Shipping Routes Face Overload Ahead of U.S. Elections; Prologis will Keep Investing in China
Latest Dynamics of Logistics & Supply Chains in China's eCom
Here’s our pick for last week’s news:
SF's Supply Chain and Overseas Revenue Jumps over 20%
Milkyway Q3 Profit Rises 19.88% to $25.12M
Ruiyun Cold Chain to Enter Japan, Korea, and Russia by 2025
Feiliks Q3 Revenue Rises 36.19% to $241.50M While Net Profit Falls 95.61%
Prologis will Keep Investing in China
CIMC Net Profit Soars 117.23% in H1 2024 with Overseas Sales at 54.45%
JD Express International Expands to Seven Southeast Asian Countries
S.F. Express Singapore Launches a New Airside Logistics Center
Shipping Routes Face Overload Ahead of U.S. Elections
SF's Supply Chain and Overseas Revenue Jumps over 20%
In September, SF Holding recorded a revenue of $3.48 billion across its express logistics, supply chain, and international sectors, up 9.01% compared to last year.
The express logistics segment alone generated $2.56 billion, a 4.75% increase, with 1.14 billion packages delivered, a 12.64% jump. However, the revenue per package dropped to $2.25, down 7.03%. The supply chain and international business brought in $921.94 million, up 22.89%.
Milkyway Q3 Profit Rises 19.88% to $25.12M
On October 17, Milkyway Intelligent Supply Chain Service Group announced a revenue of $499.56 million for Q3 2024, a 14.9% increase from last year. The net profit for shareholders was $25.12 million, up 19.88%. For the first three quarters this year, Milkyway's revenue totaled about $1.34 billion, a 25.26% jump, with net profit around $68.76 million, up 21.68%.
Founded in 1997 and based in Shanghai, Milkyway offers a full range of logistics services, including sea, air, and rail transport. After going public in July 2018, the company has expanded its services to include freight forwarding, mobile logistics, integrated warehousing, and specialized distribution.
In its latest annual financial statement, the main revenue sources were 44.42% from MCD (Chemical Distribution), 26.90% from MGF (Global Forwarding), 20.83% from MWT (Warehousing & Transportation), 7.75% from MGM (Global Mobility), and 0.10% from other services.
Ruiyun Cold Chain to Enter Japan, Korea, and Russia by 2025
Ruiyun Cold Chain made its international debut in Thailand this March. Recently, CMO Yao Xiaowei announced plans for the second half of 2024 to set up direct routes between China and six Southeast Asian countries, as well as services connecting mainland China with Hong Kong and Macau for fresh produce. The company plans to expand into Japan, Korea, and Russia by 2025, and aim to reach the Middle East by 2028, transforming their international operations into supply chain services.
Yao pointed out that with tough competition in the domestic cold chain market, Ruiyun International will be a new growth focus. "Our goal is to create a tech-driven cold chain logistics platform that offers full 4PL solutions for fresh produce distribution worldwide."
Founded in 2020, Ruiyun Cold Chain has raised over 1 billion yuan ($140.33 million) in funding. In just four years, the company has achieved a 100% annual growth rate, processing over 10,000 tons of goods daily, and has become the largest service platform in China's cold chain B2B market. In July, founder Zheng Ruixiang announced the company's revenue doubled in the first half of the year.
Feiliks Q3 Revenue Rises 36.19% to $241.50M While Net Profit Falls 95.61%
Feiliks has released its Q3 2024 financial statement, reporting a revenue of $241.50 million, a year-on-year increase of 36.19%. However, the net profit attributable to shareholders dropped to $123472.23, a huge drop of 95.61%. For the first three quarters this year, Feiliks achieved a revenue of $701.63 million, up 41.74%, while net profit fell to $3.12 million, down 46.60%.
Established in April 1993, Feiliks went public on the Shenzhen Stock Exchange's ChiNext board in July 2011. The company operates a service network that spans 29 provinces in China and over 50 countries and regions worldwide, offering a wide range of logistics services to numerous Fortune 500 firms, including supply chain solutions, integrated warehousing, and various modes of transportation.
Prologis will Keep Investing in China
Prologis, a top player in modern logistics investment and operations, released its Q3 financial statement. As of September 30, 2024, the company reported total revenue of $6.001 billion, down 2.17% from last year. However, net profit for shareholders went up to $2.453 billion, a 1.01% increase.
The company manages around 75.09 million square meters of assets, mainly in the U.S. Since entering the Chinese market in 2003, Prologis has established 44 logistics centers in 24 cities, covering 5.3 million square meters and offering top-notch logistics solutions for manufacturers, retailers, e-commerce sellers, and third-party logistics. In 2019, Prologis expanded in China by creating a $1.7 billion logistics fund.
Prologis aims to bring in new capital and partner with emerging investors to help Chinese companies go global.
CIMC Net Profit Soars 117.23% in H1 2024 with Overseas Sales at 54.45%
In the first half of 2024, China International Marine Containers (Group) Co., Ltd. (CIMC) reported revenue of $11.10 billion, marking a year-on-year increase of 30.61%, while net profit attributable to shareholders surged to approximately $121.52 million, up 117.23%. Domestic sales made up around 45.55% of their total, while international sales were about 54.45%.
This year, the global shipping and offshore engineering have been booming. CIMC‘s offshore engineering division brought in $1.09 billion, a rise of 88.95%. By June 30, CIMC RAFFLES, their offshore arm, saw strong growth in new orders, with the total value of orders on hand climbing 20.9% year-on-year to $6.18 billion.
JD Express International Expands to Seven Southeast Asian Countries
JD Express International is expanding its reach, now offering express delivery to seven Southeast Asian countries, including Singapore, Malaysia, Thailand, Vietnam, Indonesia, the Philippines, and Brunei. Consumers in these countries can now receive packages from JD Express in China. And domestic users can easily order through the JD Express mini-program "Send International," with pickups available within an hour.
Recently, JD Express International also launched delivery services to Japan and South Korea, allowing consumers there to receive packages from China. In recent years, JD Express has been ramping up its international efforts. On October 15, JD Logistics officially announced that by the end of this year, JD Express International's service will expand to nearly 80 major countries and regions worldwide.
S.F. Express Singapore Launches a New Airside Logistics Center
On October 16, 2024, S.F. Express Singapore celebrated the opening of its new airside logistics center at Changi Airfreight Centre, enhancing its import and export operations and significantly reducing on-airport processing times from 4-6 hours to just 1.5-2 hours. The facility's launch aligns with S.F. Express's goal to expand its logistical capabilities across Southeast Asia and beyond, enhancing its role in global logistics networks.
Additionally, Qingdao SF Express has launched a new cross-border e-commerce operation center at the Huajun Logistics Center, which will speed up its logistics to Southeast Asia, particularly towards Japan and South Korea, by nearly 50%.
Shipping Routes Face Overload Ahead of U.S. Elections
Several freight forwarders have revealed that by the end of October, almost all shipping routes are facing capacity overload, especially towards the U.S., where this situation may extend into November. Freight rates for routes to Europe and America have also seen a slight rise since early October.
Lin Jie, president of Worldwide Logistics, pointed out that the current overload is no longer tied to the traditional peak shipping season for Christmas or the pre-Lunar New Year rush; rather, it's more about the upcoming U.S. elections in November. "The election results could affect U.S. tariff policies and make clients ship their goods sooner."
Lin also mentioned that Chinese shippers have changed their shipping patterns from being driven by overseas demand to being based on predictions of end-market sales and overseas market conditions. Currently, Chinese shippers mainly stock goods in overseas warehouses for sales.