Among them, Fujian Province has a total of 9,981 freight forwarding-related enterprises cancelled and revoked, accounting for the largest proportion of the country, 22.4%, followed by Guangdong Province has a total of 7,521 related enterprises cancelled and revoked, accounting for 16.9%, followed by Shandong Province, Jiangsu Province, Beijing City, Zhejiang Province and other places, the number of cancellation and revocation enterprises accounted for less than 9%.
At the same time, in this year, the cumulative number of newly registered freight forwarding-related enterprises was only 15,300, a year-on-year decrease of 11.2%. The companies leaving the market are far more than nearly 3 times as many as the companies entering the market.
Looking back at 2023, the freight forwarding industry has undergone a major reshuffle. This year, there was a lot of news about the collapse of freight forwarders, which can be described as the "life and death elimination year" of small and medium-sized freight forwarders. Under the influence of many factors such as price wars, sluggish market conditions, and customer arrears of freight, they struggled and found it difficult to sustain, and eventually collapsed......
● Shenzhen Yunchuang International was forced to close its doors
On December 14, 2023, a cross-border e-commerce European line head freight forwarding company established for more than 8 years named Shenzhen Yunchuang International Freight Forwarding Co., Ltd. issued a closure announcement to all customers, employees and peers, and the company was unable to support due to the huge impact of the external situation and internal capital turnover factors, and announced that it would officially close on December 14, 2023.
In the announcement, Yunchuang International stated some reasons for the company's closure: the detention of containers in shipping and railway channels led to the dilemma of the company, and the lack of normal capital flow due to bad debts and arrears of customers.
● Shenzhen crown speed pass capital chain broken
On December 22, 2023, Shenzhen Crown Express International Freight Forwarding Co., Ltd. issued an announcement that due to the huge impact of the external situation and internal capital turnover factors, the final capital chain was broken, and the goods were also backlogged in the port, and a large amount of demurrage fees were generated, and the customer's goods could not be signed in time. It is necessary to negotiate with the customer to deal with the shipping container fee and pay in advance.
● A freight forwarding company in Jiangxi was forced to suspend business
In December 2023, a freight forwarding company in Jiangxi issued a notice of closure near the end of the year, due to the economic downturn and the particularity of the industry, it could not operate normally, and it was still unable to change the predicament in the short term after many efforts, and the company decided to suspend business from January 1, 2024 after careful consideration.
The freight forwarding companies that will fall in 2023 are far more than the ones mentioned above, and there are many incidents of freight forwarding companies closing down and running away, which are not uncommon in 2023......
The year 2024 will be accompanied by the "aftershocks" and accumulated pressures left over from 2023 in addition to the recession in freight transport.
The wave of layoffs and closures in the field of logistics supply chain is intensifying, whether it is a supergiant in the industry, a mainstay regional leader, a logistics technology unicorn valued at billions of dollars, a logistics state-owned enterprise that enjoys a large amount of government subsidies, a veteran logistics company with a history of nearly 100 years, or even a freight company with only a dozen people, no one can be immune.
When it comes to the reasons for layoffs and closures, most of them are due to the weak global economy, large-scale freight recession and capital market contraction, reduced demand, excess capacity, and increasing costs (oil prices, labor costs, equipment maintenance, etc.).
In January, United Parcel Service (UPS) announced it would lay off 12,000 employees and consider selling its Coyote trucking brokerage business.
In January, FedEx management was seeking early retirement to lay off 400 crew members, while reducing the minimum wage for pilots by 13 percent;
In January, logistics unicorn Flexe laid off another 38% of its workforce, up from 33% three months ago.
In January, trucking giant Uber Freight confirmed that the company was forced to lay off employees;
In March, DB Cargo planned to lay off 1,800 employees;
In March, BNSF Railroad announced that a total of 362 employees were "on leave" across the United States;
......
The reasons for the layoffs of the logistics giants are relatively similar: due to persistent inflation in the United States, the freight industry has weakened demand, resulting in a reduction in UPS and FedEx's business and a significant decline in package volumes. UPS is cutting primarily full-time and part-time management and contract positions, which will save the company about $1 billion.
In January, the Moscow Arbitration Court declared the bankruptcy of the Russian logistics giant Network of Automated Dispensing Points LLC (PickPoint brand). It is reported that the main reason for the giant's bankruptcy is the financial crisis caused by the decline in turnover.
In February, Boateng Logistics, a California-based freight forwarding company, filed for bankruptcy liquidation with millions of dollars in debt to trucking, logistics and factoring companies.
In March, Nationwide Cargo Inc., a U.S. trucking company with 183 trucks and 171 driversFile for bankruptcy protection. The company is primarily engaged in the transportation of general freight, fresh produce and meat, with liabilities between $10 million and $50 million.
In March, TBL Logistics, a U.S. logistics company, filed for bankruptcy liquidation, saddled with millions of dollars in debt for its related businesses such as trucking, logistics and truck docking chains. The industry believes that the company may be too aggressive and expand too fast in the process of operation, resulting in the rupture of the capital chain and ultimately difficult to maintain normal operations.
The collapse of a logistics company has left its carriers in arrears, increasing the chances of the latter going bankrupt.
According to statistics released by Price Bailey in the United Kingdom, the rate of insolvencies has more than doubled every year since 2020. This means that more logistics companies are likely to go bankrupt in 2024.
Sunny has already signed contracts with three major international shipping companies, perfectly reflecting its credit, service capabilities and business saturation.Serving as vice chairman of 13 freight forwarder associations, Sunny Worldwide Logistics has strong collaborative capabilities in international logistics, which few freight forwarder can achieve.It has standardized warehouses with signage at the shenzhen seaport, fully demonstrating Sunny Worldwide Logistics’s strength and position in the international logistics industry.
