Our advantage is that we are reliable and real
International logistics e-commerce platform ShippingRen has been launched to make freight delivery and collection more secure and carefree. It creates a more convenient environment for negotiation and transaction between freight forwarding companies and freight owners. It provides a series of online services, such as freight rate query, quotation, booking, cargo tracking, and payment. Now, freight owners can easily learn credit ratings and route information of every forwarding company, so that they can choose the most reliable partners. Shanghai-headquartered ShippingRen is led by its founder and CEO Zhou Shihao. He has been in international trading and logistics for more than 15 years. Prior to this, he was a founder of an international logistics company whose annual turnover was more than $60,000,000. Here he speaks to Subir Ghosh about the company's plans and prospects.
As an international logistics e-commerce online-trading platform, what all areas does ShippingRen cover?
ShippingRen, at present, mainly covers the China market. We cover a large number of cargo owners who come from different industries such as fashion, machineries, chemicals. However, as we know, cargo recipients are usually from another country, as are cargo owners. It is often difficult for both sides to communicate with each other. ShippingRen has built an overall cargo tracking system to help cargo recipients from abroad to check the logistics progress. We will set up an English website soon so as to provide international service.
What future do you see for logistics e-commerce platforms around the world?
Currently, e-commerce is the global trend. Due to long trading supply chains and complicated procedures, import and export were ready to be reformed by e-commerce, which is easier and more transparent. But, different countries have different rules for import and export trading. So, just one international logistics platform can hardly cover the entire logistics business around the world. From our point of view, every country will exist on one or two leading international logistics e-commerce platforms.
You have been in the field for over 15 years. What are the landmark changes that you have seen in the logistics business during these years?
The import and export trading logistics situation of each country are totally different. In China, there have been several changes in recent years. First, cargo owners' logistics requirements have improved. Earlier, they just wanted to send out their cargo, but now owners are not satisfied just with this. They are more concerned about related services during logistics, and hope to shorten logistics cycles and simplify related segments. Therefore, ShippingRen will provide a one-stop supervision facility to let owners feel comfortable, besides the convenience provided. Second, market competition is more fierce. Fifteen years ago, there were thousands of forwarder companies in China. Now, there are almost 100,000 forwarder companies in Shanghai alone. ShippingRen hopes to build real credit files and delivery and collection of cargo records, so as to help reputable forwarders gain more orders.
What kind of service does ShippingRen provide to cargo owners and freight forwarding companies?
Earlier, trading and payments between cargo owners and forwarders were usually completed offline. But this model had a lot of defects, such as information asymmetry, credit risk, etc. All these defects would lead to passing of the buck over prices and services. These problems are effectively solved with the help of the ShippingRen online trading platform.
Freight owners do not have to waste time in negotiating with forwarding companies any more. For each batch of goods, ShippingRen accords a standard service process to conduct tracking and show logistics progress, which eventually makes global logistics transportation easier and safer. As for freight forwarding companies, they could find more true owners and pallet information, so as to enhance sales income and get rid of traditional models such as paper, telephone and fax. Therefore, freight forwarding companies can have better interaction and collaboration with freight owners, which results in order processing being clearer and more concise.
Where does ShippingRen stand in comparison with other international logistics e-commerce platforms? What is your USP?
Other international logistics e-commerce platforms only focus on information-releasing. But ShippingRen creatively provides online trading and payment services. We value order tracking and service much more than other platforms do, so as to ensure safety for each order. Otherwise, we can set up systems and mechanisms to guarantee credit of forwarder companies. Our advantage is that we are reliable and real.
What are the key areas to watch out for in the international logistics industry in this decade?
Although the BDI index (or, Baltic Dry Index which is a shipping and trade index created by the London-based Baltic Exchange that measures changes in the cost to transport raw materials such as metals, grains and fossil fuels by sea) keeps decreasing, international logistics have been growing, because of a booming global economy and the continual reduction of trading barriers. International logistics transportation will be more convenient and three-dimensional. Shipping, railways, highways and airlines will construe a compact transportation system. And with the help of modern Internet and technology, transportation efficiency will take big strides.
What is the annual turnover of ShippingRen? What numbers are you looking at in the next five years?
ShippingRen was officially launched in January 2015. Our team has been engaged with this industry for many years. Although ShippingRen began service only two months back, the growth in the number of users on our site has been fantastic. Every day more than 1,000 new users register on our site. In terms of order turnover, we mainly adopt offline matching at this moment. Order turnover is around 50 deals every day. The online order system, including online trading and payment, etc, will officially begin in April. Then, the turnover will increase substantially. In five years, ShippingRen will have more than 5,000,000 users and deals on our site per day will be around 1,000.
Where does the logistics industry in China stand w.r.t the international logistics industry?
At present, the import and export trade volume of China ranks second in the world. China has seven busy container ports. China's international logistics industry plays a prominent role, and market volume is large. This is why ShippingRen chose to enter this industry.
Almost in the same vein, where does the logistics industry in India stand w.r.t the international logistics industry?
India has been developing fast in recent years. The import and export trade volume of India is among that of the top 15 in the world now. India has a bright future, and it will definitely grow much faster in the next decade. Earlier, there used to be very few shipping orders between China and India, but now we are seeing a big increase. According to ShippingRen, the international logistics industry in India has huge market potential and bright prospects. We do hope in the future we can enter the Indian market to provide more efficient and safer logistics services to local import and export enterprises.
How do you perceive the Indian market? If you were to expand here, what exactly would you be on the lookout for?
India has a huge potential market and we will consider stepping into the Indian market at a suitable time. As we know, foreign trading logistics operations are totally different in different areas, and it also involves some national policies. So if ShippingRen intends entering India, we will choose some local companies to be our partners so as to help avert risks.
There is a lot of pressure on the transport and logistics industry to reduce its carbon footprint. What is your stand on that?
Reducing carbon emissions is the trend of international logistics and transportation. We know that a lot of forwarder companies have already adopted more environment-friendly plans. The requirements of environmental protection will be much tougher in the future. This will separate winners from losers. Some small companies will be eliminated from this area. And that would be helpful in our industry upgrading itself.
