How Freight Forwarders in China Can Expand Their Operations
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According to a Research and Markets report, the transportation and logistics sector in this country is projected to sustain a compound annual growth rate (CAGR) of over 6% from 2022 to 2027. China is emerging as a formidable force in global transportation and logistics, attributed to factors such as robust government regulations, excellent infrastructure encompassing road, rail, and transportation, an extensive network of warehousing and storage facilities, and a resilient IT infrastructure. For independent freight forwarders in China engaged in regular shipments to/from China, finding the right freight forwarder in China is crucial. Overcoming customs delays and other obstacles demands a reliable partner. Your ideal collaborator in China should not only navigate diverse cargo types proficiently but also secure affordable rates with ample capacity. Yet, in a country dominating global trade, choosing from tens of thousands of freight forwarders poses a challenge. Trustworthiness becomes paramount, especially given the unfortunate reputation some Chinese freight forwarders bear, engaging in fraudulent and unlawful practices that affect legitimate logistics companies.
In today’s article, we have discussed the essential reasons for securing a dependable freight forwarder in China and highlight key considerations when selecting one in the context of China.
Factors to consider before choosing reliable freight forwarders in China
Find a logistics company that is part of the best freight forwarding network
Opt for a freight forwarding partner affiliated with a reliable logistics network for unparalleled reliability. For instance, choosing a company that is a part of Globalia Logistics Network will guarantee expertise and credibility. Beyond strict admission criteria, what sets Globalia Logistics Network apart is its commitment to ‘disciplined cooperation.’ Each network member pledges to follow established rules and report any violations by other members to the Globalia head office. Non-compliance results in expulsion from the network, with the next best-qualified applicant from the waiting list taking their place in the respective territory. This ensures a culture of adherence and accountability within the network.
Therefore, by selecting a Chinese forwarder within a prestigious freight forwarding network like Globalia, you can trust in your partner’s expertise and reliability.
When selecting a logistics company in China, prioritize verifying the firm’s expertise in customs clearance. Top-notch freight forwarders not only provide customs brokerage services but also ensure accurate cargo classification and duty charges. Specialization in the specific type of cargo you’re handling is crucial; for instance, if dealing with perishables, opt for a logistics company with expertise in this sector. Their knowledge and experience enable precise HS code selection and comprehensive guidance on necessary paperwork, ensuring a smooth transportation process. In essence, evaluating a logistics partner’s market experience should be your foremost consideration.
Choose a freight forwarder with extensive local knowledge
International freight shipping comes with inherent complexities, often requiring solutions such as emergency trucking, specialized equipment, or warehousing services in remote Chinese districts. A freight forwarder in China with in-depth local knowledge is adept at navigating these challenges. Seek an experienced logistics service provider with robust local contacts to efficiently address crises and manage emergency situations. It’s crucial that your logistics partner not only has experience and contacts in major cities like Shanghai, Shenzhen, or Beijing but also extends coverage to rapidly growing cities such as Hefei, Chengdu, Nantong, Xi’an, and beyond.
The forwarder must have good relationship with carriers
In the realm of shipping cargo to/from China, fostering strong relationships with carriers is a significant advantage. The top freight forwarders in China typically maintain favorable connections with airlines such as Eva Air, Korean Air, Cathay Pacific, and Air China. Additionally, they should have amicable associations with ocean carriers like One, Cosco, Evergreen, and Wan Hai. Forwarders with solid ties to these carriers often secure pre-booked space arrangements, guaranteeing continuous capacity availability for your cargo. Moreover, these relationships contribute to obtaining competitive air or ocean freight rates for your shipments.
How freight forwarders in China can expand their operations and secure international projects
Small and mid-sized freight forwarders in China can strategically expand their global presence by joining a renowned freight forwarding network. Joining the Globalia Logistics Network, for instance, enables companies to establish an international footprint, strengthen their brand recognition, forge new partnerships, and secure additional business opportunities. As a Globalia member, the company gains the following advantages:
Become the only representative of your area of operation
Globalia members serve as exclusive representatives of the port or city in which they operate. Simply put, Globalia limits its membership to just one independent freight forwarder in each of the 472 main ports and airports worldwide. These members function as integral components, essentially operating as branch offices of the Globalia Logistics Network within their territory.
Receive sales leads from over 215 partners
All Globalia members are required to contribute a share of their shipments to fellow members, facilitating the exchange of new projects and sales leads throughout the entire network. Despite this obligation, members retain the flexibility to continue working with their existing logistics partners outside of the network.
Moreover, every year Globalia organizes an in-person meeting meeting of freight forwarders where members sit face-to-face with their network partners to hash out the details of future collaborative projects. Globalia’s 5th Annual Meeting will be held in Bali, Indonesia, from 17th to 19th April 2024.
Become a digital freight forwarder
Globalia empowers its members to function as digital freight forwarders through a suite of free online tools. It is the first logistics network to launch a member-exclusive TMS- FreightViewer. Globalia’s FreightViewer offers a digital infrastructure enabling members to generate quotes within seconds. In essence, this program positions network agents to stay one step ahead of their competitors.
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