Cover Story compliance to move large volumes , mostly on a businessto-business basis .
“ The e-commerce shipments are mostly general cargo that often falls under di minimis levels , so border management is less of an issue ,” he told the Journal of Commerce . “ Most e-commerce shipments comprise hundreds , if not thousands , of individual consignments that need some form of final-mile solution . Considering the low-cost aspect associated with the original online purchase is often guided by the e-platform in the first place , the value-add by a forwarder is limited .”
‘ Weaponizing ’ supply chains
Lund noted during DSV ’ s earnings call that “ many of these e-commerce companies have a direct relation with some of the carriers because they would produce certain fixed volumes in certain areas .”
Bourke described that as Chinese platforms using their large volume of cargo to bypass forwarders and contract directly with airlines , a process he called “ weaponizing ” their supply chains .
“ The Chinese marketplaces recognize that companies don ’ t compete , supply chains compete ,” he said . “ But there are always opportunities for forwarders ; if we don ’ t have one leg of a supply chain , we might have the other two and we are always there to fill in any gaps .”
Bourke noted as an example that many forwarders were focused on serving specialized vertical markets and said that trend would continue , regardless of the volume being generated by e-commerce .
“ Changing global regulations pose challenges , but whether it ’ s pharmaceuticals , chemicals , e-commerce , biotechnology or medical devices , all require specific expertise and if it aligns with your company ’ s strategy , it will make sense ,” he said .
Marc Meier , managing director for air and sea logistics in Europe , the Middle East and Africa for Germany-based forwarder Dachser , said the Chinese online marketplaces operate their supply chains directly , a strategy that leaves little room for a forwarder .
“ We do not like it , but given the current market conditions , we do not really have a choice ,” he said . “ Regarding European customs and last-mile capabilities , you need to be able to produce [ services ] with very low costs as these shipments are smaller and lighter than the European average . For that you need an automated customs process and high-speed sorting facilities . As far as I know , only DHL and Hermes have those capabilities .”
Meier said he does not believe the Temu-Shein model will last , with regulatory changes likely to make it unviable . But he was confident that e-commerce as part of global air freight would continue its growth trajectory and that more sustainable business models would emerge .
Outbound e-commerce volumes from China could fill 50 to 80 freighter aircraft per day . Shutterstock . com www . joc . com September 9 , 2024 | Journal of Commerce 13