1. SHEIN's Semi-Managed Mode Officially Launches Online

On May 14th, SHEIN's semi-managed mode officially launched at the beginning of May, with the United States as its initial station. Under SHEIN's semi-managed mode, sellers can provide supply prices and participate in pricing and operations with SHEIN's assistance, while retaining autonomy in product selection. Products selected under SHEIN's semi-managed mode must also have local inventory overseas and can be fulfilled locally (shipped directly from the seller to the consumer).

SHEIN's semi-managed mode currently boasts the advantage of zero store opening costs, exempting sellers from commissions and deposits. However, it also sets clear admission standards: only company registrations are accepted, while individual or self-employed registrations are temporarily unsupported. Additionally, products must weigh at least 400 grams, with specific categories such as clothing, wigs, jewelry, and food excluded from the scope of sales. Regarding payment settlements, SHEIN's semi-managed mode adopts settlement in a public USD account, supporting third-party payment service providers. The payment cycle is 7 days after the delivery is confirmed, with an overall payment period of about half a month.

Source: iyiou

2.SHEIN's Wanqiao Smart Industrial Park project in the Greater Bay Area commenced construction after signing the contract.

On May 14th, the signing and commencement ceremony for the SHEIN Wanqiao Smart Industrial Park project was held in the High-tech Zone of Zhaoqing. The establishment of this project will further enhance the cross-border e-commerce supply chain support system in the High-tech Zone of Zhaoqing and promote the expansion and improvement of trade in new formats.

With a total investment of 5.6 billion yuan, SHEIN deepens its investment on the basis of its original industrial layout. It collaborates with Zhaoqing Dawang Zhuchuan Cargo Terminal Co., Ltd., leasing a 260,000 square meter factory building. The main construction content includes cross-border e-commerce operations and the establishment of a smart digital factory. By introducing advanced technologies in SHEIN's intelligent supply chain and digital flexible supply chain, the project integrates smart manufacturing, intelligent logistics, and cross-border e-commerce, aiming to create a distributed smart logistics industry system with international and modern standards.

Source: Southern Plus

3.Southern Airlines Logistics signed a cooperation agreement with the High-tech Zone of Zhaoqing to establish an international cargo station project.

On May 14th, Southern Airlines Logistics' subsidiary, Baiyun Logistics Company, officially signed a framework agreement for cooperation with the Management Committee of the High-tech Industrial Development Zone in Zhaoqing, establishing the Da Wang Cross-border E-commerce International Cargo Station project.

Once established, the Da Wang Cross-border E-commerce International Cargo Station will integrate comprehensive services such as cargo declaration and customs inspection. Employing a "Cargo Station + Customs" and "Cargo Station + Industrial Park" model, it will extend port functions to customers' doorsteps, seamlessly connecting the source of goods with the airport. This initiative aims to provide enterprises with complete logistics integration systems and efficient supply chain solutions, thereby further enhancing the timeliness of logistics transportation for e-commerce goods.

Source: Southern Airlines Logistics

4. Maersk and Dafeng: Freight rates have risen to around $6,000

On May 14th, Maersk and Dafeng once again issued notices of rate increases, raising the Freight All Kinds (FAK) rates for the Asia to Northern Europe route. Maersk announced that starting from June 3rd, the FAK rates from basic ports in Asia to Northern Europe ports including Rotterdam, Gdansk, Felixstowe, Aarhus, Gothenburg, and Oslo will be increased. The rates for small containers will range between $2825 and $2975, while for large containers, it will be between $5500 and $5900.

Subsequently, Dafeng announced that effective from June 1st, 2024 (loading date at the originating port), the FAK rates for goods shipped from Asian ports (including Japan, Southeast Asia, and Bangladesh) to Northern European ports will be raised to as high as $6000/FEU. This adjustment, compared to the previously announced rates taking effect from May 15th, marks another increase, with small containers seeing a $500 increase to $3200 and large containers seeing a $1000 increase to $6000. Industry insiders predict significant rate hikes in the latter half of May.

Source: Yihangyun

5.Maersk urgently leases 125,000 containers.

On May 14th, Maersk announced that the impact of the situation in the Red Sea is expanding and continues to disrupt the entire industry. To ensure the safety of crew, vessels, and cargo, Maersk will continue to sail around the Cape of Good Hope in the foreseeable future. However, due to the expanded risk zones and the spread of attacks to farther sea areas, the ripple effects include bottlenecks, port congestion, vessel delays, as well as shortages of equipment, capacity, and containers.

Maersk expects a loss of 15-20% of capacity in the industry for the second quarter on the Far East to Northern Europe and Mediterranean routes. In response, Maersk has taken measures to address the current situation, hoping to increase sailing speed and capacity. To safeguard the supply chain, Maersk has additionally leased over 125,000 containers.

Source: China Shipping Weekly

6.Amazon will charge a return processing fee for such items.

On May 14th, Amazon announced that sellers with fewer than 25 items per month fulfilled by Amazon (FBA) will be exempt from return fees for those items. Additionally, for sellers enrolled in Amazon's new product storage discount program, Amazon will waive return processing fees for up to 20 eligible parent ASINs per month. Returned items must be delivered to Amazon fulfillment centers within 180 days after the first inventory receipt. For clothing and footwear items, Amazon will charge a return processing fee for each item returned by the buyer.

Source: Amazon Global Selling

7.Newegg has received a notice letter from NASDAQ.

On May 14th, Newegg Commerce, Inc. announced that it has received a letter from the Listing Qualifications Department of NASDAQ Capital Market. The letter indicates that Newegg currently does not meet the minimum bid price requirement set forth in NASDAQ Listing Rule 5550(a)(2) because the closing price of the company's common stock has been below $1.00 per share for the last 30 consecutive business days. Pursuant to NASDAQ Listing Rule 5810(c)(3)(A), Newegg has 180 calendar days, or until November 4, 2024, to regain compliance with NASDAQ's minimum bid price requirement.

Source: Newegg Official Website

8. Shopee's local fulfillment orders increased by over 270% in 2023 compared to 2022.

On May 14th, at the Shopee Local Fulfillment Seller Conference, Liu Jianghong, General Manager of Shopee's Cross-border Business, reviewed the robust development of local fulfillment business in 2023. Over the past year, local fulfillment has driven rapid growth in seller business, with local fulfillment orders increasing by over 270%, transaction volume growing by over 250%, and the number of SKUs in local fulfillment stores increasing by over 700%. In 2024, Shopee's local fulfillment services will undergo comprehensive upgrades, covering more sites and providing sellers with more incentives and support. This includes optimizing cost structures, introducing high-quality service providers, and improving systems.

Source: Shopee

9.Ezhou Huahu Airport enters the national "top ten" for the first time.

On May 14th, the top ten rankings for cargo and mail throughput at airports nationwide for the first quarter were announced. Ezhou Huahu Airport ranked sixth, with the fastest growth rate nationwide. In the first quarter, Ezhou Huahu Airport handled a cargo and mail throughput of 151,000 tons, surpassing Zhengzhou Xinzheng Airport, Chengdu Shuangliu Airport, and Chongqing Jiangbei Airport for the first time, making it into the national top ten. It has become the airport with the largest cargo and mail throughput in the central and western regions, with a significant increase of 1465.02% year-on-year, ranking first in growth rate nationwide.

Since the beginning of this year, the number of freight flights taking off and landing at Ezhou Huahu Airport has remained steadily at fourth place nationwide. In the first quarter, it surpassed Shanghai Pudong Airport to become the top-ranked airport nationwide. The airport had a peak of 120 freight flights taking off and landing in a single day, with a cargo and mail throughput of nearly 3000 tons.

Source: Ezhou City

10.Zhengzhou Airport opens its first direct cargo route to Atlanta/Dallas.

On May 14th, a Boeing 747 freighter operated by Kalitta Air took off from Zhengzhou Airport, bound for the southern U.S. city of Atlanta. This marked the successful inaugural flight of the regular international cargo route from Zhengzhou to Atlanta/Dallas. It is the first time that Zhengzhou Airport has opened a direct cargo route to Atlanta/Dallas. The route is scheduled to operate three times a week on Mondays, Thursdays, and Saturdays, with flights departing from Zhengzhou to Atlanta on Mondays and to Dallas on Thursdays and Saturdays. The main cargo carried on this route consists of cross-border e-commerce goods.

Source: CCTV News Client

11. Nanning Airport Economic Zone launches Nanning-Kuala Lumpur all-cargo flight route.

On May 14th, a fully-loaded all-cargo aircraft took off from Nanning Wuxu International Airport, bound for Kuala Lumpur, Malaysia. This marks a new breakthrough for Nanning Transportation Investment Group in the construction of cross-border logistics channels. The inaugural flight of the Nanning to Kuala Lumpur cargo route carried a total of 38 tons of cargo, primarily transporting various types of cross-border e-commerce goods.

Source: Nanning Daily

12. Xiamen initiates a pilot program for cross-border e-commerce cross-border customs clearance returns.

On May 14th, Xiamen officially implemented the "2024 Special Action Plan to Promote Facilitation of Cross-border Trade." The plan aims to further optimize the facilitation of new drivers of foreign trade by enhancing support services for cross-border e-commerce. It includes the initiation of a pilot program for cross-border e-commerce cross-border customs clearance returns, enabling the consolidation of various formats of exports such as cross-border e-commerce and general trade. Additionally, the plan supports the export of new energy vehicles and lithium batteries, improving containerized lithium battery transportation services. Furthermore, it outlines the establishment of a mechanism for carbon footprint labeling certification management and the initiation of the construction of a public service platform for carbon footprint.

Source: People's Daily Online

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Cross-border E-commerce Logistics Bai Xiaosheng