Suddenly closed down, another freight forwarding company went bankrupt!

For freight forwarders, this summer is particularly cold ...

Multiple freight forwarders have been hit by a series of scandals. According to the notices they issued, some have stopped accepting goods, and some have completely stopped operations, leaving a bunch of sellers "craning their necks" waiting for compensation, but they have not received any news. This year, the freight forwarding industry has been extremely involuted, with various routines appearing frequently, and a large number of freight forwarders have been swept out. Industry insiders lamented: "The legitimate freight forwarders are struggling to survive, while the bad freight forwarders are making a lot of money!"

Another freight forwarder went bankrupt and suddenly cut off business

In June this year , Amazon seller Li Mengtian sent 169 boxes of goods worth more than 400,000 yuan through Guangzhou *Yi and *Fan (which has a cooperative relationship with *Yi, and the 36 boxes Li Mengtian sent through *Fan went through *Yi's channel) . A month later, she found that the status of the goods had not been updated, and the freight forwarder told her that there was a problem with the UPS account and the goods were detained. Later, 24 of the 169 boxes were signed for normally, and there was still no news about the remaining 145 boxes.

If these goods were lost, Li Mengtian would suffer a significant loss overall. More than 30 sellers were also affected , and the total amount of goods seized by them was nearly 1,000 boxes.

After the goods were seized, the sellers went to *Wing Company to communicate and discuss compensation matters.

Li Mengtian said that *Fan has already compensated 90% of the value of the goods. Last week, she went to meet the boss of *Ying and was told that *Ying's US line business would be cut off and would not be continued. However, the company's other main business would still be carried out normally. *Ying is a company of this freight forwarder that does US line business, which means *Ying has been "closed".

On the specific issue of compensation, *Yi and the sellers have different ideas. Li Mengtian said that *Yi's previous plan was to compensate according to 100 US dollars per box, while the sellers' demand was to compensate according to the value of the goods, because the agreement *Yi had signed with the sellers before was to compensate according to the value of the goods.

As for Li Mengtian's situation, if she follows *Yi 's plan, it will be far from her own value.

The sellers requested compensation based on the value of the goods, but *Yi did not agree and promised to give a reply within a week. After the promised time, *Yi has not yet given a compensation plan, and the sellers are still waiting for the result.

Arien, a senior logistics expert , said that sellers usually sign a compensation agreement with freight forwarders when shipping goods. Most people ask for compensation for the value of the goods, and some also ask for compensation for the sales price. The volume of goods on the market is small, and many freight forwarders sign agreements for the sake of volume.

This kind of operation is terrifying when you think about it carefully. For example, if you receive 500KG of goods, the current market price is very transparent, and the profit is about 500-1000 yuan. The value of 500KG of goods may be hundreds of thousands for a high unit price, and tens of thousands for a low unit price. It is very obvious that the profit is not proportional to the risk.

In Arien's opinion, the compensation agreements signed between freight forwarding companies and their seller customers are extremely risky, which is one of the reasons why many freight forwarding companies go bankrupt.

As the cold weather is pressing, many Shenzhen freight forwarders have collapsed

Due to various problems, the number of freight forwarding companies that have gone bankrupt has increased significantly recently.

This week, Shenzhen freight forwarding company *Long issued a notice to all partners : it will suspend the collection of international express export business channels at 14:00 on August 26, 2023. Customers are requested to plan shipments in advance. All existing business and subsequent financial, customer service and other issues will be properly resolved before September 30, 2023.

This freight forwarder explicitly mentioned that it has been in business for ten years and is a long-established company.

According to industry insiders, although the company has been developing for a long time, it is not very big. The international express export business that has been voluntarily suspended this time is far less involuntarily than other channels such as international shipping. The company is unable to support this business. The reasons must include not making money and the worrying operating prospects.

Another industry insider said that the company's suspension of business was expected. The logistics market is not doing well this year and no one will do a business that does not make money.

At the same time, Shenzhen *Tong also issued a notice recently: the company will stop operating completely! In the future, those who have business dealings with the company's former staff and have certain interests have nothing to do with the company. The subsequent loaded goods will be dispatched in time and will be responsible to the end. The goods that have not been loaded and are being delivered now have nothing to do with the company.

The company also informed customers who have not paid the freight to arrange it in time. If the freight is not paid, the back-end delivery service of the goods will have to be suspended until the freight is paid.

2023 is a very difficult year for freight forwarders! Not long ago, Shenzhen *Zhi also said that the cargo volume could not be increased, the profit dropped to the freezing point, and it was also trapped in triangular debts. The receivables could not be collected in time, the company's profits could not support daily expenses, and the losses were serious, and the assets were insolvent. All debts will be settled through legal channels. In order to reduce operating expenses, *Zhi also plans to move away from the previous address.

According to an insider, in addition to the above companies, there are many logistics companies that have closed down this summer, and many have reduced warehouses and laid off employees. The freight forwarders that have announced the closure of business, including *Yi and *Zhi, are quite responsible. If they can't continue to play, they will stop playing. They can't cheat or deceive. Some freight forwarders just run away with the money and goods without any explanation.

Conscientious freight forwarders are being squeezed out , and the industry development needs reasonable profit support

The simultaneous collapse of many freight forwarding companies reflects the huge chill in the logistics industry.

Arien said frankly: " This year is the most difficult year for logistics people ! Generally speaking, cross-border sellers are having a hard time. Freight forwarders obviously feel that they are in a state of panic. When there is no goods in the market, freight forwarders use all kinds of tricks. Receiving goods at a low price is the most common operation, but the cost is there. The consequence of playing tricks is high risk. When the existing volume or profit is not enough to support the leverage, the freight forwarder's capital chain is broken and it also explodes .

For example, a dealer doing US shipping has to pay for the first leg, the company's personnel and venue costs, the tail end costs, and the direct customer needs to advance the money. Monthly settlement is now a very normal requirement, but some sellers require settlement in March or even half a year after signing for the goods. The current market price is also very transparent. It is very good to make 1-2 yuan per kg of sea freight. Once there is a problem with the goods, the freight forwarder needs to compensate, and maybe half a year or a year of profit will be lost . "

"Nowadays, many sellers require credit terms before shipping. They also compare prices from three different suppliers and choose the one with the lowest price. They use the lowest price in the market to lower the price. The credit terms can easily be several months. If you don't have some capital, the freight forwarder will go bankrupt in minutes." Freight forwarder Aaron introduced.

Ron, a logistics expert , believes that in the current market economic downturn, cross-border sellers are trying every means to reduce transportation costs, and freight forwarders naturally have to reduce prices and profits. Some freight forwarders, in order to fill warehouses with goods without profit, receive goods at prices below cost. Three or five cabinets are profitable, but what about dozens or hundreds? The hole is getting bigger and bigger, and there is only one ending.

Frequent explosions have caused logistics professionals to face their own problems. Some unscrupulous freight forwarders have fled and changed their identities to continue to defraud, while some honest freight forwarders have collapsed in the cold winter of the market. One freight forwarder was helpless: " The internal competition is serious, and it is difficult for conscientious freight forwarders to survive ! "

According to a person with 10 years of freight forwarding experience, profits have been squeezed to paper thin! But there are always lower prices than yours. Freight forwarders need to operate in compliance with regulations and have reasonable profits to survive.

Only when the freight forwarder operates stably and does not go bankrupt, can the seller feel relatively at ease when shipping. In today's market, sellers must understand the situation of the freight forwarder before shipping, and do not blindly lower the price. Imagine if there is no profit, and the freight forwarder can still cooperate with you, then there is definitely something wrong with it.

There is never a shortage of leeks in this market, nor is there a shortage of people who reap the leeks. Sellers must think twice before choosing a freight forwarder.

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