YQN's Digital Mission to Simplify Global Shipping
Caixin Global
2024-07-26 11:58:42

From China to the World: YQN's Digital Mission to Simplify Global Shipping

In today's interconnected global trade landscape, international shipping presents numerous challenges for businesses worldwide. As supply chains stretch across continents and geopolitical uncertainties increase, the need for adaptable, efficient logistics solutions has become paramount.

Recognizing this pressing need, YQN emerged from Shanghai in 2015 with a bold mission to simplify global shipping. Originally founded in China, YQN set out with the goal of bringing Chinese products to the world. Over the past decade, the company has significantly expanded its global presence, establishing local companies in over ten countries across North America, Latin America, and Southeast Asia, becoming a “Global Digital Logistics Expert.”

At the core of YQN's approach is a keen understanding that the myriad challenges in international logistics stem from one fundamental issue: excessive complexity. Whether it's opaque pricing, convoluted booking processes, or inefficient tracking systems, YQN sees these hurdles as symptoms of an overcomplicated ecosystem.

Simultaneously, businesses are increasingly demanding affordable and reliable services to remain competitive in the global marketplace. The rise of e-commerce has further intensified the need for comprehensive, end-to-end logistics solutions that can manage the intricacies of cross-border transactions and last-mile delivery.


Simplifying the Complexities of Global Shipping

The shipping industry still heavily relies on traditional methods. Opaque pricing stems from the complex and fragmented nature of supply chain channels. This underscores the need for a digital solution that can directly connect to real-time pricing from major shipping companies, ensuring greater efficiency and transparency.

Convoluted booking processes call for online technologies to streamline and expedite reservations. Furthermore, inefficient tracking systems need to be replaced with real-time visualization tools that can accurately display the location of goods at any given moment.

Cash Zhou, YQN founder and CEO

Cash Zhou, founder and CEO of YQN, said a major challenge in the logistics industry lies in the inefficient matching of shipping capacity with customer demands.

"Every day, we have numerous ships with varying space availability and a diverse range of customer needs," Zhou explains. "Some prioritize cost, others speed. Some prefer direct routes, others are open to transshipments. The real challenge is optimizing this complex matching process, ensuring customers find the exact shipping solution that meets their specific requirements."

This complex matching process Zhou describes is at the heart of many industry challenges. When shipping capacity and customer needs are misaligned, it leads to inefficient capacity utilization, increased costs, and longer transit times. Vessels may sail partially empty on some routes while others are congested, resulting in higher expenses for both clients and carriers.

Moreover, this mismatch often forces clients to compromise on their priorities, whether cost, speed, or specific routing preferences, leading to unpredictable delivery times and decreased satisfaction.

To address this pain point, YQN has developed a digital platform that provides clients with streamlined access to its comprehensive range of services through a user-friendly interface.

Zhou emphasizes YQN's strategic vision in digital logistics. When the company launched its platform in 2015, he recognized it as an ideal moment, with digitalization in the industry gaining significant momentum. Technology empowerment was becoming essential to simplify shipping and enhance efficiency.

What makes YQN special is its extensive database of reliable information, accumulated through long-term collaborations with various supply-side partners, including ship owners and airlines. According to Zhou, YQN’s platform is equipped with advanced technologies such as machine learning, enabling it to effectively connect clients' needs with available resources.

Moreover, YQN distinguishes itself from conventional matchmaking platforms in the market by primarily offering self-operated services. Rather than merely connecting clients with third-party providers, YQN directly procures services from suppliers. This approach grants YQN greater control over service quality and reliability, ensuring a higher level of consistency for its clients.

YQN provides a seamless platform for clients to access these services through its Intelligent Order Management system. This integrated system offers essential tools such as rate searching, online booking, digital order fulfillment, customized dashboards, and real-time logistics tracking.

YQN also provides nine free logistics tools to the public. These tools include cargo tracking, vessel scheduling, port status updates, and more, allowing users to access critical information by connecting with major ports, shipping companies, and customs.

Currently, the company's platform and other services serve over 35,000 business clients across diverse industries, including automative and parts, smart manufacturing, and wind and solar energy.


One-stop Service

Zhou emphasizes that YQN is more than just a digital platform. He points out that a platform's effectiveness depends on the resources behind it and its execution capabilities. He underscores that what customers truly need is reliable yet affordable service. A platform must not only connect stakeholders but also deliver consistent, cost-effective solutions to meet these client expectations.

YQN offers a comprehensive suite of services, providing end-to-end, one-stop solutions that cover the entire supply chain from origin to destination.

At the loading place, YQN provides essential services including trucking, customs declaration, warehousing and distribution, and insurance. An intelligent warehouse system enhances goods security and prevents losses, ensuring peace of mind for clients.

For cross-border transportation, YQN offers a range of options to suit diverse needs. Its sea freight service boasts direct links to major carriers and partnerships with more than 3,500 global suppliers, providing access to over 40,000 shipping products globally, guaranteeing space and fixed rates, and providing stability and reliability in ocean transport.

YQN's air freight service covers major airports worldwide and offers charter solutions, catering to time-sensitive shipments with speed and flexibility. Rail freight options include CR Express for FCL, LCL, and door-to-door services. A unique China-Europe service combines rail and trucking for efficient door-to-door solutions, bridging continents seamlessly.

At the destination, YQN leverages local branches in key markets across North America and Asia, including the United States, Mexico, Brazil, Japan, Thailand, Vietnam, Singapore, Malaysia, the Philippines, and Cambodia. These strategically located branches handle crucial services such as bill of lading switch, customs clearance, trucking, warehousing, and last-mile delivery.

YQN's wealth of resources is underpinned by its strategic shipping route network, with particular strengths in five key regions.

In Latin America, YQN boasts over 20 years of regional expertise, covering the markets of Mexico, the West Coast of South America, the Caribbean, and the East Coast of South America. The company has secured contract rates with 98% of Latin American shipping companies. Additionally, YQN operates regular shipping routes from over 30 ports in China to Latin America.

Southeast Asia is another area of focus, with YQN partnering with more than 20 leading shipping lines in the region. The company's network covers over 150 routes and more than 90% of major ports, providing extensive logistics services including import and export transportation. YQN has established branches in key locations such as Thailand, Vietnam, Singapore, Malaysia, the Philippines, and Cambodia to better serve local markets.

In the Middle East, Indian Subcontinent and Red Sea region, YQN has forged direct API links with more than 15 shipping companies, including major players like WHL, ZIM, and MSC. The company offers warehousing and local logistics for inland freight, covering 93% of ports in this strategically important area.

Drawing on nearly two decades of industry experience in Japan and South Korea, YQN has developed direct partnerships with over 10 major shipping companies. This extensive network supports comprehensive services including sea transport, sea-rail intermodal transport, and river barge services. The company's multilingual customer service team is proficient in Japanese, Chinese, and English, ensuring clear communication and support. At the destination, YQN provides a full suite of services, from bill of lading switching and customs clearance to trucking, warehousing, and final delivery.

In the United States and Canada, YQN has cemented long-term partnerships with a range of shipping companies, bolstered by proprietary online and offline contracts. The company's booking services span all Chinese ports as well as other major Asian ports, guaranteeing wide coverage. Destination services in North America are efficiently managed by YQN's United States branch, ensuring reliable and streamlined service delivery for clients.


E-commerce Empowerment

E-commerce has become a pivotal force in global trade, reshaping the logistics landscape and creating new opportunities for growth. Recognizing this trend, YQN has strategically positioned itself to meet the unique challenges of cross-border e-commerce logistics.

YQN's end-to-end cross-border e-commerce services are designed to meet the diverse needs of global online retailers. By leveraging its extensive network of warehouses and tailored logistics solutions, YQN empowers e-commerce businesses to expand their reach and enhance their operational efficiency.

In Latin America, YQN offers a comprehensive suite of services that significantly reduce transit times to within 30 to 40 days. These services include cross-border transport, warehousing, and distribution all in one package. The company's DDP and DAP services, along with free NOM certification, further streamline the process for e-commerce sellers.

YQN's localized team enhances security with armed escort services, while its advanced warehousing management and B2C services, including labeling, ensure smooth operations from storage to last-mile delivery.

For the North American market, YQN leverages its over 9 years of experience and established relationships with major U.S. accounts to offer substantial discounts. The company's network of 13 warehouses, totaling over 3 million square feet and spanning the U.S. East, West, and Southeast regions, provides extensive coverage.

This infrastructure enables YQN to connect with major online and offline channels, covering 80% of the U.S. market for medium and large-sized item deliveries. This positioning is particularly advantageous for e-commerce businesses dealing bulkier products.

In Africa, the Middle East, and South Asia, YQN offers charter flights to numerous local airports, enabling faster delivery times for e-commerce goods. The company's 24-hour customs clearance service by local teams ensures minimal delays at borders. YQN also provides multiple delivery modes, including express, LTL, and FTL, with high delivery success and collection rates, catering to the varied needs of e-commerce businesses in these regions.


Proactive Service

While YQN's digital platform is a cornerstone of its operations, an equally important aspect of the company's approach is reflected in its execution capabilities. YQN has embraced a philosophy of proactive service as a key part of its business model. A dedicated team of over 500 customer service staff are available in real-time to respond to client needs and proactively offer customized logistics solutions.

"Our commitment is to always provide our clients with options when changes occur, and to proactively notify them of any developments," Zhou explains. "We don't wait for clients to come to us with problems. Instead, we anticipate potential issues and reach out to them first with solutions."

This proactive approach means that YQN continuously monitors shipments, market conditions, and potential disruptions. When changes or challenges arise, the company promptly alerts its clients and presents them with a range of options to address the situation. This level of responsiveness helps clients avoid costly delays and make informed decisions quickly.

But how does this approach benefit clients in practice? A recent case illustrates how anticipating challenges and offering timely solutions can make a crucial difference:

Just before the Chinese New Year in 2024, a Chinese manufacturing company entrusted YQN with shipping a batch of large, intelligent transportation equipment. The shipment was time-sensitive and challenging due to the holiday season and the ongoing Red Sea crisis, which had significantly reduced the availability of suitable cargo ships.

YQN's Project Center, leveraging its extensive resources and experience in oversized and overweight logistics, not only secured space on a German cargo ship but also identified an opportunity to optimize the shipping route. By aligning the shipment with another cargo from South Korea to Australia, YQN proposed a new route that would reduce transit time by 3 days to the port and 5 days to the final destination, while also lowering costs significantly.

Despite the client having already placed an order, YQN proactively informed them of this better option. The client, pleasantly surprised, agreed to the change. YQN's team quickly updated the solution, reconfigured the cargo, revised contracts, and coordinated with the destination port services to complete all processes before departure.

Impressed by YQN's efficiency and the improved shipping terms, the client decided to double their shipment volume at the last minute. This increase posed additional challenges for loading and securing the oversized equipment.

The shipment now included nearly 20 pieces of oversized and overweight cargo, each averaging 30-40 tons, which needed to be loaded onto the ship from the dock. YQN worked closely with the ship owner to modify onboard cranes to meet the specialized lifting requirements, ensuring the safe transport of the enlarged shipment.

YQN's proactive approach and expertise saved the client time and money while showcasing their specialized capabilities. Leveraging extensive experience with oversized cargo, YQN identified optimal shipping resources and helped reduce additional charter risk fees. These often-overlooked fees can cost inexperienced clients hundreds to thousands of dollars for large cargo items.

Recognizing this value, the client formed a lasting partnership with YQN, now seeking their advice even on non-logistics matters. Another notable statistic shows that over 80% of clients choose to work with YQN again after their initial experience.


Strategic Growth: YQN's Vision Ahead

Zhou observes a significant trend in the global logistics industry: the increasing dominance of scale, which will largely determine where clients turn for services. This trend suggests that smaller and medium-sized enterprises may soon face challenges in the market.

Over the past decade, YQN has strategically positioned itself well to align with this trend. The company underwent rapid expansion from 2018 to 2019, swiftly establishing a presence in more than 10 countries and achieving a substantial initial scale.

Zhou characterizes that period as one of "passionate expansion" but notes that the company is now shifting to a more rational approach, focusing on deepening and solidifying YQN's operations within these countries.

"Our current rational approach is preparing us for the next phase of growth," Zhou said, adding that Europe, Australia, and the Middle East will be the company's next targets.

As part of its strategy to increase scale, YQN has already served some large clients but will focus more on major clients in the future.

YQN's expansion is supported by strong management and industry-leading digital capabilities. On digitization, Zhou humorously said that while he doesn't want to forcefully apply the trendy "AI" label, his company is the only private logistics firm in China with a dedicated algorithm team.

These digital capabilities not only help simplify shipping for clients, earning their trust, but also empower YQN internally, providing crucial support for its next expansion phase.

Zhou highlighted YQN's unified digital platform as a key enabler of its expansion strategy. This system integrates all aspects of operations across new markets, ensuring consistent quality and efficient fulfillment of commitments as the company grows.

Regarding YQN's expansion strategy, Zhou likened his company to one that "sells shovels (for gold diggers)," emphasizing that they adhere to the fundamental logic of following customer demand.

"We go where the shipping needs are," Zhou said simply. "And wherever we are, we aim to make shipping simpler, more efficient, and more accessible for our clients."


About YQN:

Established in 2015 and headquartered in Shanghai, YQN is one of the leading forces in global digital logistics. We offer a wide array of seamless solutions spanning sea, air, and rail freight, alongside a full suite of services including customs clearance, insurance, and overseas warehousing. With a significant global presence, our network extends to international branches in regions including North America, Southeast Asia, Latin America and Middle East, with specific locations in the United States, Singapore, Thailand, Vietnam, Mexico, among others, and also spans major Chinese cities.

Boasting a global footprint and a comprehensive network comprising over 300 shipping and airline companies, alongside over 3,500 trusted partners, YQN is dedicated to providing efficient and reliable international logistics services designed to streamline operations and enhance the customer experience. Discover more about our innovative solutions by visiting our website at www.YQN.com, or connect with us on LinkedIn, Facebook, Twitter, and YouTube at @YQN.

For more information, please contact:

media@yqn.com