Transit warehouses in modern logistics

Transit warehouses play a crucial role in modern logistics. They serve as a stopover for goods and products en route to their final destination. This is particularly important in a globalised economy, where goods often have to travel long distances.

Definition:

Transit warehouses (also known as transshipment warehouses) are transport-oriented warehouses in which goods are temporarily stored while they await onward transport to their final destination.

They are located at railway stations, harbours, marinas, airports and freight terminals. They are characterised by their low warehouse height and depth. For fast logistics processes, they have more doors than central warehouses or distribution centres.

  • Advantages: Transit warehouses help to organise the flow of goods efficiently and promote a smooth supply chain.
  • Cost savings: They can help to reduce transport costs and shorten delivery times.
  • Time management: Delivery times can be better planned and controlled through the targeted utilisation of transshipment warehouses.

 

Transit warehouse: a strategic advantage for companies

Transhipment warehouses offer companies a wide range of opportunities to improve their logistics processes. They enable a more flexible response to fluctuations in demand and help to reduce storage and delivery costs:

  • Adaptability: Medium-sized companies can react quickly to changes in the market with transit warehouses.
  • Cost reduction: By utilising transshipment warehouses effectively, medium-sized companies can avoid extensive inventories and the associated costs.
  • Efficiency: The warehouses support an efficient and reliable supply chain by minimising waiting times and optimising the transport flow.

Expert tip:

Ensure that your transit warehouse is strategically located to minimise delivery times and optimise the flow of goods.

Transit warehouse: support for global logistics solutions

Transhipment warehouses are a key tool for companies that need to ship goods and products worldwide. They facilitate the transport process and help to improve the supply chain:

  • Simple flow of goods: Transit warehouses can minimise the logistical challenges of transporting goods over long distances.
  • Global reach: They give companies access to global markets and at the same time improve delivery speed and reliability.
  • Variety of transport methods: Whether overland transport, air or sea freight - transshipment warehouses support all types of transport methods

 

Fully utilise the benefits of transit storage with Dörrenhaus

The advantages of transit camps are undeniable:

  • Increased efficiency: By optimising the use of transshipment warehouses, companies can make their supply chains more efficient.
  • Cost reduction: They help to reduce time-consuming warehousing and the associated costs.
  • Logistical optimisation: With their flexibility and adaptability, transshipment warehouses help companies to optimise their logistics processes.

With a drying house as Storage partner you can optimally utilise the advantages of transit warehouses. Do not hesitate to contact us for customised logistics solutions.

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FAQ

What is a transshipment warehouse?

A transshipment warehouse is a place where goods are delivered, stored for a short time and then transported onwards. It serves as an interface between different means of transport.

How does a transit warehouse work?

Goods are stored in a transit warehouse for a short period of time before they are transported on to their final destination. It enables efficient organisation and coordination of the flow of goods.

Who uses transshipment warehouses?

Transhipment warehouses are used by companies in all sectors that need to transport goods. They are particularly important for medium-sized and large companies with complex logistics processes.

Sea freight export: The process in the comprehensive guide

Sea freight plays a key role in global trade. Not only is it a cost-effective way of transporting large quantities of goods over long distances, it is also one of the oldest methods of international trade.

In order to realise the full potential of this logistics sector, it is essential to familiarise yourself with the sea freight export process.

► Increased efficiencyUnderstanding the process helps to make the transport process more efficient.

►Cost savingsKnowledge of the process can help to avoid unnecessary costs.

►Risk minimisationInsights into the process help to recognise and avoid potential problems at an early stage.

►Business growthKnowledge of sea freight export opens doors to new international markets and business opportunities.

In this article you will learn everything about sea freight export and its process.

The cornerstones of sea freight export

Exporting by sea freight is a complex process made up of several important components. In this section, we will highlight the key aspects that every company needs to understand in order to be successful in the world of international freight transport.

► FCL (Full Container Load)Ideal for large shipments where an entire container is filled with goods from one sender. This option is often more cost-effective for larger quantities.

► LCL (Less Container Load)A good choice for smaller consignments. Several senders share one container, which offers flexibility for smaller freight volumes.

► Specialised servicesServices such as customs clearance and warehouse logistics are crucial to ensure that the entire process runs smoothly.

This fundamental understanding of ocean freight export is the key to success for companies looking to ship their products internationally. It enables an informed decision on which shipping options best suit the company's individual needs.

The first step in the sea freight export process: product preparation and packaging

Preparing your products for sea freight export is a crucial step in ensuring that your goods reach their destination safely and undamaged. This process includes not only the selection of suitable packaging, but also compliance with certain standards and regulations.

► Product reviewMake sure that your products meet the export requirements and that there are no restrictions.

► Appropriate packagingUse robust and suitable materials to prevent damage during the voyage.

LabellingClear and correct labelling of parcels is essential for smooth processing.

► DocumentationPrepare a precise packing list containing all the details of your shipment.

Careful preparation and packaging of your products is the cornerstone of a successful sea freight export. It minimises the risk of delays and damage and ensures efficient handling throughout the entire transport process.

The second step in the sea freight export process: The export documentation

The correct creation and management of export documentation is a critical aspect of sea freight export. These documents not only serve as proof of the goods shipped, but are also essential for customs clearance processes and compliance with international trade regulations.

Commercial invoiceA detailed list of your products with value details.

►Packing listDetailed information on the weight, dimensions and contents of each pack.

►Export licenceRequired for certain goods, depending on the export regulations.

► Certificate of originA document that confirms the origin of the goods.

The careful preparation and organisation of these documents ensures that your sea freight export runs smoothly and without unnecessary delays. This is a crucial step in ensuring that your goods arrive at their destination on time and in compliance with all legal requirements.

The third step in the sea freight export process: Choosing the right forwarder

Choosing the right freight forwarder is a crucial step in sea freight export. An experienced freight forwarder can not only organise the transport of your goods, but also provide valuable support in navigating complex logistical challenges.

►Experience and expertise: Look for a freight forwarder with extensive experience in sea freight.

► Range of servicesCheck whether the freight forwarder offers the required services, such as customs clearance and warehouse logistics.

►Network and reachA good haulier network can make transport more efficient and hassle-free.

►Customer reviews and referencesFind out about the haulier's reputation through customer feedback.

Choosing a competent and reliable freight forwarder is crucial for a smooth and efficient sea freight export. A good freight forwarder can not only save time and money, but also minimise the risk of delays and complications.

The fourth step in the sea freight export process: Booking and customs clearance

Booking with a shipping company and customs clearance are essential steps in sea freight export. They require precise planning and a good understanding of customs regulations.

► Booking processContact a shipping company or have your forwarding agent make a booking. Select the appropriate shipping option (FCL or LCL).

► Customs documentationPrepare all necessary customs documents, such as export declarations and any necessary authorisations.

►Customs dutiesInform yourself about the applicable customs duties and ensure that these are paid on time.

►Customs agentsConsider using a customs broker to simplify the process and avoid errors.

Following these steps precisely is crucial to avoid delays and additional costs. Careful planning and an understanding of the booking and customs clearance process are essential for a successful sea freight export.

The fifth step in the sea freight export process: transport and logistics

Once the booking and customs clearance have been completed, the actual transport process begins. This step requires careful planning and monitoring to ensure a smooth process.

► Transport to the harbourThe goods are transported to the port of shipment, often by lorry or rail.

► MonitoringTrack the status of your freight to be informed of any changes or delays.

►Safety measuresEnsure that your goods are protected during transport and storage.

Expert tip:

Work closely with your freight forwarder to ensure that all logistical requirements are met.

Effective coordination and monitoring at this stage of the sea freight export process is crucial to ensure that your goods arrive at their destination on time and in good condition.

The sixth step in the sea freight export process: Arrival and unloading

The arrival of the goods at the port of destination and their unloading are crucial moments in sea freight export. This step requires precision and good management.

► Arrival at the destination harbourThe goods reach their destination and are unloaded from the ship.

Customs clearanceThe goods must pass through customs in the country of destination. Precise documentation is important here.

► InspectionInspection of the goods is often carried out to check their condition and compliance with the specifications.

Expert tip:

Have all the necessary documents ready and work closely with local agents to speed up the process.

Careful handling of this phase is crucial to ensure that your goods reach their destination efficiently and without any problems.

The seventh step in the sea freight export process: delivery and follow-up

After the successful arrival and unloading of the goods at the port of destination, the final step of sea freight export follows: delivery to the final recipient and subsequent follow-up.

►Final deliveryThe goods are transported from the harbour to their final destination.

► Follow-upChecking the delivery for completeness and integrity.

► Feedback and evaluationCollect feedback from recipients and evaluate the entire process.

Expert tip:

Use the experience gained to optimise future sea freight exports.

This final step concludes the sea freight export process and offers the opportunity to learn from experience and organise future transports more efficiently.

Dörrenhaus: Your reliable partner for sea freight export

Dörrenhaus is your partner in sea freight export, ready to simplify and optimise the entire process for you.

► Customised solutionsDörrenhaus offers customised sea freight options, including FCL and LCL, to suit your specific needs.

► Comprehensive servicesFrom customs clearance to warehouse logistics, Dörrenhaus covers all aspects of sea freight export.

►Reliability and experienceBenefit from Dörrenhaus' many years of experience and expertise in sea freight.

►Customer orientationDörrenhaus emphasises customer satisfaction and offers a first-class service.

Dörrenhaus is your ideal partner for the Sea freight export smoothly and efficiently. With our expertise and the services we offer, you can rely on the successful international transport of your goods.

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FAQ

How does the export process work for sea freight?

Sea freight export begins with the preparation and packaging of the goods, followed by the booking of the transport, the preparation and submission of the necessary documents, customs clearance, and ends with the transport and unloading at the port of destination.

What documents are required for sea freight?

The commercial invoice, packing list, export licence and certificate of origin are essential documents for sea freight. The compilation of the data should be completed before the ship is loaded. Errors or a licence that is no longer valid are associated with high costs if customs objects to them.

What tasks does a freight forwarder take on in the sea freight sector?

A freight forwarder organises and coordinates the entire transport process, including the selection of transport routes, customs clearance and the provision of logistics services.

What do you have to watch out for with sea freight?

Correct packaging and labelling of the goods, compliance with legal regulations and careful documentation for customs are important.

Which containers are used for sea freight?

Standard containers for Full Container Load (FCL) and Less Container Load (LCL) are common, as well as specialised containers for temperature-sensitive or hazardous goods.

How does a haulage company work?

Freight forwarders act as intermediaries between customers and transport service providers, plan the logistics, take care of the necessary documentation and monitor the transport.

Why is sea freight worthwhile?

Sea freight is particularly cost-effective for transporting large quantities of goods over long distances and provides access to global markets.

 

For China and India sea freight is increasingly being used.

Finding dropshipping suppliers - a key to success

Dropshipping is a popular method in e-commerce that enables companies or an online shop to sell products without their own warehouse. Orders are sent directly from the manufacturer or wholesaler to the customer via the supplier. As a result, business customers can concentrate on marketing and customer service.

This results in several advantages:

► Reduction of storage costs

► Flexibility in the selection of products

► Focus on customer loyalty and marketing

Choosing the right supplier is essential for the successful realisation of the dropshipping business. In this article, we will show you how to find a suitable dropshipping supplier.

Choosing the ideal dropshipping wholesaler

Choosing the right dropshipping supplier is crucial to the success of your business. A good supplier is characterised by reliability and a wide range of dropshipping products. Quality and fast delivery times are also important to satisfy customers and receive positive reviews.

Important characteristics of a supplier:

  • Reliability in delivery and communication
  • Broad and high-quality range of millions of products
  • Fast and efficient delivery times
  • Precise logistics processes and warehouse management

In order to find a suitable dropshipping supplier, it is essential that they have the above-mentioned characteristics. This can ultimately lead to a strong and trustworthy relationship and an efficient dropshipping business.

Effective strategies for finding a dropshipping supplier

The search for the ideal dropshipping supplier requires a strategic approach. A good starting point are online marketplaces and specialised supplier databases where various dropshipping suppliers can be found.

Here you will find a variety of options with different offers. Making direct contact and networking at industry events can also provide valuable contacts.

Search methods for suppliers:

► Use of online marketplaces and supplier databases

► Direct contact and networking with dropshipping retailers

► Visit trade fairs and industry events

Evaluation criteria for dropshipping suppliers

Choosing the right dropshipping supplier is a critical step. It is important to carefully evaluate potential suppliers. This includes factors such as adherence to delivery times, product quality and customer service.

Ein grundlegendes Verständnis des „Dropshipping Agreement“ – einer Vereinbarung zwischen Händler und Lieferant – ist hierbei essenziell.

Evaluation criteria:

► Punctuality and reliability of the delivery

► Quality and variety of the products offered

► Efficiency and accessibility of customer service

Integration of dropshipping suppliers into your logistics

The integration of a dropshipping supplier into the existing logistics structure is a key element for success. It is important that the supplier understands your logistics needs and fits seamlessly into your processes.

Factors such as system compatibility and communication play a decisive role here.

Integration elements:

► Coordination of the delivery processes with your company

► Compatibility of the IT systems

► Clear communication channels for efficient processes

Avoid common dropshipping mistakes

In the world of dropshipping, there are some common mistakes that need to be avoided. These include underestimating delivery times, lack of communication with the supplier and neglecting product quality. A proactive approach to avoiding these mistakes is essential.

Common errors and solutions:

► Realistic estimation of the delivery times

► Regular communication with suppliers

► Continuous monitoring of the product quality

Your path to successful dropshipping - with Dörrenhaus as your partner

The right selection and integration of dropshipping suppliers is crucial for success in e-commerce. It is important to carefully evaluate potential partners and integrate them effectively into your logistics structure.

This is where Dörrenhaus offers valuable support with its range of international logistics services, including ground freight, ocean freight, air freight, warehouse logistics and specialised logistics solutions. Our expertise ensures smooth and efficient logistics.

Dörrenhaus as your logistics partner:

► Comprehensive international logistics solutions.

► Expertise in complex logistics challenges.

► Support for a successful dropshipping strategy.

Do you have any questions? Contact us now!

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FAQs

How do I find a dropshipping supplier?

Search online marketplaces and supplier databases or use industry events for direct contacts.

How do I recognise a trustworthy dropshipping supplier?

Check the supplier's delivery reliability, product quality and customer ratings.

Can I use several suppliers at the same time?

Yes, using multiple suppliers can expand your range of different products and minimise risks. This allows you to further optimise your sales via dropshipping.

How do I integrate a supplier into my existing logistics?

Adapt the supplier's delivery processes to your logistics and ensure efficient communication.

What do you need to look out for when running a dropshipping website?

Anyone running a dropshipping website should select the right range of products. These must appeal to the target customers. Also pay attention to the monthly fee for hosting your website, as this can be a significant cost factor.

Groupage freight forwarding: essential in modern trade

Groupage freight forwarders are the backbone of global trade. They enable companies to transport smaller consignments cost-effectively and flexibly. In a world where speed and adaptability are crucial, groupage freight forwarders offer the ideal solution for business needs.

► Efficiency: Groupage freight forwarders bundle several small consignments into one larger delivery, which saves costs.

► Flexibility: They adapt to varying consignment sizes, which is particularly valuable for small and medium-sized companies.

► Speed: Optimising transport routes enables goods to reach their destination faster.

These factors make groupage freight forwarders an essential partner in modern trade. In this article you will learn everything about groupage freight forwarding.

The basics of groupage transport: Efficient logistics solutions

Groupage transport is a key element in the logistics industry. It refers to the consolidation of several smaller shipments from different customers into one larger load. This method offers numerous advantages, especially for companies that do not ship full truckloads.

►Cost savings: Bundling shipments reduces transport costs for each participating company.

► Flexibility: Groupage transport also enables small and medium-sized companies to ship their products efficiently.

►Optimisation: Merging consignments leads to more efficient and environmentally friendly transport routes.

Advantages of groupage freight forwarder: cost efficiency and flexibility

Using a groupage freight forwarder offers companies significant advantages, particularly in terms of cost efficiency and flexibility. This concept is particularly beneficial for companies that regularly need to transport smaller consignments.

► Cost saving: By bundling goods from different senders in one means of transport, costs are shared and thus reduced for each individual sender.

► Shipping flexibility: Enables smaller companies to ship their products without the need for a full lorry load.

► Expert tip: By using groupage freight forwarders, companies can significantly reduce their logistics costs and improve their delivery capability at the same time.

Dörrenhaus: Your reliable partner in groupage freight forwarding

Dörrenhaus stands for first-class services in the field of groupage freight forwarding. As an experienced company in international logistics, Dörrenhaus offers customised solutions that are specifically tailored to the needs of business customers.

► Broad range of servicesFrom land freight to sea freight and air freight, Dörrenhaus covers all important transport routes such as Saudi Arabia from.

► Additional services: In addition to standard logistics, Dörrenhaus also offers special solutions such as Amazon FBA and discounter logistics.

► Customer orientation: Customised advice and planning ensure optimum logistics solutions.

With Dörrenhaus, you are choosing an experienced partner who understands and effectively solves your logistical challenges.

FAQs

What is meant by grouped goods?

Groupage refers to the consolidation of smaller consignments from different customers into a larger load. This enables more efficient and cost-effective transport of a single item.

What does a groupage freight forwarder do?

A groupage freight forwarder organises the transport of these bundled shipments in order to optimise costs and resources.

How does groupage work?

With groupage freight, individual, smaller consignments from different senders are transported in a joint delivery, which reduces logistics costs.

The top 10 imports from China

When it comes to exports, China is at the top of the list. As the world champion in exports and one of the largest economies in the world, the country greatly benefits from the demand for its products.

China's economic model is based entirely on exports. This is the only way to achieve the high level of foreign currency in the long term. But what are the most popular imports from China?

It's all a question of demand

Every year, the top imports from China for Germany are summarised anew. The overviews show that although there are always changes in the top 10, the sectors remain the same. Electrical appliances and electrical engineering are among the most important imports from the Middle Kingdom, generating billions of dollars every year.

For China itself exports in these areas accounted for a share of almost 27% in 2021. Demand is primarily characterised by the smartphone as a single product. In 2021 alone, smartphones accounted for 4% of exports .

There are also high annual imports of vacuum cleaners, air conditioners and refrigerators from China. However, it is less well known that China is also one of the leading exporters of semiconductors.

Good to know:
Semiconductors are so-called solids. Due to their electrical conductivity, they can be used as non-conductors or conductors and therefore have a wide range of applications.

The top 10 imports from China at a glance

The latest figures from 2021 show that China generated total exports of around 2,558 billion euros. The revenue is made up of products from the following top 10 industries:

  1. Electronics and electronic applicatioms
  2. Machinery
  3. Textiles and clothing
  4. Furniture and items for the interior
  5. Plastics and plastic products
  6. Vehicles
  7. Toys
  8. Measuring technology
  9. Iron products
  10. Organic chemicals

Compared to 2018, the values of exports has risen by 400 billion euros. The trend is still rising. This is due to rising prices for production and purchasing in Europe. However, rising prices for products from China also explain the exporter's increase in turnover.

Notice: What are organic chemicals? These are chemicals based on carbon compounds. They include colourants and flavourings, but also polymers.

Top imports from China in figures

China has made a name for itself as a world export champion, but what exactly does this mean in terms of the products that are imported? Take vehicles, for example. China exports around 1,000,000 commercial and passenger vehicles per year. China has topped the list of countries for vehicle production and exports for several years now.

China is also a leader in terms of furniture exports. This is partly due to the fact that well-known suppliers, such as IKEA, have a large proportion of their furniture manufactured in China.

Smartphones are the top products when it comes to imports from China and Chinese brands, such as Huawei, are increasingly represented here. These developments can also be seen in the market for laptops. One of the top brands in this area is the Chinese supplier Lenovo.

Conclusion on the top 10 imports from China

It is not surprising that a look at the top 10 imports from China makes it clear that: Technology tops the list. China has been a pioneer in this area for years, which is partly due to the fact that major companies have relocated production of technical equipment to China.

However, the country's own products are also becoming increasingly important - especially when it comes to the technical sector. The list of the top 10 imports from China for Europe also includes clothing, machinery, toys and vehicles. In recent years, toys have become even more important. They make up quite a large proportion of export products for China.

Incoterms CIF and FOB for import and export services

This saves you money and nerves when importing and exporting. Thomas Meyer, Managing Director ofTBN Logistik & Trade GmbH explains what mistakes are often made when importing and exporting goods.
When it comes to the distribution of costs and risks between buyer and seller, the terms CIF and FOB are important for monitoring restrictions and quotas when importing goods.

What do CIF and FOB mean in connection with import and export?

The CIF means: Cost , Insurance , Freight and refers to a condition that is often used in overseas trade, e.g. between China and Germany.-z. B.between China and Germany - is often used.

FOB means "free on board" and is also an Incoterm. Unlike CIF, the importer takes over the goods from the port of shipment and therefore takes care of the transport himself. In this way, there are no unplanned costs!

Which transport route from China is the best? Ocean? Air? Train?

Is the transport of goods from China to Europe an important basis for your company? For a lean cost structure, fast deliveries and reliable deadlines , a comparison of sea, air and rail transport routes is relevant. Find out in this article where you can get the best price/performance ratio.

What are the advantages of air freight as a transport route from China?

Air freight has long been the most popular route from China to Europe, served by a combination of cargo and passenger aircraft . The Covid pandemic saw a sharp reduction in demand and freight capacity.

If you now decide to use air freight as a transport route from China, you will be faced with the problem that it is difficult to transport large quantities at short notice.

The costs of shipping air freight are also an important point for your company. Compared to ocean freight and ground transport, the costs for air freight are significantly higher, as is the environmental impact.

Nevertheless, the “air” transport route has a decisive advantage: time. This route is unbeatable, especially for the transport of time-critical or perishable goods .

What are the advantages of transport by plane?

  • Fast dispatch of time-critical products
  • Fast dispatch of perishable products
  • Short-term deliveries possible

What are the disadvantages of transport by plane?

  • Heavy environmental pollution
  • Capacities are severely limited
  • High costs

What are the advantages of ocean freight as a transport route from China?

A popular transport route from China to Europe is by sea. During the coronavirus pandemic, sea transport was severely restricted as many carriers cancelled ships .Restrictions are currently still in place to a limited extent, which is affecting the timing of sea transport.

At the same time, this is currently being offset by rising demand for goods. The expansion of shipping capacity is only progressing slowly.

In addition, a container backlog has developed over the last few years. Container availability is low, even though shipping companies are ordering more containers. Transport times are another issue, as they average around four weeks.

A positive aspect to consider when deciding in favour of sea transport from China are strong alliances. Many carriers are forging links with each other, which ensures that freight rates and the range of services offered increase.

In addition, this creates the effect of cost reduction, which is relevant for your company's decision.

What are the advantages of transport by ship?

  • Transport of large volumes possible
  • Transport difficulties are cushioned by alliances

What are the disadvantages of transport by ship?

  • No alternative for perishable goods
  • No alternative for time-critical goods
  • High capacity utilisation and container shortage
  • Lack of transport ships

What are the advantages of rail freight as a transport route from China?

The connection between Europe and China is shaped by a solid rail network that makes overland transport possible. In recent decades, ground routes have improved to such an extent that they represent serious competition for Air and the Ocean transport.

An increasing focus is also being placed on the use of automated vehicles.

The "Silk Road Economic Belt", also known as the "One Belt, One Road" project , is the transport route from China. This is a combination of various land routes that enable transport from China to Europe.

The focus is still on the Trans-Euroasia-Express, i.e. transport by rail. The advantages of rail transport for you are the costs and speed compared to ship and air.

What are the advantages of transport by train?

  • You pay 80 % less per tonne of transported goods than for a cargo flight
  • Rail transport is characterised by punctuality and minimal disruptions
  • Low transport volumes, unlike ship transport, are not available
  • Environmental advantages over air and sea transport

What are the disadvantages of transport by train?

  • No alternative for perishable goods
  • No alternative for time-critical goods
  • High route utilisation already in place

Conclusion about the transport routes from China

The three most important transport routes from China are air transport, shipping and ground transport - primarily by rail transport. In terms of costs, rail transport is an optimal choice. When it comes to transporting goods quickly and efficiently, air freight is still the leading option.

NVD Asia: The new booking agent for medium-sized businesses

The Dörrenhaus forwarding company traditionally comes from road freight transport, but has developed into an all-round logistics provider over the past decades. Today the truck sector accounts for a maximum of 15 percent of sales. The majority is generated in the sea and air freight business, reports Lars Dörrenhaus, managing director of the Dörrenhaus forwarding company. When he joined the company in the mid-1990s, the focus on Asian imports began and has been gradually developed further since then. The core competencies lie in logistics services for industry, retail and large online retailers. Dörrenhaus maps the entire supply chain for its customers.

This year - on the 50th anniversary of the family business - the next development step took place for the freight forwarder from Velbert in North Rhine-Westphalia. “The decision to build something ourselves in Asia was driven by the fact that our partners there either sold out or had to stop business due to financial problems. And because we didn’t want to work with 10 small Chinese service providers, we decided at the beginning of the year to set up our own company with a closed IT system,” explains Dörrenhaus. His company was able to use the connections it had built up over two decades of business in Asia.

 

Partnership with Neele Vat

Dörrenhaus wanted to take this step with a strong partner. The choice fell on Neele Vat Logistics. The Dutch logistics company had previously acquired a stake in the Dörrenhaus forwarding company and has been working successfully and trustingly with the Dörrenhaus forwarding company for decades. So it didn't take long until both parties agreed and decided to set up their own freight forwarder in Asia at the beginning of 2021.

 

However, it should be a completely independent company: “NVD Asia is not a service provider that works exclusively for Neele Vat or us, but rather a neutral booking agent that addresses forwarding companies worldwide that do not open their own offices in Asia. but still want to ship 2,000 to 3,000 containers,” says Dörrenhaus. Dörrenhaus and Neele Vat's business accounts for a maximum of a quarter of NVD Asia's total sales.

 

Shares divided equally

The start-up already works for companies around the world. Most of these medium-sized customers simply have too few throughput volumes in Asia, so that it is hardly possible to purchase cargo space in a worthwhile way, explains Dörrenhaus: “We have around 100,000 to 150,000 containers at sea and another 3,000 by rail per year which allows us to buy cheaper and pass it on to our partners.” The amount of the handling or booking fee depends on whether you use additional features such as Track & Trance. NVD Asia also offers services in air freight.

The shares in NVD Asia are divided equally between the two partner companies. But the local management also acquired a small share. “We have always handled it that way in the past. This means that all parties have the greatest possible interest in the company growing and operating healthily,” explains Cuno Vat, Managing Director at Neele Vat Logistics. The initial plan is to continue to grow only organically and not through acquisitions, adds Vat and explains: “We prefer to look for good managers and open up other Asian countries through our own local branches.”

More agile than the big ones

The advantage over the big freight forwarders is the agility of the Asian booking agent, which has paid off, particularly during the pandemic, due to the constantly changing requirements and the ongoing shortage of loading space. True to the motto: Necessity is the mother of invention. “We have chartered our own ships, carried out our own land transport on the New Silk Road and also transported goods in combined transport by rail in Kazakhstan,” reports Denis Kronenbitter, Managing Director of NVD Asia.

In addition, there are extremely many cancellations, changes, bottlenecks or problems that always require personal involvement. This affects the workflows: “Two years ago, a file for the container transport from Shanghai to Europe had to be touched an average of six times and the container was on the way. Today we are talking about the same file, which then has to be touched 27 times.”

The shortage of skilled workers is also clearly noticeable in Asia. “Logistics is no longer so sexy,” says Kronenbitter. There are also significant seasonal fluctuations, particularly in China. He doesn't find any workers at all between October and April, but it's easier in the summer. Many Chinese would currently rather pursue the dream of earning millions as an influencer than pursue a real profession. One difference from Europe is the work ethic. “If management is leading the way and is committed, the employees will follow.

 

Big expansion plans

It was clear from the start that NVD Asia relied exclusively on locals: “We don’t want to be a foreign company in Asia. We want to be an Asian company with Western European management. That’s why we rely exclusively on local partners and employees,” emphasizes Kronenbitter. Of the 120 employees in China Asia, only two are non-Asian - one of them is himself, says Kronenbitter. NVD Asia has now opened eight offices in Asia.

 

Additional markets are to be opened up this year. First Taiwan, Vietnam and Cambodia. This will be followed by Thailand, Malaysia and Indonesia. However, there will no longer be any branch further west than Myanmar. Kronenbitters. “We really want to be a purely Asian booking agent and for example have no interest in going to the Middle East. We would also get too close to our partners there.

 

Quote: NVD Asia: The new booking agent for medium-sized businesses – DVZ (German)

January 2022: 13%

Newsletter: Port crisis in southern China

There has been a recent surge in Covid 19 cases in Shenzhen, affecting the ports of Yantian and Shekou, as well as neighboring ports Guangzhou and the port of Nansha.

Below is also a translation of the current report from the DVZ:

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The Suez Canal crisis has not yet been properly digested, but there are already signs of another massive disruption to maritime supply chains. Rising numbers of cases around the southern Chinese metropolis of Shenzhen are leading to severe handling bottlenecks in the ports of Yantian and Shekou as well as in Nansha (in neighbouring Guangzhou). Maersk is talking about delays of up to 14 days. Delivery stops and restrictions for export cargo as well as cancelled ship calls are the order of the day. It is therefore only a matter of time before the wave reaches the ports in Northern Europe. German seaport freight forwarders are therefore already alarmed.

With regard to the situation in China, Frank Huster, Managing Director of the German Freight Forwarding and Logistics Association (DSLV), said at the association's annual press conference on Thursday morning: "We are concerned about this." No data has yet been received that there is a problem. But if the problem continues to develop, there could be another setback in the supply chains.

Lars Jensen, CEO and partner of the consultancy firm Vespucci Maritime, fears that the situation will escalate further. He estimates that the impact will exceed that of the Suez crisis. According to him, Maersk is already referring to 64 ships from the 2M alliance that have to avoid the ports of Yantian and Shekou. One refers to 52 ships from THE Alliance. OOCL cites 26 units and CMA CGM 11 that are affected.

Ship delays at Yantian Port, a deep-water harbour in Shenzhen, have worsened over the past week, according to Project44. Based on its container dwell time data, the US-based supply chain platform provider expects the port to remain congested throughout the month. According to the data, dwell times in Yantian fluctuate greatly. The minimum is one day. The median, i.e. the measured value that lies exactly in the middle of all the individual data, is given by Project44 as almost 18 days for containers waiting to be loaded (as at 7 June).

The authorities in Guangzhou, the industrial city north-west of Shenzhen, have also imposed restrictions on business activities. "Nansha Port will also feel the effects of these restrictions, which will further exacerbate the congestion problem in Yantian," Project44 continues. According to the experts, 47 ships are approaching the port of Yantian as of 7 June. According to the analysis, a third of the ships are already delayed.

"The recent rise in Covid-19 cases in China has led to a shutdown that could drive the already record-breaking cost of shipping goods from China even higher," says Josh Brazil, responsible for marketing at Project44. According to the company, freight costs between China and the US West Coast rose 156 percent last year, while the trade lane between China and the US East Coast saw an increase of 162 percent. Freight prices between China and Northern Europe rose the most, by 535 percent.

Tense situation intensifies

The German Association of Materials Management, Purchasing and Logistics (BME) in Eschborn is concerned about this development. "The pandemic has not yet been defeated and we will have to live with coronavirus for some time to come," says Carsten Knauer, Head of Logistics/SCM at the BME. Further delays or failures in the supply chains will impair the already tense situation on the transport markets. "In the short term, it is hardly possible to find alternative routes for transport from China. Trucks, rail and air freight are already working at full capacity," Knauer continues. The BME continues to advise establishing suppliers in additional markets and regions in the medium and long term in order to diversify the risk of cancellations or delays.

The obstruction will mean additional empty sailings from Yantian to Hong Kong and the US West Coast in June, Project44 predicts. The port's container capacity could be reduced by around 50 percent and there could be restrictions on shipping companies being allowed to release high-value shipping containers. For the trade routes between Asia and Europe, shipping companies have announced that they will no longer call at ports in the north, such as Tianjin and Quindao, citing congestion problems as the reason.

Difficult planning for importers

Nathan Resnick, CEO of the US B2B procurement platform Sourcify, told business channel CNBC that supply chains have been severely impacted by the sudden and severe restrictions. He added that the situation would make it difficult for companies to plan ahead in the coming quarters. "Especially with the holiday season coming up, many large importers are trying to plan their supply chain for Q3 and Q4." When asked which industries are likely to be most affected, he replied: "At the moment in Guangzhou and Guangdong, it is mainly household goods, footwear, consumer electronics and many other types of products." He continued: "These delays at the ports will lead to a further increase in freight rates and this is something we see continuously throughout the year."

The shipping movement data up to the end of May already indicate a slight drop in China's imports and exports compared to the previous month. TheKiel Trade Indicatorof the Kiel Institute for the World Economy (IfW) shows a negative sign for both exports (minus 1.7 percent) and imports (minus 1.0 percent). Vincent Stamer, head of the leading indicator for global trade, said on enquiry that it is not yet possible to make any further statements. He refers to the next update of the figures on 22 June. (sr/cs/rok)

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