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  January 4th, 2017 | Written by

U-Freight Spots Ecommerce Logistics Opportunities

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  • Major potential growth for ecommerce logistics even in established regions.
  • Ecommerce requires new approaches to logistics.
  • U-Freight and CAE offer express customs clearance at origin in China.

The growth potential of global ecommerce is far from exhausted, according to the head of Hong Kong-headquartered international logistics provider the U-Freight Group (UFL).

There is major potential growth even in established regions such as the United States, Europe, and Japan, but it will need new approaches to logistics to ensure a problem-free supply chain, said U-Freight Group CEO Simon Wong.

The group recently attended an Amazon Global Selling Expo in Hangzhou, China. The organizer invites sellers with freight spends of at least $10 million per year to highlight their needs. “We came away convinced that there is much, much more to come from the global ecommerce market and we are in fact only just scratching the surface,” said Wong.

U-Freight attended the gathering together with CAE, the member unit of Air China. They highlighted in particular the potential of the Fulfilment by Amazon (FBA) program.

“We are focusing on the FBA market by offering a service all the way from origin through to delivery, customs-cleared, to the Amazon Fulfilment Center,” said Wong. “Online retailers need to find new models and innovative platforms to deal with the logistics challenges they face. That includes ensuring that they engage with their freight forwarder at an early stage of the process to ensure that they truly understand the complex logistical demands of ecommerce.”

U-Freight and CAE are offering a range of services, including both standard and express customs clearance at origin in China and at destination in the U.S. and Europe, air and ocean line haul and direct drop shipments to the FBA warehouse by courier or dedicated truck.

U-Freight also operates its own ecommerce fulfillment centre in Shanghai for pick and pack services and a similar delivery centre in Los Angeles that can carry out inventory storage, return services or product rework, along with all necessary customs formalities and record-keeping.

“The expo was attended by over 3,000 participants and there was a strong interest in our service offering, particularly in our line haul services and overseas fulfilment centers,” said Wong. “We have now communicated with over 100 Amazon sellers directly as a result of the gathering.”