Trading With China? Here Are 5 Reasons Why GoFreight Is the Perfect Freight Logistics Software for Your Business
Staff Content Writer
December 7, 2022 • 5 minutes read
Subscribe to access the latest trends and insights in the logistics industry.
China is the second-largest economy in the world. It is also the world leader in manufacturing, accounting for 28.7 percent of all manufacturing output. China is also the third biggest trading partner of the US, accounting for a total trade of $657.4 Billion, $506.4 Billion of which is from imports. With the passage of the Phase-One Agreement between the two countries, a more robust two-way trade is expected, resulting in a healthier balance. For freight forwarders, getting embracing transactions involving Chinese trade is imperative.
The Challenges of Trade With China for Freight Forwarders
There are several challenges that freight forwarders, and the supply chain in general, must face constantly. The massive trade volume is created by the constant demand for manufactured goods from China and made more challenging by highly-regionalized manufacturing centers, differences in language and regulations, and exports from China concentrated in just a few huge ports. However, there are also other factors to consider including:
- Strict Lockdowns Due to COVID-19
The current supply chain relies heavily on the delicate balance maintained by manufacturers, freight forwarders, freighters, distributors, and even fulfillment centers. Any disruption produces substantial gridlocks, which have strained the supply chain. However, events resulting from COVID-19 have unraveled these risks. For instance, the port of Ningbo, the third-busiest in the world, had to shut down for two weeks in the summer of 2021 because of one positive case of COVID-19. Massive adjustments had to be made to ensure goods reached their intended destinations in time.
- Language Barrier
The context of the Chinese and English languages are vastly different, which necessitates people who speak both languages to be involved in such transactions. Though companies are taking steps on both shores to solve this problem, the language barrier hinders facilitating ease of trade. Robust systems implemented by Chinese distributors and a heavy presence of US freight handlers and freight forwarding in China have mitigated this issue. However, there are instances when language becomes a problem. For example, regardless of scale and complexity, order exceptions are especially prone to confusion and misunderstanding.
- Licensing and Permits for Freight Forwarders in China
Installing a satellite office in China is one way to ensure a better flow of operations for US freight forwarding companies. However, like any other foreign investments made in China, a company is required to have a Legal Representative in China to complete the verification process. This matter is challenging for designated legal representatives located in the US. Once established in China, a business must ensure that the appropriate licensing, statutory filings, and permits are filed according to Chinese laws and regulations. With favorable or constricting regulations being filed occasionally in China, freight forwarders should be updated to ensure they adjust to changes or capitalize on opportunities, such as when the coastal carriage business along several major Chinese ports was opened to foreign container vessels.
- The Current Logistics System Is, by Nature, Poorly Linked
Though massive strides have been made in the last decades that have brought Chinese manufacturers closer to US consumers through various channels, the segments are still more of a series of independent components. The key elements of the global shipping network connecting the manufacturer to the end user are deregulated. Trucking, ports, air transport, and ocean shipping are parts of a supply chain that are poorly connected.
- Manufacturing Centers are Concentrated in Specific Areas
Moreover, massive manufacturing areas concentrated on making a few products are in specific regions. For instance, when the Chinese state shut Wuhan down, the worldwide supply of personal protective equipment (PPE), which is vital in controlling the spread of the pandemic, was severely affected because Wuhan happens to be a significant center of export and production of medical supplies, particularly PPE, masks, gloves, gowns, and hand sanitizers.
Why GoFreight’s Freight Forwarding Software Is a Perfect Fit For Freight Forwarders Engaging in Trade with China
GoFreight provides one perfect centralized solution for freight forwarders worldwide. Because GoFreight is a software designed by freight forwarders who have worked on both shores, you can rest assured that we have thought about every feature that you need from a freight forwarding software to ensure that trade operations between businesses in the US and China run smoothly. GoFreight’s freight forwarding software has optimized functions for automating your operations: to enable any freight forwarding company to automate their operations, whether based offshore or in the US. Here are the top five reasons why it is the perfect fit:
GoFreight’s Freight Forwarding Software Has All the Features You Need:
A freight forwarding software does more than generate essential shipping documents, such as airway bills and bills of lading; it also automates your invoicing and billing and keeps track of your financials through its accounting module. Here are features that you can get from GoFreight’s freight logistics software from day 1:
- A user-friendly interface
- All your shipments tracked in real-time
- Managing all your documents in a single platform
- An accounting module designed especially for the freight forwarding business
- Smart-reporting through real-time manager insights
2. A Secure and Cloud-backed System for Accessibility and Security
GoFreight’s freight forwarding software uses a cloud-backed system running on a secure server, such as the AWS provided by Amazon, to ensure your operations work seamlessly and securely. This system can help all elements of your operations to work together wherever they are without downtimes and security threats.
3. Excellent Customer Support Conducted in Both Chinese and English
Our exceptional customer support sets us apart from most freight logistics software. Moreover, GoFreight’s customer support is manned by people familiar with both the software and the freight forwarding business as they are conducted on both shores. This way, every possible concern is covered. With changes being implemented on both shores, you will require constant updates to stay ahead of your competition and keep up with the ever-changing requirements and conditions in your business.
4. A Freight Forwarding Software That Is Always Updated
As soon as you deploy your freight forwarding software, you will always have the latest version in your hands. GoFreight constantly pursues system improvements to ensure that freight forwarders have the perfect solution to take on any challenges presented by the intricacies of trade with China. Moreover, GoFreight provides timely updates to enable your company to capitalize on opportunities to maximize profits.
Conclusion: GoFreight Helps Your Business Maximize Profitability When It Comes to Chinese Trade
GoFreight’s freight logistics software is loaded with features designed with your profitability in mind. As an all-in-one solution that streamlines your operations, it also has features that enable all elements of your organization to function seamlessly on both shores, regardless if you have Chinese or a multi-national staff. Because freight forwarders design GoFreight’s freight forwarding software for freight forwarders, our designers know exactly what you need. Moreover, the designers have experience working on both sides of the Pacific and are fully updated with the latest developments in US-China trade. To learn more about how GoFreight’s freight forwarding software can help your business when engaging in Chinese Trade, visit our China page. Book a free demo now to unlock your profit potential now!
Get the latest from GoFreight!
News, stories and ideas from GoFreight.