Zhengzhou cross-border e-commerce is waiting to restart

In the past week, Cao Yongfan, a cross-border e-commerce seller in Zhengzhou, has been busy solving logistics problems. Affected by the heavy rain, all major express companies have suspended receiving orders to Henan.

Originally, Zhengzhou was a distribution center for many cross-border sellers. Goods purchased from suppliers from all over the world would arrive in Zhengzhou first, and then be delivered to the airport by a freight forwarding company, and then sent overseas by air.

After the express delivery was suspended, Cao Yongfan was delayed for four or five days in the purchasing link. In order to ensure timely delivery, he had to find a freight forwarding company outside the province to cooperate.

Relying on convenient transportation conditions and supply chain foundation, Zhengzhou’s cross-border e-commerce development has always been at the forefront of the country. In 2020, Zhengzhou’s cross-border e-commerce transaction volume was 13.3 billion U.S. dollars, a year-on-year increase of 23.5%. From January to May 2021, Zhengzhou’s cross-border e-commerce transaction volume has reached more than 7 billion U.S. dollars, a year-on-year increase of 42%.

In the sudden rainstorm, cross-border e-commerce companies that rely on logistics capabilities also experienced a brief shutdown. According to news from the State Post Bureau on July 24, according to preliminary statistics, as of 22:00 on July 22, there were no casualties in the postal express industry in Henan Province, 1,610 production sites were damaged and unable to operate normally, the express backlog was 4,702,700, and the express was damaged 8.87 Million pieces. In addition to express delivery services, Henan Province is also a centralized place for freight warehousing such as railways and aviation.

In Zhengzhou, small and medium-sized cross-border companies mostly use this city as a distribution center for warehousing and logistics. In the past week, they have also withstood the test.

A traffic artery suspended by heavy rain

Few people know that Henan, located in the Central Plains, is also a major cross-border e-commerce province.

In terms of import and export trade, Henan had inherent shortcomings. The Henan Cross-border Home Furnishings, which went on sale in July this year, mentioned in an interview earlier that domestic e-commerce was not very popular in 2007. At that time, cross-border e-commerce was very niche, mainly eBay and AliExpress. At that time, platforms such as Tongtong , Alibaba International Station, and Dunhuang.com did not have such a view of the cross-border e-commerce industry. In the industry, most of the platform sellers claimed to be themselves, and most of them were small and micro enterprises, concentrated in the coastal area. Henan is the only one in this industry. countable.

But Henan, which is not along the coast or along the river, has found its own advantages. In the same year that Zhiou was founded, Zhengzhou Airport Zone was approved to be established. In 2013, Zhengzhou Airport Economic Comprehensive Experimental Zone became the country’s first pilot zone for airport economic development. Zhengzhou is also the eight major railway hub and is known as the heart of the railway. After the China-Europe trains departed from Zhengzhou , Zhengzhou has become one of the Chinese cities that have established railway connections with Europe.

With this advantage, Zhengzhou’s cross-border e-commerce development has been at the forefront of the country. In 2020, Zhengzhou’s cross-border e-commerce transaction volume was USD 13.3 billion, a year-on-year increase of 23.5%. Among them, the Henan Bonded Logistics Center achieved a total import and export value of 17.6 billion yuan, a year-on-year increase of 93.9%, and an export value of 15.85 billion yuan, a year-on-year increase. 298.2%. From January to May of 2021, Zhengzhou’s cross-border e-commerce transaction volume has reached more than 7 billion US dollars, an increase of 42% year-on-year, ranking first in central China and leading the country.

However, many of Zhengzhou’s traffic arteries were temporarily suspended due to rare heavy rains. According to the monitoring of the Meteorological Department, from 20:00 on July 17 to 20:20 on July 20, the total rainfall in Zhengzhou reached 617.1mm, which is close to the average annual rainfall in Zhengzhou. From 16:00 to 17:00 on the 20th, the precipitation reached 201.9mm. The water equivalent to 150 West Lake was poured into Zhengzhou within an hour.

The sudden heavy rain caused severe waterlogging disasters. The traffic of Zhengzhou, the capital of Henan Province, was once faced with “shutdown”: the entire subway line in the city was suspended, flights were cancelled on a large scale, many high-speed rail trains were forced to turn back, and many highway sections were banned… Not only the city traffic in Zhengzhou, as a national transportation hub, many major traffic roads were damaged in the rainstorm.

According to a report from the Ministry of Transport, 6 sections of Henan’s 6 expressways, 87 sections of 16 national roads and 26 provincial roads were damaged due to rainfall. As of 8 o’clock on the 26th, 3 of the 3 expressways have been cleared. Road sections, 51 sections of 8 national roads and 10 provincial roads, the damaged sections are gradually resuming traffic. A total of 981 highways were destroyed by flooding, of which 369 have been rushed through and 612 are still being repaired.

Regarding ordinary national and provincial highways, 36 sections of Henan’s 8 national highways and 16 provincial highways are still under emergency repairs. Among the 36 emergency repair sections, 23 are expected to resume traffic at the end of July to ensure the normal travel of local people and vehicles; 12 The road is flooded due to flood discharge, and it can pass after the water subsides.

After the heavy rain, on July 21st, express companies such as SF Express, Yunda , YTO, and Shentong issued “Notice to Customers”, stating that door-to-door pickup, express delivery, and delivery timeliness will be affected to varying degrees under the influence of inclement weather.

Zhengzhou cross-border e-commerce is waiting to restart

Express Distribution Center / Picture Source: BaBa Logistics

Cross-border e-commerce companies that rely on express delivery services

Due to the suspension of express delivery, the cross-border e-commerce companies in Zhengzhou have also been tested in the past week.

On the afternoon of July 20, when the rainfall in Zhengzhou reached its peak, Zhang Liang, the head of the cross-border payment company PingPong Zhengzhou Branch, began to communicate with the head office and took emergency measures to place employees in nearby hotels. In the following days, PingPong purchased a batch of materials and sent them to several cross-border e-commerce parks by Zhang Liang. Zhang Liang found that several cross-border e-commerce parks in Zhengzhou were in a state of “soaking in water”, and some companies also had a situation where goods were soaked in water.

However, the bigger challenge comes from the suspension of express delivery. Cao Yongfan (pseudonym), a cross-border e-commerce seller, has been busy solving logistics problems. After the heavy rain, he received a notice from the company to purchase. Affected by the heavy rain, all major express companies suspended receiving orders to Henan, and a batch of goods stopped at the distribution center around Zhengzhou, staying for a few days until the 26th. Traffic in Zhengzhou City was restored before entering Zhengzhou.

Originally, Cao Yongfan’s company would directly send the purchased goods to the freight forwarding office in Zhengzhou, through the freight forwarding to the airport, and finally to overseas. Usually, this process only takes three days. However, after the suspension of express delivery, only the procurement process took a week longer than usual. For this reason, he had to find a freight forwarding company outside the province to cooperate and ship goods from other regions instead.

After the heavy rains in Henan, the express delivery industry was seriously damaged. According to a video emergency meeting held by the Henan Provincial Postal Administration on July 24, according to preliminary statistics, as of 22:00 on July 22, there were no casualties in the postal express industry in Henan Province, and 1,610 production sites were damaged and unable to operate normally. There was a backlog of express mail. 4.7257 million votes, 88,700 express shipments were damaged.

Most of the Zhengzhou cross-border e-commerce companies rely on the convenience of Zhengzhou’s transportation and use this city as a transit center. According to Zhang Liang’s observation, the larger cross-border e-commerce companies in Henan usually have warehouses in Shenzhen, Guangzhou, Yiwu or Ningbo, but small and medium-sized enterprises do not have such capabilities, so they will purchase goods to Zhengzhou before completing quality inspections. , Packaged delivery process. There are still a few cross-border e-commerce companies at the C-end who choose air transportation. Most companies will choose sea transportation to send goods from Zhengzhou to Shenzhen, Ningbo and other cities through domestic express.

After the courier service that cross-border e-commerce relied on was shut down, they were unable to deliver the goods for nearly a week. And then, entering August and September, the peak shipments of cross-border e-commerce companies are about to come.

After a few days of suspension, to July 25, the China-Europe train from Zhengzhou gradually resumed operation. After the heavy rain, Kong Weidong, deputy general manager of the Taihua International Railway Division (THI), once introduced to the media, “The current operation of the China-Europe Express Zhengzhou line is still normal, and it is estimated that it will be delayed by 2-3 days. The loss of goods accumulated in the warehouse is not Great, because there are precautions before the heavy rain.”

However, Zhang Liang also noticed that most of the B-end merchants who ship via China-Europe Express trains are traditional foreign trade companies, and most C-end cross-border e-commerce companies still choose air and sea transportation. With the rush to repair roads, Zhengzhou, the cargo distribution center, is gradually recovering its former logistics capabilities.

After the traffic in Zhengzhou gradually recovered, Cao Yongfan also received more good news, “I heard that by the 28th, the express delivery to Henan can be restored.”

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/zhengzhou-cross-border-e-commerce-is-waiting-to-restart/
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