Views: 0 Author: Site Editor Publish Time: 2018-01-08 Origin: Site
In the past 2017, the most popular is the explosion of upstream aviation. Many of my articles that have been written all over the circle of friends are closely related to "liquidation".
Since it is difficult to ease the tension of upstream air capacity in the short term, air freight forwarding should be a profitable industry!
Why do you say that the big reshuffle of air freight forwarders is coming?
1. There are fewer and fewer customers
In the traditional air freight forwarding model, there are mainly two types of customers under normal circumstances. One type we call direct customers is the so-called traditional manufacturing factories or trading companies in the downstream of the industry. Another type of peer logistics company in the middle of the industry.
In recent years, with a large number of manufacturing industries leaving the Pearl River Delta one after another, the number of entire factories has actually been greatly reduced. Some of the factories that continue to stay are also transformed into cross-border e-commerce. Not to mention trading companies. The first batch of cross-border e-commerce companies started out as trading companies.
After the original customers have transformed into cross-border e-commerce, one of the biggest changes is the fragmentation of trade orders, and the demand for small package express line logistics continues to rise. This puts forward higher requirements for logistics companies' collection capabilities, network layout, IT systems, and sorting operations.
The traditional air agency model has always been to only do port-to-port air freight. Responsible for customs declaration, booking and some ground board operations, and I am used to the relatively simple operation mode of large cargo. In fact, it is not advantageous for small-ticket cargo operations to raise a large number of operators, build a large sorting site, connect various systems, and complex cost structure systems.
A large number of cross-border e-commerce sellers are actually concentrated in logistics companies engaged in small packages, express delivery, and dedicated lines. For air freight forwarders in the upper reaches of the industry, it is not very feasible for tentacles to directly penetrate into the terminal e-commerce seller customers. Because e-commerce sellers need more of a comprehensive logistics solution, rather than a single point-to-point transportation.
All air freight forwarders are facing a common situation: the original factory-type customer group is changing into today's special line and small package logistics companies. At present, there are only a handful of logistics companies that are engaged in special lines and small packages on the market. From this level, it actually means that the number of customers facing all air freight forwarders is getting smaller and smaller.
2. The volume of a single customer is getting bigger and bigger
A dedicated line company must have at least a few tons of cargo on hand every day, otherwise the cost of air transportation, customs clearance, and delivery will not come down at all. There are also several private line companies with a slightly larger volume, with dozens or even dozens of tons per day.
The rapid development of cross-border e-commerce has driven the continuous surge in the volume of these special lines and small package logistics companies on the market. Although the number of customers is getting smaller and smaller, the volume of individual customers is getting bigger and bigger. The end customers are becoming fewer and fewer, and the share of peer customers is increasing.
Recently, many charter companies and air freight board agents from the upper reaches of the industry have come to our door. Many people asked me to help introduce some private line companies as soon as they opened their mouths. In fact, I counted with my fingers, and there are actually only a few private line companies with a small scale on the market.
When more and more air freight forwarders are supported by several large dedicated line companies, it means that the competition is actually more transparent and fierce. Because the sales policies and costs that airlines give to all agents are almost the same.
In the case of the same cost price, the ultimate carrier is the airline. You say that your service is good, but in fact, it is often a false proposition. The only thing that can compete with each other is the human resources accumulated over a long period of time between each air freight forwarder and airline.
3. The industry reshuffle has begun
The dedicated line company, which holds a large number of end-customer resources and sources of goods, continues to grow with the volume. A small part of them will go directly to the upstream of the industry for integration, and choose to directly connect with the airlines themselves. And more dedicated line companies still need air freight forwarders as an intermediate bridge to connect with airlines.
Many private line companies directly serve as end customers, but in fact, they all have billing periods, and their own cash flow is actually relatively tight. If you directly connect with the airline, you need to pay a large amount of deposit first, and the settlement cycle is generally about 15 days. So from the perspective of capital turnover, it is not cost-effective.
In the future, more air freight forwarders will actually act as a role for the special line company to advance funds and operate as an agent. It has become an outsourced capacity procurement department of the special line company. Help the dedicated line company to integrate more aviation space board resources and provide agency operations for booking and making boards.
The profiteering period of the entire air freight forwarding industry has come to an end. Although the air freight volume driven by cross-border e-commerce in the entire market will continue to rise, in fact, the risk of the entire industry continues to increase. The rise and fall of a core dedicated line customer directly determines the survival of this air freight forwarder.
Dazhuang, a first-class air freight forwarder, has entered the stage of scale competition in which price is exchanged for quantity. A large number of secondary and even tertiary air freight forwarders who rely on reselling air freight prices to earn the difference are rapidly dying out. In the future, the number of air freight forwarding companies will be greatly reduced, and the industry reshuffle has come.