an example. The local customs policies are complex and changeable. If you are not careful, the goods may be detained or destroyed.

On the one hand, there are endless risks in the logistics chain, and on the other hand, there is a rigid demand from cross-border sellers. So how can sellers avoid risks?

Choose a regular logistics company. When cooperating with sellers, be sure to choose a logistics company that is qualified, reputable, and of a certain scale. It is best to check the company's past service records and customer reviews. Check whether the company has abundant logistics channels and whether the after-sales service is complete.

Spread the risk. Just like operating on multiple platforms, sellers should also try multiple logistics companies for comparison, rather than using the same logistics company to send all goods.

Be wary of low prices. There is no shortage of freight forwarders in the market. When a company quotes an extremely low price, be careful. When shipping, be sure to sign a contract with the transportation company and clearly list the fees and corresponding services.

Through multi-angle evaluation, sellers can avoid detours when choosing a logistics company.

Yienjun learned that Shenzhen Shunyou Cross-border Logistics Co., Ltd. (hereinafter referred to as "Shunyou Logistics") was established in 2008 and has served more than 100,000 cross-border e-commerce companies. Cross-border sellers including Baoshijia, Yibai, and Saiwei are all its core customers. It is well-known in the industry for its fast timeliness, high cost-effectiveness and good reputation.

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