Analysis of the current situation of international freight forwarding business in China in 2020
 Mar 04, 2021|View:626

International freight forwarding is the identity of the agent to accept the consignor's commission, through the water, land and air transport channels to provide goods international import and export transport services industry, the main business including packing, booking, transit, inspection, customs clearance, for the relevant insurance procedures, etc.

1, international freight forwarding industry chain

From the industry chain, the international freight forwarding industry industry chain upstream mainly for the container yard and packaging enterprises, etc.. Midstream for international freight forwarding enterprises, and downstream market participants are carriers (shipowners, airlines, etc.) and cargo owners.

2, international freight forwarding development stage

From the point of view of the development stage, China's international freight forwarding industry can be divided into four stages, respectively, the nascent development stage, the initial development stage, the standard development stage, high-speed development stage.

Budding development stage: this stage because the Chinese government has not yet liberalized China's import and export freight forwarding business, with the right to operate fewer freight forwarding enterprises, the central enterprise group directly under the management of China Foreign Trade Transportation Corporation as China's general freight forwarding agent. China's international freight forwarding industry is in a monopoly.

Initial development stage: In March 1988, the General Office of the State Council issued relevant documents stipulating that ship agency and freight forwarding business should be operated by more than one company. No department is allowed to impose restrictions. The document ended the monopoly of the international freight forwarding industry by China National Foreign Trade Transportation Corporation. Mainland local freight forwarding enterprises were established one after another, laying the foundation for the development of China's international freight forwarding industry.

Standardised development stage: In 1995, in order to maintain the order of China's international freight forwarding market and strengthen the supervision and management of the industry, the State Council issued the "Regulations of the People's Republic of China on the Administration of the International Freight Forwarding Industry", which effectively standardised the behaviour of China's international freight forwarding agents, the conditions for the establishment of international freight forwarding enterprises and the standards for international freight forwarding business charges, etc., which greatly promoted the development of China's international freight forwarding industry and pushed the industry to maturity gradually.

High-speed development stage: In 2001, China's accession to the World Trade Organization (WTO), China's global trade business is rapidly unfolding, China's international freight forwarding industry followed by rapid development. At this stage, a large number of foreign companies with extensive experience in international freight forwarding business have entered the Chinese market, the mainland of local enterprises continue to learn from them, the accumulation of international freight forwarding industry system management experience, China's international freight forwarding industry gradually towards professional, standardized direction of development.

3, international freight forwarding business top 100 scale

In recent years, the "Belt and Road" strategy has created a good external environment for the development of China's international trade, effectively expanding the space for the development of trade business in countries along the route. Benefiting from the "Belt and Road" strategy, China's foreign import and export trade has increased, which has greatly promoted the development of China's international freight forwarding market.

Data show that in 2015, the total business revenue of China's top 100 international freight forwarding enterprises was RMB 330.47 billion, increasing to RMB 423.588 billion in 2018. RMB 446.386 billion in 2019, an increase of 5.38% year-on-year.

4、The development of ocean freight forwarding business of international freight forwarding enterprises

From the development of the maritime business, the combined revenue of the top 50 international freight forwarding enterprises in China's maritime business reached RMB 191.595 billion in 2019.

5、The development of air freight business of international freight forwarding enterprises

From the development of air freight business, the combined revenue of the top 50 international freight forwarding enterprises in air freight business in China reached RMB 61.822 billion in 2019

6、The development of land transport business of international freight forwarding enterprises

From the development of land transport business, the combined revenue of the top 20 international freight forwarding enterprises in land transport business in China reached RMB 37.796 billion in 2019.

7、The development of warehousing business of international freight forwarding enterprises

From the development of warehousing business, the combined revenue of the top 20 international freight forwarding enterprises in China's warehousing business reached RMB 19.005 billion in 2019.

8, international freight forwarding enterprises private business development

From the development of private business, the combined revenue of the top 50 private businesses of international freight forwarding enterprises in China reached RMB116.587 billion in 2019.

9、The development trend of international freight forwarding industry

International freight forwarding is highly dependent on the international trade industry, and the development of the industry is greatly influenced by the global macroeconomic and international trade situation. Under the influence of China-US trade war and the new crown pneumonia epidemic and other environments, making China's international trade market unstable, resulting in a reduction in demand for international freight forwarding business. In order to ensure the long-term development of enterprises and enhance the level of market competition, in 2020 China's international freight forwarding enterprises gradually transform to platform, digital, ecological and intelligent, and the scope of services and service levels continue to improve.