Characteristics of 1. International Freight Forwarders

International freight forwarding is the international freight forwarding agent, refers to the identity of the agent to accept the owner of the international transport commission, between the owner and the actual carrier, through water, air, land and other transport channels to provide goods import and export transport services, the scope of business includes packing, booking space, transshipment, customs clearance, inspection, for relevant insurance procedures, etc.. International freight forwarders are the glue of cross-border trade, responsible for integrating the resources of all parties to achieve compliance, and their importance is becoming more and more prominent in the increasingly complex environment of the international cargo supply chain. According to data from the Champ Consulting Group, 2022The annual global trade volume reached 32Trillion dollars, up 10.6 percent year-over-year. Among them, the trade volume of goods accounted for 25Trillion dollars, service trade accounted for 7Trillions of dollars. Estimated 2023Global trade will grow by 3.3 percent inReaching 33.Trillions of dollars.

International freight forwarders have the following three characteristics:

Intermediary: International freight forwarders are the intermediary between cargo owners and demand sides, and need to do a good job of coordinating and allocating capacity resources, so they face the risk of excess or shortage of capacity resources and floating freight rates. In recent years, international air and sea freight prices have fluctuated significantly due to the mismatch between capacity supply and demand and the international situation. For example,2020The new crown epidemic in 2010 led to a significant reduction in global flights, a strain on air transport capacity and a significant increase in air transport prices;2021The Suez Canal blockage in 2010 led to chaos in the global shipping order, and shipping prices continued to rise. These factors will affect the cost and benefits of international freight forwarding enterprises.

Integration: International freight forwarders need to integrate the capacity of all parties and provide a package of agency services to meet the different needs and expectations of customers. International freight forwarding enterprises should not only provide basic booking, customs declaration, transportation and other services, but also provide value-added services such as warehousing, distribution, insurance and finance, as well as professional services such as cross-border e-commerce logistics, international engineering logistics and extra-large special logistics. International freight forwarding enterprises need to make appropriate plans according to different cargo characteristics, transportation modes, destinations and other factors to make full use of loading space, reduce the risk of transportation damage, and improve transportation timeliness and safety.

Internationalization: International freight forwarders need to withstand international market fluctuations, exchange rate fluctuations and other risk factors, with cyclical characteristics. The demand side of international freight forwarding is closely linked to the rise and fall of the global macro-economy, and any factor that may lead to fluctuations in the international market, policy adjustments or changes in the trade pattern will have a significant impact on it. For example,2008The financial crisis and2014The European debt crisis in 2009 all led to a contraction in global trade, affecting the demand for international freight forwarders;2018Sino-US trade friction and2020The new crown outbreak also impacted the global supply chain and affected the international freight forwarding business. In addition, exchange rate fluctuations can also have an impact on the revenues and costs of international freight forwarders, especially for shipping operations that are settled in US dollars.

2. Global and China Market Size

Global market size: According to data from the Champ Consulting Group,2022The global international freight forwarding market reached1.2Trillions of dollars, year-over-year growth14.3%. Among them, shipping is the main business of international freight forwarding, accounting for the size of the market.58%, about6960Billions of dollars; air freight is a secondary business of international freight forwarders, accounting for the size of the market.28%, about3360billion U.S. dollars; land transportation is an auxiliary business for international freight forwarding, accounting for the size of the market.14%, about1680Billions of dollars. Expected2023The size of the global international freight forwarding market will grow throughout the year.5.8%, reach1.27Trillions of dollars. The proportion of sea, air and land transport will be respectively.57%、29%and14%。

China market size: According to data from the Shangpu Consulting Group,2022The scale of China's international freight forwarding market reached1.7Trillion yuan, of which sea transportation accounts for about78%, air transport accounts for about16%, land transportation accounts for about6%. Maritime transport continued to be the main business of international freight forwarders, while air and land transport increased. The maritime business benefited from the growth of our imports and exports with our major trading partners such as ASEAN and the European Union, andRCEPImplementation of the Agreement. The air transport business benefited from the country's high volume of cargo and mail traffic on international routes during the epidemic, as well as the rapid development of cross-border e-commerce logistics. The land transportation business benefits from the trade cooperation between China and the countries along the "Belt and Road Initiative" route, as well as the construction of the inland container intermodal transport system.

3. competition pattern

Global competition pattern: the global international freight forwarding industry competition pattern is more scattered, the head of the enterprise market share is low, but with scale effect and brand advantage. According to data from the Champ Consulting Group,2022The top five global shipping forwarders were Dexun (DHL）、Kuehne Nail、DSV、DB SchenkerandExpeditors; The top five global air freight forwarders are respectively De Xun (DHL）、Kuehne Nail、DSV、DB SchenkerandUPS. These head companies enhance their competitiveness through mergers and acquisitions, service innovation, and digital transformation. For example,2019YearDSVAcquisitionAnalpBecome the world's fourth largest international freight forwarding enterprises;2020Nian De Xun (DHL) launched the world's first AI-driven smart maritime platform--myDHLiProvide real-time cargo tracking, quotation, booking and other services;2021YearKuehne NailwithAlibabaReach cooperation to provide one-stop logistics solutions for cross-border e-commerce customers.

China's competitive landscape: China's international freight forwarding industry competition pattern is also more fragmented, the head of the enterprise market share is low, but with localization and policy advantages. According to data from the Champ Consulting Group,2022The top five Chinese freight forwarders were COSCO Shipping Logistics, Sinotrans Changhang, Sinotrans DHL, Sinotrans Air Transport and Sinotrans Container; the top five Chinese freight forwarders were Sinotrans Air Transport, Sinotrans DHL, COSCO Shipping Logistics, Sinotrans Changhang and Shunfeng Express. These head enterprises enhance their competitiveness by expanding network coverage, improving service quality and strengthening policy coordination. For example,2020COSCO Shipping Logistics has more1000offices, covering200various countries and regions;2021In the year, Sinotrans Air Transport obtained the first batch of international freight forwarding qualifications approved by the National Development and Reform Commission for cross-border e-commerce comprehensive pilot areas, which can provide more convenient and preferential services for cross-border e-commerce customers.

4. development trend

Efficient: The international freight forwarding industry will pursue higher efficiency and improve service levels by optimizing processes, improving technology, and reducing costs. For example, international freight forwarding companies will use big data, cloud computing, blockchain and other technologies to achieve information sharing and transparency, and improve cargo tracking and early warning capabilities; international freight forwarding companies will use artificial intelligence, machine learning, Internet of Things and other technologies to achieve intelligence And automation, improve decision-making and execution capabilities; international freight forwarding companies will use platformization, standardization, modularization and other methods to achieve resource integration and optimization, and improve service flexibility and reliability.

Intelligence: The international freight forwarding industry will pursue higher intelligence and improve service competitiveness through innovative models, expanding services, and adding value. For example, international freight forwarding enterprises will use online platforms, mobile applications, social media and other ways to achieve real-time communication and interaction with customers, and improve customer satisfaction and loyalty; international freight forwarding enterprises will use big data analysis, artificial intelligence recommend, machine learning optimization and other ways to achieve accurate grasp and prediction of customer needs, improve customer experience and stickiness; international freight forwarding enterprises will use warehouse management, supply chain finance, risk management and other ways to achieve the extension and enhancement of customer value, improve customer income and trust.

Green: The international freight forwarding industry will pursue higher green, and improve the sustainability of services through energy conservation, emission reduction, recycling, and social responsibility. For example, international freight forwarding enterprises will use clean energy, low-carbon materials, intelligent equipment and other ways to protect and improve the environment, reduce carbon footprint and pollutant emissions; international freight forwarding enterprises will use circular logistics, shared logistics, reverse logistics and other ways to achieve the conservation and utilization of resources, reduce waste and loss; international freight forwarding enterprises will use social welfare, employee welfare, compliance management and other ways to achieve social contribution and feedback, improve social recognition and reputation.