Chinese Digital Freight Platform YQN Seeks Growth
from Supply Chain Reconfiguration
E-logistics firm targets new markets amid factory capacity diversification and increasing cross-border e-commerce
Source: Lloyd's List
Supply chain reforms are creating new logistics needs and growth opportunities for YQN’s business, chief executive Zhou Shihao says. But he cautions against aggressive expansion amid a declining container shipping market
YQN CHIEF EXECUTIVE ZHOU: ‘AFTER THE PANDEMIC, NO ONE WILL PUT ALL THEIR EGGS IN ONE BASKET.’
YQN, a Chinese digital logistics platform, is placing a strategic wager on diversified supply chains, amid challenging container shipping market conditions, chief executive Zhou Shihao told Lloyd’s List.
The e-forwarding startup is fortifying its service networks beyond China to align with the shifting global manufacturing and logistics landscape, Zhou said. “After the pandemic, no one will put all their eggs in one basket,” he said.
Many Chinese firms have reportedly set up industrial parks in emerging manufacturing hubs, such as Vietnam and Mexico, to produce and re-export using materials and components from China. This skirts tariffs and meets Western buyers’ de-risking demands to reform supply chains.
The overseas market, particularly emerging markets like Southeast Asia and Latin America, has a growing appetite for Chinese products, driving the expansion of cross-border e-commerce and increasing the demand for shipping services.
These reconfigurations are creating new logistics needs and growth opportunities for YQN’s business, Zhou said. But he is cautious about aggressive expansion.
The container shipping industry peers are experiencing downsizing, especially digital forwarders like Flexport and Freightos, as the market slides down from the extraordinary boom resulting from pandemic disruptions.
Additionally, industry giant Maersk just announced another 3,500 job cuts, raising its total so far this year to 10,000.
Zhou said much of the downsizing owes to over-innovation and business expansion during the feverish pandemic period that now requires market “correction” in the downturn.
While not directly addressing any YQN job cuts, Zhou said his firm’s team size will not change as overseas buildout remains early-stage. “We don’t pursue growth by piling on people,” he remarked.
After raising $150m from venture capitalists in 2021, Zhou had said the funds were most important for providing cash reserve to handle growing uncertainty, but also to hire and incentivise the best available talent.
Established in 2015, YQN now operates 25 global branches, 10 overseas, with over 1,500 employees. Beyond containers, offerings now include air and rail freight, cross-border e-commerce transport, trucking, customs clearance, and warehousing at origin and destination.
After acquiring California’s COPE for cross-border e-commerce last June, YQN now has 13 foreign warehouses, mainly in the US and Canada, one of the world’s largest consumer regions.
Powered by digital tech, these overseas depots are key for value-added services beyond ocean transport, including last-mile delivery, which some expect will rise with e-commerce and supply chain reforms.
Zhou said YQN targets populous nations and trade hubs closely tied to China’s supply chain expansion for overseas growth, including Southeast Asia and Latin America.
At this week’s China International Import Expo in Shanghai, YQN unveiled an enhanced end-to-end service with separate pricing for the ocean, trucking, warehousing, and more, avoiding bundled packages. Enhanced shipment visibility and traceability at warehouses were also introduced.
To better introduce itself abroad, the company streamlined its name from YQNLink to YQN and consolidated regional websites into one.
Source Link：https://www.lloydslist.com/LL1147181/Chinese-digital-freight-platform-YQN-seeks-growth-from-supply-chain-reconfiguration
