China’s transportation and logistics sector is expected to expand significantly in the coming years, with a projected compound annual growth rate (CAGR) of over 6% from 2022 to 2027, according to a recent Research and Markets report. This growth is fueled by robust government regulations, extensive infrastructure including road, rail, and transportation networks, a vast array of warehousing facilities, and a strong IT backbone. As China solidifies its position as a global transportation hub, the small and mid-sized logistics companies in China face the critical task of selecting the right local and international partners.
Navigating through customs delays and other challenges requires a trustworthy partner. As an independent freight forwarder, your ideal partner in China should excel in handling various cargo types efficiently while offering competitive rates and sufficient capacity. However, with tens of thousands of freight forwarders to choose from in a country leading global trade, selecting the right partner can be a daunting task. Reliability is crucial, especially considering the unfortunate reputation of some Chinese freight forwarders involved in fraudulent activities that impact legitimate logistics firms. 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.
Key considerations for choosing reliable logistics companies in China
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Find a logistics company that is part of the best freight forwarding network
When seeking trustworthy logistics companies in China, consider partnering with a logistics company affiliated with a reputable freight forwarding network for unparalleled reliability. For example, selecting a company that belongs to The Cooperative Logistics Network, ensures both expertise and credibility. What sets this network apart is its dedication to “disciplined cooperation.” Each member adheres to strict admission criteria and commits to reporting any violations to the The Coop head office. Non-compliance results in expulsion from the network, with the next best-qualified applicant taking their place. This fosters a culture of adherence and accountability within the network. Therefore, by choosing a Chinese forwarder within a prestigious freight forwarding network like The Cooperative, you can rely on your partner’s expertise and integrity.
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Choose a forwarder with extensive local knowledge
Opt for a freight forwarder in China with extensive local knowledge and experience. International freight shipping often involves complex challenges, such as the need for emergency trucking, specialized equipment, or warehousing services in remote Chinese regions. A freight forwarder with deep local expertise is well-equipped to take care of these complexities effectively.
Look for a logistics service provider with robust local contacts capable of efficiently addressing crises and managing emergency situations. It’s essential that your chosen partner not only has experience and connections 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. This comprehensive local reach ensures seamless logistics support throughout China, enhancing the reliability and efficiency of your freight operations.
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The logistics company should have a solid knowledge of Chinese Customs
When choosing a logistics company in China, it’s critical to prioritize verifying the firm’s expertise in customs clearance. The best freight forwarders offer comprehensive customs brokerage services, ensuring accurate cargo classification and duty charges. Specialization in the specific type of cargo you’re handling is also crucial. For example, if you’re dealing with perishable goods, opt for a logistics company with expertise in this sector. Their knowledge and experience will enable precise HS code selection and comprehensive guidance on necessary paperwork, ensuring a smooth transportation process. Simply put, evaluating a logistics partner’s market experience and proficiency in customs clearance should be your foremost consideration when selecting a freight forwarder in China. This expertise will play a key role in ensuring efficient and compliant international shipments.
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Your partner in China should have good relationship with carriers
In the context of shipping cargo to and from China, building strong relationships with carriers is paramount for success. Leading freight forwarders in China cultivate favorable connections with major airlines such as Eva Air, Korean Air, Cathay Pacific, and Air China. Additionally, they maintain amicable relationships with prominent ocean carriers like Ocean Network Express (ONE), COSCO Shipping, Evergreen Marine, and Wan Hai Lines.
Freight forwarders with solid ties to these carriers benefit from pre-booked space arrangements, ensuring continuous availability of capacity for your cargo shipments. These established relationships also contribute to securing competitive air and ocean freight rates, ultimately optimizing the efficiency and cost-effectiveness of your logistics operations. Therefore, when selecting a freight forwarder in China, consider their carrier relationships as a crucial factor in ensuring smooth and reliable transportation services.
How logistics companies in China can benefit by joining the best logistics network
To expand their operations and secure international projects, small and mid-sized freight forwarders in China can leverage strategic initiatives within established freight forwarding networks like The Cooperative Logistics Network. Joining reputable networks such as The Coop offers several key benefits:
Sales Leads and Business Opportunities
The Cooperative Logistics Network facilitates the exchange of sales leads and projects among its members. Each member contributes a portion of their shipments to fellow members, fostering collaboration and creating new business opportunities within the network while retaining flexibility to work with external partners outside the network.
Over 350 reliable partners across 131 countries
The Coop’s strict selection process aims to ensure that there are no weak links across the group and that the standard of all our members is universally high. Therefore, as a member you will get to work with handpicked freight forwarders from across 131 countries
Annual Meetings
The Coop organizes in-person annual meetings where freight forwarders from around the world gather to discuss and plan collaborative projects face-to-face. These meetings provide valuable networking opportunities and foster closer relationships among members. The upcoming 7th Annual Meeting in Bali, Indonesia, scheduled for May 23 to 25th offers a platform for members to explore partnership possibilities and expand their business reach.
Digital Freight Forwarding Tools
The Coop equips its members with advanced digital tools to operate as modern digital freight forwarders. One of these tools is FreightViewer, an exclusive Transportation Management System (TMS) that enables members to generate instant quotes and streamline operations digitally. This technology empowers network agents to enhance efficiency, competitiveness, and customer service in the rapidly evolving logistics industry.
In summary, joining a reputable freight forwarding network like The Cooperative Logistics Network provides Chinese freight forwarders with a strategic pathway to expand their global presence, strengthen industry relationships, access new business opportunities, and embrace digital innovation to stay ahead in the competitive international logistics market.