由 caicai8478 With the deepening integration of the global economy and the advancement of digitalization, cross-border e-commerce has become a new and indispensable form of trade. In this era where speed and experience are paramount, fast shipping, as a new type of productivity, is emerging in the shipping industry.
Li Xiaobing’s Summit Speech Video
At the 7th Cross-border E-commerce Logistics Trends Summit, Mr. Li Xiaobing, President of ZIM Integrated Shipping South China and Hong Kong, delivered a keynote speech titled “The New Productivity of Cross-border E-commerce Fast Shipping.”
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Three Core Elements of Fast Shipping
Over the past few years, especially during the pandemic, fast shipping has become a hot topic in cross-border e-commerce logistics. In the cross-border e-commerce industry, speed is the key to competitiveness, leading to the continuous emergence and innovation of fast shipping. However, a truly fast shipping service is not simply about speed; the cross-border e-commerce customer experience is the defining factor. Therefore, a fast shipping service must meet three core elements: accuracy, speed, and stability.
Accuracy: Departing and arriving on time provide customers with a clear and reliable schedule. This punctuality helps customers better plan their logistics needs, reduce uncertainty, and improve overall operational efficiency.
Fast: The voyage time from major Chinese ports to major ports in the West Coast of the United States must be maintained at 11 to 13 days. The unloading time at the destination port must be fast, ensuring that customers can receive their goods within one to two days after arrival. Service for cross-border e-commerce customers must also be swift.
Stability: Consistently stable operational performance is the guarantee of supply chain certainty for cross-border e-commerce. In this highly competitive market, express shipping must maintain high performance and service quality on every voyage to earn customer trust and loyalty.
Li Xiaobing, President of South China and Hong Kong, ZIM Integrated Shipping
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Opportunities and Challenges of Express Shipping
While air freight offers an unparalleled time advantage, express shipping can provide stable service at a relatively low price, and in some cases, its timeliness can rival air freight. For example, ZIM’s express shipping service from Yantian International Port to the Port of Los Angeles can deliver goods within 16 to 18 days. While slightly slower than direct flights (5 to 9 days) or connecting flights (10 to 18 days), express shipping remains highly competitive given its price and stability.
The rapid growth of the cross-border e-commerce market has also provided ample room for express shipping services. Since China joined the World Trade Organization in 2021, cross-border e-commerce has been the fastest-growing form of trade. According to relevant data, Chinese sellers’ share of Amazon’s merchandise volume has been increasing annually, reaching over 28% in 2023. In 2023, 75% of Amazon sellers will be from China, a 47% surge compared to 2020. However, these 75% sellers only account for 28% of sales. This suggests significant growth potential for Chinese sellers on Amazon, and their share of Amazon’s merchandise volume will continue to rise.
In the US e-commerce market, the US e-commerce market is expected to grow by 8.5% in 2024, generating an estimated $1,064.2908 billion in revenue. Furthermore, Amazon’s new policy, which took effect on March 1st, has increased timeliness requirements, boosting demand for express shipping and significantly impacting the cross-border e-commerce industry.
However, the constant emergence of black swan events has brought significant uncertainty to the shipping and international logistics industries. For example:
The Baltimore Bridge collision led to the closure of the Port of Baltimore, a major port on the US East Coast;
In 2023, the Panama Canal, a major artery of global shipping, suffered an unprecedented drought since records began in 1950. The Panama Canal implemented shipping restrictions, resulting in a 30% decrease in vessel throughput. Container ships attempting to transit the Panama Canal had to lighten their loads and pay higher fees (a 30% decrease in throughput);
The Red Sea crisis has forced container ships to adopt a detour to reach the US East Coast. Average vessel delays have increased by 15 to 19 days, severely impacting delivery times. These detours around the Cape of Good Hope to the US East Coast (expected to be approximately 10 days later).
Therefore, we predict a significant increase in cargo entering the US from the West Coast. Using the US West Coast as an import gateway, combined with the rail system for more precise delivery to US destinations, has become a more attractive option. This solution can avoid congestion and uncertainty on the East Coast and improve logistics efficiency and stability.
Finally, in the digital age, understanding customer needs has shifted from “what I think” to “what the customer thinks.” Customer experience and needs have become paramount considerations for cross-border logistics companies. Cross-border e-commerce sellers’ unchanging requirements for cross-border logistics are primarily “fast, stable, and affordable,” meaning air freight timeliness, ocean freight prices, and stable service. Consequently, an increasing number of cross-border logistics companies are opting for express shipping services provided by shipping companies. Express shipping operates from port to port, while express shipping operates from warehouse to warehouse.
In addition to selecting the right express shipping, successful express shipping also tests the comprehensive capabilities of a cross-border logistics company, including domestic operational capabilities and US clearance, pick-up, and delivery capabilities. Only when a cross-border logistics company’s comprehensive capabilities are they able to demonstrate higher service value through express shipping products. Therefore, excellent cross-border logistics companies are leveraging “accurate, fast, and stable” express shipping to create “accurate, fast, and stable” express shipping products, capitalizing on value and breaking free from internal competition.
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Express Shipping Empowers the Growth Flywheel of Cross-Border E-Commerce
Supply chain capabilities are the core of the cross-border e-commerce growth flywheel. The following analysis combines Amazon and TEMU platforms.
As the world’s largest e-commerce platform, Amazon’s growth flywheel is product-driven, optimizing its supply chain to continuously improve user experience. It has invested heavily in developing its logistics and distribution supply chain to ensure the ultimate customer experience.
As the fastest-growing platform, TEMU’s growth flywheel consists of two main steps. The first is to achieve marketing breakthroughs through product development, increasing traffic, transportation capacity, and product offerings to attract customers. The second step is to leverage marketing capabilities to drive supply chain profitability, moving from “acquiring customers” to “enhancing the customer experience.”
Price-performance is the underlying principle of supply chain capabilities. Cross-border e-commerce supply chain capabilities are a comprehensive cost-competition. A good supply chain can reduce inventory capital costs, sales turnover, and logistics costs, thereby improving product value-for-money.
As a cost-effective alternative to air freight, express shipping is empowering the growth flywheel of cross-border e-commerce. First, it offers greater transportation capacity. While 50% of global transportation capacity comes from air freight, 95% still relies on sea freight. Container shipping accounts for 30% to 40% of global transportation capacity, making it a significant force that cannot be ignored. Second, it offers faster turnaround times, more stable service guarantees, and more optimized logistics cost management.