1. The Paradox Behind Heavy Asset Investments Overseas

The ceiling on air freight capacity has forced e-commerce platforms to introduce semi-managed models to continue expanding their business share. More and more merchants are adopting the model of shipping goods to overseas warehouses via sea freight for stock preparation. At the same time, semi-managed products differ from fully managed products. With limited air freight capacity, products suitable for air transport will become fewer, and low-priced daily consumables will increasingly rely on sea freight.

Different business models correspond to different user groups and cost structures, with logistics changing along with the flow of commerce. Currently, the semi-managed model has greatly boosted the sea freight and overseas warehouse industry chains. Many companies are beginning to invest and lay out their plans in the sea freight mainline and overseas warehouse fields. It can be said that the trend of the semi-managed model has accelerated the overseas expansion of more Chinese cross-border e-commerce logistics companies, prompting them to invest heavily in assets overseas and construct basic logistics facilities.

However, this presents a paradox. The layout actions of cross-border logistics companies tend to be relatively "slow." Investing heavily in assets overseas requires significant capital and time costs. In contrast, e-commerce platforms are relatively "flexible." In the cross-border e-commerce industry ecosystem, the leading companies with traffic hold strong influence over all suppliers, service providers, and sellers. They set the industry's rules of the game, but these rules are constantly changing. Additionally, overseas tax policies are always evolving, presenting more uncontrollable factors for the cross-border logistics industry, leading to many uncertainties for logistics service providers.

For example, some companies have invested in fixed assets such as customs clearance ports, customs brokers, and bonded warehouses. If future changes in customs clearance policies or platform policies prevent goods from being cleared or fulfilled at the invested ports or warehouses, this could result in a waste of existing fixed asset investments and infrastructure.

Therefore, cross-border e-commerce logistics companies must consider this point carefully when making heavy asset investments overseas. They must avoid resource misallocation due to changing platform traffic rules and demand, which could lead to misaligned fixed asset investments or resource facilities.

2. Factors to Consider for Heavy Asset Investments Overseas

Currently, many cross-border e-commerce logistics companies' biggest customers are becoming e-commerce platforms, making it challenging for logistics companies to engage in long-term strategic planning. Due to the frequent introduction of new models and policies by e-commerce platforms, it is almost impossible for cross-border logistics companies to formulate 5-year or 10-year plans. Under the platform's rules, cross-border logistics companies primarily play a supportive role, focusing on short-term strategic planning and execution.

In a rapidly changing external environment and with evolving customer demands, what types of companies can gain a development advantage?

Firstly, cross-border logistics companies with strong execution capabilities will have a significant advantage. In the future, the service capabilities of logistics providers will be tested on their ability to quickly iterate and update their organization, enhance core capabilities and skills, and update and iterate business products according to the e-commerce platform's needs. Companies that can respond quickly and execute effectively to platform demands will have substantial growth potential and space.

Secondly, companies investing in infrastructure in cross-border logistics mainlines, customs clearance, warehousing, and delivery will also see good development. However, when investing in infrastructure resources, logistics companies need to consider the underlying risks and whether the investments are proportional. In the cross-border logistics industry, several types of infrastructure resources will never become obsolete, including:

1.Movable Fixed Assets like Container Ships, Aircraft, and Trucks:

These fixed assets can be relocated, offering flexibility to quickly adapt to platform changes. For instance, if a platform requires a flight from Hong Kong to Los Angeles today and from Shanghai Pudong to New York tomorrow, having their own aircraft allows companies to respond flexibly. Therefore, mainline fixed assets are very valuable assets.

Additionally, having truck resources in the transit segment also falls under movable fixed assets. Companies can deploy these assets according to changing customer needs. Frequent relocation and easy dispatchability make such asset investments a favorable direction.

2.Customs and Supervised Warehouse Facilities at Key Ports:

The location of these facilities is crucial. If they are situated in central cities or key node cities in overseas countries, the risk is minimal, as any platform will likely prioritize injection at these ports in the future. However, facilities at more remote ports require careful consideration. Similarly, warehouse location is very important. If the warehouse location is incorrect from the start, subsequent actions are likely to be flawed.

Therefore, when making heavy asset investments in cross-border e-commerce logistics mainlines, customs clearance, warehousing, and delivery, companies must consider which infrastructure resources can withstand future uncertainties and which asset investments can yield long-term sustainable returns. These considerations are crucial for deep reflection by many companies.

END

Official Account: Cross-border E-commerce Logistics Baixiaosheng