16-year-old freight forwarder went bankrupt? The company involved urgently refuted the rumor

A seller complained: "It is no exaggeration to say that there is a bomb every day in the current cross-border logistics circle." Nowadays, in the entire cross-border circle, whether it is freight forwarders or sellers, they have been frightened by the continuous bombing incidents.

Some industry insiders said that the frequent collapse of freight forwarding companies will certainly lead to panic and a crisis of trust in the market, but on the other hand, it also shows that problematic companies are being exposed at an accelerated pace, which may not be a bad thing.

However, sellers are now in an important stage of preparing for the peak season in the second half of the year, and no one wants to step on a landmine. Therefore, it is difficult not to pay attention to such news. Especially when the news of "accidents" of those old freight forwarding companies comes, they are even more on pins and needles, worrying that the freight forwarding companies they cooperate with also have similar hidden dangers, thus affecting the sales plan and revenue of the peak season in the second half of the year.

16-year-old freight forwarder accused of bankruptcy

Recently, a banner was hung at the door of Guangzhou Feite Logistics Co., Ltd. (established in 2008) with words such as "fraud and money-stealing", "black-hearted freight forwarder", "malicious changes", "scamming money and withholding goods", etc., which strongly stimulated the sensitive nerves of sellers and other freight forwarding colleagues.

Therefore, it didn’t take long before the news of “Feite Logistics’ bankruptcy” spread quickly and widely.

“I often use their company, how come it suddenly collapsed?” “It’s a well-established company, what happened?” “If such a big company can collapse, are there any freight forwarders we can trust?” ... Various voices of doubt and speculation followed one after another.

Facing various voices in the industry, Fit Logistics quickly issued a statement to refute the rumors. As shown below:

To summarize the content of this statement, Fit Logistics mainly emphasized three points:

1. The incident mentioned in the banner and the persons involved in the incident have no legal cooperation relationship with Fit Logistics, and Fit Logistics is not aware of the specific circumstances of the matter.

2. The company has always operated legally, in compliance with regulations and with integrity.

3. We have reported the case to the local public security authorities as soon as possible and reserve the right to pursue legal liability against the relevant responsible parties in accordance with the law.

Recently, the relevant person in charge of Fit Logistics also made further analysis on the above rumors.

It is reported that in order to expand into the Dongguan market, Fit Logistics and another company (Twelve Logistics) jointly established a joint venture freight forwarding company (Hong Yongli) last year. However, as the Dongguan market has never developed, Fit Logistics decided to withdraw its shares in February this year. However, since the joint venture company owed Fit Logistics a lot of money, it took a lot of time to deal with this matter. It was not until July 31 that the withdrawal of shares was successfully handled.

"After our investigation, we found that some of the people who came to cause trouble were employees of Hong Yongli, employees and customers of Twelve Logistics, and the other part were freight forwarding colleagues who had no business dealings with either of them." The person in charge said that they support reasonable and legal rights protection actions, but will investigate to the end any behavior that deliberately interferes with the company's daily operations and seriously damages the company's corporate image and business reputation.

He said that the company's legal team will file lawsuits against those who come to cause trouble and those who maliciously slander the company, and will assist the public security organs in dealing with the malicious troublemakers.

At the same time, he also revealed that in recent years, the company's operating conditions have been good and its performance has continued to grow. Last year, the company's revenue reached more than 3 billion yuan, and it is expected to achieve a significant increase this year.

Although the rumor about Fit Logistics’ bankruptcy has been debunked, it is an indisputable fact that freight forwarding companies have frequently collapsed since this year.

Problematic freight forwarders are being exposed at an accelerated pace

There is no doubt that the freight forwarding industry is currently in a high-risk state. Companies have gone bankrupt one after another, Zhejiang went bankrupt, Shanghai went bankrupt, Shanghai went bankrupt, and Shenzhen went bankrupt. Some companies cannot transfer goods due to broken capital chains, some are in trouble because of leaking accounts, and some run away with the money because they cannot afford to compensate for the seizure of containers.

For sellers and other freight forwarders, these are all minefields, and stepping on any one of them can bring significant losses. Especially during the peak season, for sellers, once they encounter this, it is possible that this great opportunity to make money in the second half of the year will be ruined.

However, the frequent collapse of freight forwarding companies is not all bad. At the very least, problematic freight forwarding companies are being exposed at an accelerated pace.

It is undeniable that such frequent problems will bring some negative effects. First, it may cause panic and a crisis of trust in the market. When a large number of freight forwarding companies have problems, customers may doubt the entire freight forwarding industry, thus affecting the reputation and development of the entire industry.

For example, some customers may reduce their cross-border trade business or choose other modes of transportation because they are worried about the unreliability of freight forwarders, which will have a certain impact on cross-border trade that relies on freight forwarding services.

Secondly, frequent problems may lead to short-term turbulence in the industry. The closure or investigation of problematic freight forwarding companies may trigger a series of chain reactions, such as cargo backlogs and interruptions in the transportation chain, causing economic losses and operational difficulties for related companies.

But on the positive side, the frequent problems of freight forwarders also mean that some problematic freight forwarders are accelerating their collapse, which, to a certain extent, helps to eliminate the "bad apples" in the industry. For example, some freight forwarders that violate regulations and provide extremely poor service quality have been noticed by the market and regulatory authorities because of their frequent problems, so they can be dealt with and eliminated in a timely manner, freeing up more market space and resources for compliant and high-quality freight forwarders.

Earlier, Yien.com reported that as of June 8 this year, there were a total of 34,142 international freight forwarding companies with "abnormal operations" in the country (data source: Qichacha). This shows that there are quite a few freight forwarding companies with problems.

However, the freight forwarding industry has obviously reached a period of elimination and elimination. Some companies with weak risk resistance, illegal operations, poor service quality, and lack of core competitiveness will gradually be eliminated by the market in the future. This is an inevitable law of industry development and a process of self-purification and optimization of the market.

In this process, freight forwarding companies that operate in compliance with regulations, provide high-quality services, have innovation capabilities and strong risk resistance will stand out and lead the industry towards a healthier and more sustainable direction.

In conclusion: In the past few years, due to the rapid development of the cross-border e-commerce industry, a large number of people have rushed in to provide freight forwarding services for cross-border e-commerce sellers. According to Qichacha data, there are as many as 39,000 results containing the keyword "international freight forwarding", which have been established for 1 to 3 years and are registered as existing or in operation. However, it is well known that the entry threshold for freight forwarding is not high, which makes the quality of enterprises in the industry uneven. Some enterprises may lack the awareness and ability to operate in compliance, and violate regulations in customs declaration, transportation and other links. Once investigated, it may cause a series of problems. It is hoped that sellers will be more cautious when choosing freight forwarders, and not just be attracted by low prices, but should comprehensively consider the reputation, experience, service quality and compliance of freight forwarding companies. It is also hoped that after this round of reshuffle, the cross-border logistics industry will be able to eliminate those bad freight forwarding companies and promote a healthier and more standardized competitive environment for the entire industry.

FIT Logistics