Current Situation, Problems and Countermeasures of my country's International Trade and Freight Forwarding Logistics

1. my country's international trade volume and freight volume

●In 2019, my country's import and export trade volume was 4.5 trillion US dollars, of which exports were 2.5 trillion US dollars and imports were 2 trillion US dollars. Exports have been at the top of the world for 11 consecutive years since 2009. At present, my country's total foreign trade accounts for about 10% of world trade. FOB exports account for 80-90%.

●my country's international trade freight volume, in terms of container throughput, my country accounts for about 25% of the world's total, and last year's container volume reached 260 million TEUs; in terms of bulk freight volume, my country accounts for about one-third of the world's total bulk cargo volume One, last year's cargo volume reached 4.3 billion tons. The world's top freight market.

2. International trade and transportation methods: more than 90% by sea, about 10% by land and air.

3. The current share of China Shipping and the market share of local freight forwarding companies

●The share of containers carried by China Shipping is about 10%, and that of bulk cargo is about 15-20%. The annual deficit of shipping revenue and expenditure is 50-60 billion US dollars.

●The market share of local freight forwarding companies is roughly the same as that of China Shipping.

●Before the reform and opening up, the share of my country's national ships carrying domestic goods reached 70-80%, and the insufficient part of the shipping capacity was solved by Sinotrans chartering.

Fourth, the current situation and problems of my country's international freight forwarding market

●At present, due to the impact of the trade war and the new crown epidemic, international trade has shrunk, and my country's international freight forwarding market is in a downturn. Generally speaking, freight forwarding has high operating costs and low profits, but it is slightly better than trading companies. Foreign trade companies are affected by the epidemic, and orders will be cancelled at any time. Some customers will not even redeem the order to pick up the goods after shipment, and the loss of the factory is even worse. .

●my country's international freight forwarding market is roughly the same as the liner shipping market, and foreign freight forwarding companies dominate the market share of more than 80-90%. As my country's current export trade terms are signed on FOB price terms, about 80-90%, the FOB buyer designates overseas freight forwarders and liner transportation.

●Sinotrans is one of the largest freight forwarders in my country and even in the world. Before the reform and opening up, it monopolized the entire international freight forwarding market in China, and now its market share has also dropped significantly. Until the early 1990s, the price difference for each standard box as an international freight forwarder was about 1,000 US dollars, and the booking commission was fixed at 5%. Today, an international forwarder can only earn dozens of dollars per box.

●From the point of view of the number of freight forwarders, before the approval system was changed to the filing system, about 6,000 companies were approved. After the filing system was implemented in 2005, the number of freight forwarders has increased. At present, there are estimated to be 30,000 to 50,000 (including the so-called second and third generations). At present, there are nearly 10,000 NVOCC-NVOCCs registered with the Ministry of Communications in my country. The team engaged in international freight forwarding in my country is huge, but in fact, it is not enough for a month. Most of the companies are small laborers for foreign freight forwarders.

●There are very few freight forwarders in my country who directly solicit goods, book space directly, and issue bills of lading (NVOCC bills of lading) directly. The vast majority of freight forwarders, including the veteran Sinotrans, have not been able to go abroad in all aspects and lack overseas networks. The vast majority of freight forwarding companies are afraid to carry out international multimodal transport door-to-door services, dare not issue multimodal transport bills of lading, and cannot afford the difference in freight costs. Although some freight forwarders have applied for an NVOCC license at the Ministry of Communications, they dare not sign an NVOCC bill of lading, just for the right to book space, let alone sign a multimodal bill of lading. At present, my country's freight forwarders are essentially not so much cargo-side agents, but rather the operation agents of foreign freight forwarders (NVOCC) in various ports in China, mainly engaged in customs declaration, inspection, inspection and short-distance land transportation services.

●For some developed countries and regions such as Europe, the United States, and Japan, there are dozens of branches or representative offices in China, all over China's major ports, and directly carry out cargo collection, LCL, booking, customs declaration and inspection declaration Inspection and short-distance land transportation and other services. Most foreign small and medium-sized freight forwarding companies that do not have a network in China carry out mutual agency business with Chinese freight forwarding companies, and entrust Chinese freight forwarding as the operating agent before loading in Chinese ports. Many mutual agency partners have established cooperative relationships on several freight forwarding one-to-one negotiation platforms held every year (such as China International Freight Forwarders Association-WCA, CCA, WIFFA, Jincheng Logistics Network and other platforms)

●The management system of my country's international freight forwarding industry is scattered. The "International Shipping Regulations" issued by the Ministry of Communications in 2002 included the NVOCC-NVOCC business, which belongs to the freight forwarding business, into the shipping management category, dismantling the international freight forwarding industry managed by the Ministry of Commerce. The management system has a very negative impact on industry management and industry development.

●For more than 20 years, my country's international shipping market has been in a state of extremely disorderly competition, lack of supervision, and unpunished violations of laws and regulations, allowing foreign liners and foreign freight forwarders to take advantage of unfair competition. The vast majority of my country's international freight market share.

●To reverse the situation in which foreign liner companies and foreign freight forwarders dominate the international trade freight market share, in addition to the basic skills of Chinese enterprises to improve their competitiveness, it is also necessary for government industry authorities to take effective measures to regulate the market, formulate industry regulations, and strengthen law enforcement. Heavy penalties are imposed on foreign liner companies and freight forwarding companies that violate laws and regulations to create a fair and competitive international freight market environment.