It Is Difficult To Raise Freight Rates By Air Freight. How Can 5 Times Cross Border Logistics Be "Robbed"?

Under the epidemic, international flights dropped sharply, positions were scarce, and air freight rates rose. As a cross border industry chain, the situation of cross border logistics affects the whole industry.

What worries the industry is that even under the policy of encouraging customers to change goods, the export capacity is still very tight, and the freight price is still daunting. For today's air transport capacity can carry the weight of cross-border logistics, the difficulty of cross-border logistics and how to save the industry's concern, cross border logistics service founder Li Wei, the founder of the European express, answered the media one by one.

　　 "Customer to goods" can not solve the current problem.

According to Li Wei, from a number of open data, in the current state to encourage customers to change goods, compared with no epidemic, cargo aircraft has 17% growth data, but in fact, cross-border electricity supplier goods are still backlog serious. Therefore, "this 17% refers to the increase in cargo throughput or the increase in income, which is still doubtful."

Li Wei believes that if there are some small details, many reports are inconsistent with the real situation of the industry. Cross border electricity providers are sensitive to logistics timetable, and exports depend mainly on airplanes instead of cargo planes. If 17% of the data refer to the increase in the revenue of cargo aircraft, based on the reality of soaring air freight rates and the consideration of cargo carriers actually carrying the cargo in the market, the surface growth data actually "cover up" the fact that the volume of cross-border e-commerce exports is decreasing, and when the former cross-border electricity supplier industry is in a deteriorating situation, it will not be able to solve the problem only by the transfer of passengers. 。

"We know that there is no commercial benefit in front of life, and we can fully understand and support it as a logistics practitioner." Li Wei said that nowadays, a large number of cargo planes are almost commandeered by the state, and are used to transport epidemic prevention materials to support countries all over the world. Therefore, the freight transport capacity that really uses cross-border e-commerce products exports should be less than before.

From the point of view of Euro speed, freight transport is usually not the first choice in terms of its entire transport capacity, and its 90%~99% export volume is transported by passenger compartment. "Because the cargo aircraft is not flying every day, and the take-off and landing time is not the most suitable for us, plus the cargo unloading itself and the processing time of the destination International Airport is slower."

Therefore, although the cargo plane is cheaper than the air freight, the timeliness is slower than that of the airliner, resulting in the scarcity of cargo resources in the ventral cabin of the aircraft. Compared with general trade, the demand for airliners is greater for more effective cross-border electricity providers.

Li Wei said, this is also in March 29th the implementation of the international passenger flights after the urgent reduction, even if the government after advocating the transfer of goods, still can not solve the main reason for the export logistics pressure. Besides, there are still some objective factors to consider, such as:

First, cargo aircraft occupies a rather small proportion in the entire cargo aviation industry. At present, some mainstream airlines are mainly based on passenger transport.

Two, the aircraft cargo machine is not really turning the passenger plane into a cargo plane, but the airliner is not manned. Therefore, the upper part of some of the airliner transferred to the cargo plane is still unable to be used. The cargo still can only use the ventral cabin of the aircraft, but due to the high market price, the flight frequency is not enough.

Three. The frequency of outbound passenger flights has been sharply reduced. The day before the epidemic is one or two shifts per day, only one week after the restrictions.

"Even if the airline can fly five cargo planes a week, the actual opening to the market may be one or two. It is not easy for us to temporarily apply for additional positions, which can grab four hundred or five hundred kilos of shipping space, but this is really not urgent for us to have more than a dozen or 20 tons of goods that need to be transported by logistics providers." Li Wei said, "at present, overseas transportation is seriously disturbed by the epidemic situation, and transportation by sea and railway is too small for the cross-border electricity supplier industry."

On the whole, the overall air transport capacity of cross-border electricity supplier exports has dropped significantly. Meanwhile, the demand for online shopping in developed countries is blowout. In the past two weeks, the rise of 30% to 50% per week, coupled with the occupation of aviation logistics resources by epidemic prevention materials, has caused a serious backlog of other goods.

　　 "Every day I don't know what will happen next."

Today's cross border logistics dilemma can be snooping one or two from the backlog of cargo providers and air freight.

According to Li Wei, the current export freight market is a typical seller's market. Whether it's airliner, cargo plane or charter plane, Europe speed can only try its best to seize high-quality resources in very limited market options.

"The situation of different ports is different, and the policy of the country is not buffered, and we are caught off guard all of a sudden. The rolling backlog will be normal in a short period of 1-2 weeks. In the past, the goods of Europe Express have required zero backlog." Li Wei said that the resources allocation of airlines around the world is different, but the main problems are two or three days and one change.

"We don't know what will happen next day. For example, when the goods have been matched, the notice of flight cancellation is often received. Because pilots need to be isolated when they travel around, they sometimes receive the situation that the unit is not equipped to cause flights to be unable to fly.

The most direct consequence of insufficient positions is the soaring price of positions. Li Wei pointed out that, at present, a large number of goods backlog, air freight has been more than 5 times, the European line, a kilogram of freight has risen from more than 20 to more than 100 yuan.

It is worth noticing that, because the goods of the electricity supplier are generally light and volume (light to bubble ratio), the airlines used to have little transportation in the off-season, even if the goods were lighter, they were acceptable. But in today's "land of gold and gold", airlines are unwilling to accept light goods and carry out heavy volume charging.

"For some of the larger commodities, this means increasing the cost in disguised form. For example, the original one hundred yuan a kilogram of goods, now according to the space to calculate, its volume may occupy 7 times of the land, equivalent to 700 yuan a kilogram to transport. "

The uncontrollability of freight charges leads to high uncertainty in the industry, and logistics providers and sellers are in a "turbulent" loss change.

"All the time, contracts for signing contracts with airlines are now invalid. Having worked for over 20 years, it was the first time. Li Wei said, at present, the operational risk is also soaring. In the predetermined location, because of the high price, for logistics companies, in fact, do not know whether the follow-up can receive the goods.

"For example, when we sell the position, the price is 10 yuan, but when the goods come in and fly out of real estate, the cost of the shipping company may have turned into 15 yuan, which is a direct loss. And if the seller can not afford the high freight rate, the selling price is lower than the cost, which will lead to the cancellation of the order stop loss. Then the logistics provider will not be able to receive the goods. We can hardly use the shipping space that we have worked so hard to get.

"Companies know what cash flow means." Li Wei said frankly that after many years of employment, it was the first time that he needed to book a warehouse in advance with cash. In the past, he used the form of account payment. This also causes great pressure on the cash flow of logistics providers.

In addition, the air freight cost is one price per day, or even "one price at a time". According to the logistics industry standard, the price changes are generally told seven days in advance. "If we constantly inform the seller of the new freight price every day, the ecosphere will be chaotic, so many times, we will receive a notice of temporary price increase, and try hard to carry it out, so that we can try to adjust the selling room for the seller.

From the seller's point of view, because of the frequent price changes and usually considering the problems of cost, competition, inventory and so on, they often can not follow the freight price changes to adjust the selling price of products in time.

For example, the seller sold the goods at a price of 10 yuan after the original freight cost was calculated, but when the real shipment was made, the air freight rate had increased several times, but at that time, the seller could not easily cancel the order when the seller had finished the sale, and the seller could only "bite" himself.

At the same time, frequent price adjustment makes sellers have pressure on their own management. And if the goods are backlog, there will be losses. No matter what the profit margin the seller will set, the profit of the industry has been reduced to freezing point. In fact, the seller will not only make money but also lose money.

　　 Cross border e-commerce logistics urgently needs rescue measures

"What is most afraid now is that the electricity supplier will not be able to survive. The whole industry is particularly hard now. Everyone is biting their teeth, losing money, and risking a lot of risks. Every day they struggle in this uncertainty. They always feel that doing our best and doing what we can do is the most significant contribution to the social and economic development." Li Wei said that freight prices had been tripled before the country had no restrictions on shipping, but now it is more difficult.

She said that the current foreign trade industry is just resuming work, has not really resumed production, is also facing the severe situation of the cancellation of orders, compared with cross-border electricity providers in fact, there is still much room for survival. However, many cross-border electricity providers are not optimistic. "It is mainly because of the current industrial policy of the whole country that people can't do anything or have goods to sell."

"At present, the price of air cargo is rising, and the overall export shipping price is rising. The current selling price is not simply based on cost accounting." Li Wei said, at the same time, foreign airlines airliner prices doubled, while some subsequent prices rose because of the overall market. Therefore, from this point of view, "how much of the domestic aviation price increase is a cost factor, and how much is the supply and demand mismatch factor is open to question."

And in Li Wei's view, when airlines use airliners as cargo planes, they are not remaking, and the original space and cost have not changed. But the main reason for their increasing the logistics price is that, based on the current civil aviation authority's restrictions, even if there is no passenger in the return journey, the passenger traffic revenue of the airline's entry and exit will be greatly reduced, despite the recent decline in fuel prices. But the cost can only be transferred to freight charges.

And the rise of logistics costs will eventually be transferred to sellers, so that they will have to increase the unit price of products. At present, some sellers "gamble" is that in today's global scarce resources, product prices can continue to sell. But for some sellers who rely on the sale of non essential necessities, the increase in the price of the products will bring more negative impact on the logistics costs. "Selling accounts may be a loss, not selling inventory backlog is also ray."

"At present, the product procurement and type of cross-border electricity suppliers can be adjusted according to market demand. The first advantage of China's supply chain and sales side is still very obvious. But the main point of the whole cross-border electricity supplier is logistics and lack of capacity. Therefore, at present, Li Wei's most urgent demand is that he hopes that the state can control the cost of the whole shipping, and support the cross-border electricity supplier logistics, so that the current situation can not be allowed to develop.

For example, for cross-border exports of goods exported to the 9610 mode, to give Airlines special subsidies, freight control at a reasonable level, and ultimately reduce the cost of cross-border electricity providers, which means that the electricity supplier means more goods can be sold, will also promote the entire industry capacity resumption.

Li Wei believes that in the face of the current problems, although there are no national players in the cross-border electricity supplier industry, it is more urgent for the state to stand on a high level to assess the role of cross-border electricity providers in the recovery of China's economy this year, so as to tilt or support the industry, which is also a salvation for the foreign trade and aviation industry. "In fact, there are so many goods that can not be sent out now, it is a flourishing sight. We should seize the opportunity to make the cross-border electricity providers develop rapidly."

Li Wei said that all flights to the world are similar now, and there are many other reactions involving other industries. But they can only pray that the epidemic will pass as soon as possible. "Tough times, every enterprise in the cross-border electricity supplier industry will not give up and bite the bullet and stick to it," he said.