Sample

SAMPLE
CHINA DIGITAL FREIGHT

FORWARDING MARKET (2020-2025)
The study offers:
• A detailed understanding of the current market dynamics and growth opportunities
• An understanding of the impact of rapid technological developments on the market
• An overview of the competitive intelligence, with services and strategies of the major players
Domain: NEO Base Year: 2019 Forecast Period: 2020-2025
Industry Reports | Consulting | Intelligence Center

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1 SAMPLE – CHINA DIGITAL FREIGHT FORWARDING MARKET
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TABLE OF CONTENTS
1. INTRODUCTION 5. MARKET SEGMENTS OUTLOOK
1.1 Study Assumptions and Market Definition 5.1 By Mode of Transportation
1.2 Scope of the Study 5.1.1 Ocean
5.1.2 Air
2. RESEARCH METHODOLOGY
5.1.3 Road
3. EXECUTIVE SUMMARY
5.2 By Firm Type
4. MARKET INSIGHTS AND DYNAMICS
5.2.1 SMEs
4.1 Market Overview
5.2.2 Large Enterprises and Governments
4.2 Market Dynamics
5.3 By Destination
4.2.1 Drivers
5.3.1 International
4.2.2 Restraints 5.3.2 Domestic
4.2.3 Opportunities 6. COMPETITIVE LANDSCAPE
4.3 Technology Development in Online Freight 6.1 Introduction on Competitive Landscape

Forwarding and Digital Platforms 6.2 Company Profiles
4.4 Overview on E-commerce Logistics and Freight
Forwarding in China
4.5 Value Propositions of E-platforms Vs Competitors

TABLE OF CONTENTS
6.2.1 Flexport.com 7. ANALYST’S VIEW AND FUTURE OF THE MARKET
8. DISCLAIMER
6.2.2 Youtrans
6.2.3 Full Truck Alliance (Manbang group)
6.2.4 CS Global LTL Services Limited
6.2.5 Twill
6.2.6 Shanghai Huihang Jiexun Network

Technology Co. Ltd (YunQuna)
6.2.7 Agility Logistics Pvt. Ltd (Shipa Freight)
6.2.8 Freightos
6.2.9 China Division
6.2.10 DHL Group
6.2.11 Kuehne + Nagel International AG
6.2.12 NYSHEX
6.2.13 FreightBro
6.2.14 Cogoport
6.2.15 FreightHub

1. INTRODUCTION
1.1 Study Assumptions And Market Definition
1.2 Scope of the Study

1. INTRODUCTION
1.1 STUDY ASSUMPTIONS AND MARKET DEFINITION

STUDY ASSUMPTIONS MARKET DEFINITION
 The base currency considered was the US Dollar (USD). Conversion of other  The China digital freight forwarding market considers the geographic limits
currencies to USD was considered on the basis of the average exchange rate of China for domestic market.
for the respective review-period years. The exchange rate conversion for
 The scope of freight forwarding functions is freight forwarded by Road,
forecast period was determined according to the base year’s conversion
Ocean and Air, segmentation on the basis of type of firms (SMEs and Large
rates.
& Government), and segmentation by destination (Domestic and
 The base year was identified based on the availability of annual reports and
International). These segments are covered with the perspective of China
secondary information. The base year considered for this study is 2019.
freight forwarding.
 The review period considered for this study is from 2016 to 2019. The CAGR
considered is for the forecast period of 2020-2025.  The report covers insights on the digital freight forwarding market in China
 Market size estimations for the forecast years were in real terms. Inflation is and competitive landscape as per digital freight forwarding players.
not a part of the pricing and the average selling price (ASP) was kept
constant throughout the forecast period for each country.
 Distribution of primary interviews conducted was based on the regional
share of the market and the presence of key players in each region.
 As a result of data triangulation through multiple methodologies and
approaches, the weighted averages of resulting estimates were considered
to be the final values.

1. INTRODUCTION
1.2 SCOPE OF THE STUDY
BY MODE OF
TRANSPORTATION BY FIRM TYPE BY DESTINATION
Ocean SMEs International

Air Large Enterprises and Domestic
Governments
Road

2. RESEARCH METHODOLOGY
■ Mordor Intelligence (MI) advocates an appropriate mix of secondary and primary researches to meet Client objectives.
■ MI translates market insights (market dynamics, competition, varying consumer demands, and regulations) into actionable business insights.
■ Following phases are practiced at Mordor for efficient delivery of various syndicated and consulting assignments
STEP 1 STEP 2 STEP 3

SCOPING/ PROJECT INITIATION MARKET ANALYSIS PROJECT DELIVERY
Decipher client requirements/ market to be

Extensive desk research to identify most relevant secondary information available
studied
Tailor-made research approach for

Contact Mordor’s empaneled experts and identify industry experts across the market
customized reports
Effective use of Mordor’s knowledge

Conduct primaries and surveys to gather qualitative and quantitative insights
repository to gather relevant insights
Confirm the objectives of the assignment with

Triangulate and analyze data to finalize on actionable business insights.
client
Finalize report contents and establish Report delivery with high-quality market insights, competitive landscape, etc.,
a deliverable format as per the proposed contents.

RESEARCH PHASES EXPLAINED
2.1 SECONDARY RESEARCH 2.2 PRIMARY RESEARCH

A thorough synthesis of existing publications across the web to gather ◼ At Mordor, we continuously strive to pool in industry experts across the value chain,
meaningful insights into the current situation of the market, technology to gather first-hand insights into the market studied. In addition, knowledgeable
developments, and any other market related information. The sources include, industry veterans or retired experts, consultants, and freelancers are a call away to
collaborate with Mordor on any assignment that requires real-time industry insights.
but are not limited to:
◼ Moreover, we are capable of conducting market surveys to gather qualitative insights
◼ Scientific papers, journals, and publications
and opinions of a group of individuals related to the industry.
◼ Trade information to understand imports, exports, and average traded price ◼ Primary research is used, both, to validate the data points obtained from secondary
of the commodity, if available. research and to fill the data gaps after secondary research. Insights gathered during
◼ Industry and government websites for blogs, magazines, and other the primary research phase are useful to arrive at critical insights, both qualitative
publications and quantitative.
• Critical market dynamics (drivers, restraints, future, and regulations) and their
◼ Conference proceedings and association publications
impact
◼ Investor presentations, technical brochures, annual reports, press releases,
• Market distribution across various segments
transcripts of key personnel interviews, and other strategic publications by • Market entry for new companies and insights on competitive landscape
several competitors in the market.
MODES OF PRIMARY RESEARCH
◼ Product information, including technical specifications, approvals, patents, etc.
◼ Public sources/commodity reports (OECD, AfDB, etc.)
◼ Paid sources (Questel Orbit, Factiva, Bloomberg, Seeking Alpha, etc.) • Others
Telephonic Email Chat Virtual
Surveys
◼ Other sources include journals, articles, etc. (for prices and usage patterns) Interviews Interviews Interviews Council

RESEARCH PHASES EXPLAINED
2.3 DATA TRIANGULATION AND INSIGHT GENERATION

◼ Based on the factors identified, which are endogenous and exogenous in nature, and collected during the secondary and primary phases, our in-house subject-matter
experts are expected to transform quantitative data extraction and use them for the inferential purposes.
◼ The market size estimations were carried out through ‘bottom-up’ and ‘top-down’ approaches.
◼ Our top-down and bottom-up approaches are integrated into our ‘in-house model sheets’, which are used to generate the market estimates and growth rates
(depending upon the historical trends of the respective markets, along with the various factors, like drivers, restraints, and recent developments in the market) of the
product segment in the respective country.
IA process of combining findings from different sources, to increase the validity
and reliability of the results. Moreover, this process helps to strengthen
DATA conclusions about findings and to reduce the risk of false interpretations. The
TRIANGULATION attained insights from both secondary and primary researches are analyzed
and validated by the process of data triangulation, in order to arrive at closer
estimates.
An econometric model is a simplified representation of a real-world process.

ECONOMETRIC Here, the tools of econometric theory are used for the analysis and forecast of
MODELLING economic phenomenon, as well as to solve unknown quantities, such as
forecast demand, supply, investment, production, and consumption.
After the data is curated, analysts write the report. From data and forecast,
REPORT insights are drawn to visualize the entire ecosystem in a single report.
WRITING

The China digital freight forwarding market (henceforth, referred to as the

CHINA DIGITAL FREIGHT FORWARDING MARKET
01 market studied) was valued at USD xx billion in 2019, and is projected to be
Revenue in USD billion, China, 2015-2024 worth USD xx billion by 2025, registering a CAGR of xx% during the period of
XX% 2020-2025 (henceforth, referred to as the forecast period).
CAGR
Digital freight forwarding is a relatively nascent market – providing the low
base from which high growth is possible. Market penetration has increased to
02 five-fold (from 0.54% in 2015 to over 2.5% in 2018) in last 3 years and is
XX XX expected to increase to 5.78% by 2024. Penetration is defined by share of
digital freight forwarding revenue to total freight forwarding revenue. The
XX
market has almost grown at a near 80% CAGR over the 2015-2018 period.
XX Digitization is continuing to be one of the key drivers supporting growth of

XX the Chinese economy. High penetration of mobile commerce has led to large
03 disruption in B2B segment, with market participants being able capture a lion’s
XX share of the market – due to high smartphone penetration and acceptance
XX rate of Chinese large and medium businesses, to carry out businesses online.
XX
Success stories such as that of Houchebang and Yunquna speak volumes of
XX the success the digital freight forwarding model has achieved. For the
XX purpose of this report digital freight forwarding market has been defined as
04
the market for all revenue generated by freight forwarders through offering
of their services online, instead of traditional methods of phone, physical
meetings and email.
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
SOURCE: Mordor Intelligence Analysis, Industry Interactions

Penetration Rate of Digital CHINA FREIGHT FORWARDING MARKET – DIGITAL VVS> TRADITIONAL MARKET PENETRATION
Revenue in USD billion, China, 2015-2024
Freight Forwarding in China
Segment 2015 2016 2017 2018 2024
7.00%
6.00% 5.79% Digital Freight Forwarding xx 0.85 xx xx xx
5.00% Total Freight Forwarding xx xx xx xx xx
4.00%
Penetration Rate 0.54% xx% xx% xx% xx%
3.00% 2.58% SOURCE: Mordor Intelligence Analysis, based on government data, industry association data, literature research and interviews
1.77% Key drivers for growth of digital freight forwarding include ease of access, lack of transparency in pricing of
2.00%
logistics services (which is now becoming open information, as forwarders quote online in a competitive
1.09% market and engaging solutions provided by traditional freight forwarders and digital freight forwarders,
1.00% 0.54% which address supply chain predictability and visibility. Few key players have successfully established end to
end digital processes for forwarding. These players include new age disruptors, traditional forwarders
0.00% looking to innovate. A key advantage of the market digitalizing is that capacity is always projected to
customers via online platform and efficient matching can help reduce logistics costs in a scalable manner
2015 2016 2017 2018 2024
for the whole economy/eco-system, by assisting with load matching, supply and demand matching, price
transparency, etc. Another key advantage is the Chinese market is that digital businesses and solutions are
SOURCE: Mordor Intelligence Analysis possibility known to scale the fastest in the Chinese market.

4.1 Market Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Technology Development In Online Freight Forwarding and Digital Platforms
4.4 Overview on E-commerce Logistics and Freight Forwarding in China
4.5 Value Prepositions Of E-platforms Vs Competitors

4.1 MARKET OVERVIEW

■ The digital freight forwarding market in China is in the nascency and the major traditional freight
forwarding companies, like Kuehne Nagel, DHL, Sinotrans, and SF Express, are gradually digitizing their
services to provide online freight booking, live tracking of shipments, and documentation, among other
services. Digital freight forwarding companies have lower penetration in the Chinese logistics market. On
the other hand, digital freight listing companies have seen a better penetration due to the ease of the
service being providing and larger collaboration with major players. One of the major reasons for the
digital freight forwarders to have a lower penetration rate in China is that the small and medium-sized
companies have fewer resources in terms of capital and capacity to approach the major players for
freight forwarding.
■ The startups, like Flexport and Manbang, are seen to experience rapid growth in the digital freight
forwarding market in China with support from traditional freight forwarders and large funding's.
■ It has been observed that the digital freight forwarders are mainly operational in the road and ocean
freight forwarding in China as these two segments are expected to see higher growth during the
forecast period. Road freight forwarding has witnessed approximately 80% of the drivers being listed
with a major digital freight forwarder in China.
■ The emerging startups in logistics have shifted towards online freight listing in China, where these
startups list services provided by other logistics companies for comparison and quoting.
14 SAMPLE –REPORT
CHINA DIGITAL
– CHINA FREIGHT
DIGITAL FORWARDING MARKET MARKET
FREIGHT FORWARDING
4.1 MARKET OVERVIEW

DIGITAL FREIGHT FORWARDING
■ As the name implies, digital freight forwarders (DFF) provide users with logistics services through digital
platforms, with services that are richer than those provided by online market and internet platform
providers. The core value proposition of DFF is to provide users with a seamless experience: they can not
only transport goods but also integrate all information on a single platform through a single user
interface. In addition, DFF can provide users with real-time quotes, simple standardized document
management, streamlined and efficient communication processes, and real-time data that can easily
track shipments online, replacing traditional manual operations and tedious paper documents.
■ In the digital freight forwarding market, two different models can be seen: the first is to operate jointly
with external partners, and the second is that the company has strong internal operating capabilities:
■ Digital freight forwarders operating in conjunction with external partners: Such companies typically sign
contracts with local agents and freight forwarders who have operational knowledge and physical assets.
This type of DFF does not have the ability to operate internally and does not need to worry about the
complexity of the operation and its associated costs, but it also loses direct control over the handling of
special situations and service stability. In addition, the standardization and simplification of processes
have become more difficult; this is the key to whether the business model can achieve large-scale
development. For these reasons, most of these companies focus on the simpler freight business rather
than transactional customers, at least for now.
15 SAMPLE –REPORT
CHINA DIGITAL
– CHINA FREIGHT
FREIGHT FORWARDING
4.1 MARKET OVERVIEW

■ Such participants are often founded by traditional

companies that implement digital strategies. Twill is
such an example: the company was founded by
Damco, a freight forwarding business unit of Maersk,
and has grown rapidly since its establishment in
2017. Sites are set up in the regions. Twill's brand
ownership relationship has also changed, from
Damco to Maersk, which fully reflects the important
role this startup plays in Maersk's goal of becoming a
global container logistics integrated service provider.

4.1 MARKET OVERVIEW

■ Flexport is one of the typical representatives of such enterprises. The company has built an efficient and
easy-to-use platform for users, which can directly contact carriers to make reservations and can also
contract with local freight agents to provide overland delivery services. Flexport claims that its online
platform not only eliminates the transaction costs of communicating by email and phone, but also
allows customers to better understand and control various conditions in their supply chain. The
company recently began building internal operations in the United States and Europe. In addition, it has
established a strategic partnership with SF Express, indicating that it may be interested in expanding its
business into the Asian market.
■ Digital freight forwarders with internal operating capabilities: These companies tend to provide more
comprehensive services than their less intensive counterparts. They have wider geographical coverage,
provide more diversified modes of transportation, and localized customer service. They can leverage
existing business networks and customer relationships to more quickly initiate and expand various
business activities. However, like DFFs that cooperate with foreign countries to conduct business, they
also face the challenge of promoting automated operations in the background: this is a difficult and
tedious task that requires significant changes to existing processes.
17 SAMPLE –REPORT
CHINA DIGITAL
– CHINA FREIGHT
FREIGHT FORWARDING
4.1 MARKET OVERVIEW

■ The digital freight forwarding market in China is mainly focused toward
ocean and road freight segments. This is due to the significant number of
players operating in these segments. In September 2019, Sinotrans, in China
started the new and first digital air freight forwarding service. The initiative
taken by Sinotrans will allow to pull global contract rates, get dynamic pricing
or request ad-hoc, and receive an instant booking confirmation from over 10
airlines integrated with Freightos.
■ The volume of freight handled by small and medium-sized freight forwarders

in China was approximately 9 billion metric ton in 2018. As the number of
services provided by small and medium-sized players increases, it is expected
that the volume of freight will rise further.
■ It is expected that in the immediate future the digital air freight forwarding
segment will see the presence of international players.
■ Technology adoption in China is at the forefront and this allows the nascent
digital freight forwarding market to grow faster. Blockchain, automation, Big
Data, and IoT are among the most deployed technologies for data
aggregation and listing, freight quotes, and instantaneous billing, among
others.
18 SAMPLE
REPORT –– CHINA
CHINA DIGITAL
DIGITAL FREIGHT
FREIGHT FORWARDING
FORWARDING MARKET
MARKET
4.2 MARKET DYNAMICS
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities

4.2.1 DRIVERS
INCREASING MARKET ACTIVITY IN DIGITAL FREIGHT FORWARDING SEGMENT
◼ The number of players wanting to enter China or startups in China is increasing. For instance, Manbang, is an alliance between Houchebang and Yunmanman to cater to
the digital freight forwarding market for trucking.
◼ China’s largest freight forwarder, Sinotrans, will offer online quoting and booking for air freight via WebCargo, the logistics purchasing platform from Freightos.
Sinotrans’ air freight subsidiary, Sinoair, will allow customers to pull global contract rates, get dynamic pricing, and receive instant booking confirmation from more than
10 airlines integrated with WebCargo.
◼ Freight forwarder Flexport is partnering with Chinese logistics specialist, SF Express, to offer a one-stop-shop for freight services, including full container load (FCL)
ocean shipping and air cargo. Flexport and SF Express will connect data and platforms to provide “smarter and more advanced logistics services” to address the specific
needs of Chinese companies.
◼ As the market activities increase, the competitiveness in the market is also on a rise. Increasing participation by domestic and international players in the Chinese market
helps drive the market growth.

4.3 TECHNOLOGY DEVELOPMENT

IN ONLINE FREIGHT FORWARDING
AND DIGITAL PLATFORMS
■ The wave of digital innovation may have a huge impact on the aviation and
maritime freight forwarding industry. Startups, suppliers, and even customers
are applying digital technologies to develop innovative business models
designed to dramatically improve the customer experience and eliminate the
chronic illness of inefficient operations. These digital business models may
disrupt the long-standing dominance of traditional freight forwarders in the
industry.
■ Traditional freight forwarders want to survive, and they must keep pace with
the development of digital. It is estimated that manual process automation can
now reduce specific back-office and operating costs by as much as 40%;
digitally upgrading key links in the sales process can further reduce related
direct costs. In addition, as new business models become increasingly popular,
digital capabilities may open up “doors of opportunity” for companies to help
them stand out in the market.
21 SAMPLE
REPORT –– CHINA
CHINA DIGITAL
DIGITAL FREIGHT
FREIGHT FORWARDING
FORWARDING MARKET
MARKET
4.3 TECHNOLOGY DEVELOPMENT

IN ONLINE FREIGHT FORWARDING
AND DIGITAL PLATFORMS
■ The two big pushers behind the digital wave
■ 1. Poor customer experience
■ The traditional offline quote and booking process is tedious and cumbersome,
and often requires clients to come and go many times before they can
negotiate the final price. A recent study carried out by freight services
company, Freightos, showed that shippers can wait up to 100 hours when
inquiring freight forwarders. Filling and checking shipping documents are an
extremely tedious and time-consuming process, and it is difficult to track
freight orders in real time; once an unexpected situation occurs midway,
customers simply do not have the opportunity to make the necessary
decisions to ensure that the goods reach their destination as planned.
22 SAMPLE
REPORT –– CHINA
CHINA DIGITAL
DIGITAL FREIGHT
FREIGHT FORWARDING
FORWARDING MARKET
MARKET
4.3 TECHNOLOGY
DEVELOPMENT IN
ONLINE FREIGHT
FORWARDING AND
DIGITAL PLATFORMS
■ 2. Manual operation
■ The aviation and maritime freight forwarding industry

has far more manual processes than other industries,
which is a common phenomenon in the industry. Some
companies still rely on e-mail, personal transfers and
even faxes to transfer shipping documents. The entire
process is time-consuming and error-prone. It also
increases operating costs and squeezes corporate
profits. The research of the company, Freightos, found
that out of the top 20 freight forwarders, only five
automatically send confirmation emails, and even
fewer provide instant quotations. For companies with a
large number of trading customers, the cost of service
is naturally higher.

4.3 TECHNOLOGY DEVELOPMENT IN ONLINE

FREIGHT FORWARDING AND DIGITAL
PLATFORMS
THE INTERNET-OF-THINGS (IOT)
■ Although this technology is still fragmented, it is already on course to shake up the freight shipping
industry. The type of technology IoT uses is comprised of a database, a reader, a chip and a GPS cloud-
based system. These elements speak to each other, creating a detailed and valuable outlay of clients’
operations. IoT can be described as “a way of getting inanimate objects, like parcels and containers, to
send useful information about themselves automatically and autonomously directly to the internet.”
■ This new technology is referred to as radio frequency identification, and it enables the freight industry to
effectively track its shipments and the conditions of these shipments. The confirmation receipts and
barcodes no longer require scanning, and the technology enables shipments to be received
automatically. The advances in IoT have made it not only easier, but more efficient for a company to
check on goods or a shipment. This can be accomplished 24/7.
24 SAMPLE –REPORT
CHINA DIGITAL
– CHINA FREIGHT
FREIGHT FORWARDING

PLATFORMS
ADVANCED MACHINE LEARNING
■ Advanced machine learning is one of the latest technologies providing the freight industry with a
competitive edge. This technology analyzes data, and it enables business decisions to be made using
patterns. The computers use dashboards and pre-determined reports to conduct sophisticated analysis.
This provides market insight in the freight industry that allows companies to pivot to more efficient
operations.
■ Human intervention is not necessary to analyze data due to the algorithms of machine learning.
Machine learning is used in conjunction with supply chain management to turn passive data into on
targeted business intelligence. This improves incoming orders, the accuracy of forecasting, general
performance, and predictability.
■ For example, by analyzing data on thousands of trucking runs, machine learning can recommend which
routes are more productive, what conditions create problems, and it can also pinpoint other
inefficiencies. In maritime, machine learning can help companies choose routes, ports, and make other
choices to increase its bottom line.
25 SAMPLE –REPORT
CHINA DIGITAL
– CHINA FREIGHT
FREIGHT FORWARDING

PLATFORMS
CLOUD-BASED SOLUTIONS
■ The freight industry may see major advancements, as the capacity of the private fleets becomes more
readily available. Freight companies are likely to be able to immediately reposition any empty containers
without expensive IT infrastructure investments. This may be possible by deploying pay-per-use services
on the cloud. The combination of mobile applications and services based on the cloud may enable
freight companies to cater to both large and small businesses.
CONNECTED APPLICATIONS
■ The freight industry requires a reliable and efficient means of transmitting data, and this is crucial for
logistics. Technological advances may enable numerous applications to communicate with each other in
intra- and inter-business scenarios and B2C and B2B. Although EDI has been used as communication for
a long period of time in the freight industry, data transmission in real-time has been compromised due
to the strictness of the standards and formats. JSON and RESTful Web services are capable of replacing
EDI, and they are preferable for transmitting data. Mobile apps are capable of capturing data on-roads
and on the floor. These apps may communicate with the existing systems and digitally transform the
freight industry.
26 SAMPLE –REPORT
CHINA DIGITAL
– CHINA FREIGHT
FREIGHT FORWARDING
4.3 TECHNOLOGY
DEVELOPMENT IN
ONLINE FREIGHT
FORWARDING AND
DIGITAL PLATFORMS
SECURITY
■ Warehouse and logistics management solutions are

starting to use internet and cloud computing to
transmit of data. This system and the corresponding
software are able to prevent cyber-attacks much
more effectively. Security in the freight industry is
changing, and individual components are being
constantly monitored for vulnerabilities.
■ Cyber threats can be effectively recognized,

monitored, and rectified to stop any possibility of a
cyber threat. Regular testing and security audits may
become a permanent part of the freight industry.

5. MARKET SEGMENTATION
5.1 By Mode of Transportation
5.1.1 Ocean
5.1.2 Air
5.1.3 Road
5.2 By Firm Type
5.2.1 SMEs
5.2.2 Large Enterprises and Government
5.3 By Destination
5.3.1 International
5.3.2 Domestic
28 REPORT – CHINA DIGITAL FREIGHT FORWARDING MARKET

5.1 BY MODE OF TRANSPORTATION
FREIGHT FORWARDING MARKET FREIGHT FORWARDING MARKET – BY MODE OF TRANSPORTATION

Segmentation, by Mode of Transportation (%),
Revenue in USD billion, China, 2016-2025
China, 2019
Segment 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 CAGR
Ocean xx xx xx xx xx xx xx xx xx xx xx
Air xx xx xx xx xx xx xx xx xx xx xx
SAMPLE FIGURE
Road xx xx xx xx xx xx xx xx xx xx xx
Ocean Air Road

5.1.1 OCEAN
■ The ocean segment of China freight forwarding market studied was valued
FREIGHT FORWARDING MARKET
Revenue in USD billion, Ocean, China, 2016-2025 at USD xx billion in 2019 and is expected to reach USD xx billion by 2025,
registering a growth rate of xx% during the forecast period.
60
xx ■ Water transport is the main mode of transport for China's foreign trade.
xx
50 Container shipping has achieved a high degree of standardization, and
xx
xx shippers and shipping agents mostly trade on CY-CY terms. Standard
xx transaction terms reduce the difficulty of operations for the ocean freight
40 xx
xx forwarders, resulting in competition among ocean freight forwarders based
xx
xx
30 xx on factors, such as price and customer relationships.
■ The overall Chinese logistics costs as a percentage of GDP are still large
20
when compared to that of the United States. The customs clearance process
is still largely based on various paper documents and highly dependent on
10
third-party suppliers, such as freight companies and forwarders. These all
have a negative impact on the efficiency of the maritime industry. This also
0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 shows that there is room for digital technology providers in the market.

5.1.1 OCEAN
■ Ningbo Zhoushan port, one of China's busiest ports, saw cargo throughput rise of 5.5% year-on-year to 557.96 million metric ton in the first half of 2019. Meanwhile,
the container throughput at the port in eastern China's Zhejiang Province reached 13.91 million standard containers in the January-June period of 2019. The container
throughput ranked second in the country, only after the Shanghai port.
■ As per the global major shipping line Maersk, the escalating trade war between the United States and China could reduce the growth of global container shipping by
1% in 2019. The China Container Freight Index (CCFI) has a wide range, covering the spot and forward freight rates of 10 ports in the country, which has also fallen since
August 2018, a drop of 7%.
■ According to the Ministry of Transport, China experienced a growth of 4.9% in the box throughput of its top 45 coastal ports in the first quarter of 2019, compared to
the same period in 2018. China’s coastal box throughput in the first quarter of 2019 stood at 53.79 million twenty-foot equivalent units (TEU). China’s top 45 coastal
ports handled 19.73 million TEU in January, 16.63 million in February, and 21.53 million in March.
■ Throughput at China’s ports is heavily skewed toward a few main facilities. The top five ports by volume handled 33.38 million boxes, accounting for 60.3% of the total
volume. The top ten ports by volume account for 44.55 million TEU, which is about 80.4% of the total. The remaining 35 ports account for 10.84 million TEU, which is
19.6% of the total.

5.1.1 OCEAN
■ The extent of digitization in the maritime industry is anticipated to grow significantly. The growth of the market can be attributed to the increasing emphasis and
dependence of the shipping industry on information technology and digitalization. By combining artificial intelligence technology, blockchain, the Internet of Things,
and robotics technology with shipping models, the digital transformation of maritime freight has greatly improved the efficiency of maritime companies. These
technologies help shipping companies make long-term traffic prediction and intelligent coordination models.
■ Within the freight forwarding ecosystem, players from all market categories have already exploited the industry's digital potential. Of these, the digital leaders among
the shippers are keenly aware of the digitalization potential and have already started to integrate backward. It is observed that the freight forwarders' suppliers, the
carriers, have understood the digital game and actively integrate forward.
■ Freight forwarders are an intermediary that impedes direct access to the customer. Nowadays, these interfaces are getting easier and
easier to create, which may increase margins for carriers. One of the biggest carriers in ocean freight, Maersk, partnered with Alibaba's
One Touch platform to allow shippers to directly book vessel capacity online and heavily invests in TWILL and DAMCO. It was part of
the Maersk’s strategy to provide digitized services for customers. Shippers traditionally go through freight forwarders to book space
for goods on container vessels, but lines, such as Maersk, are allowing cargo owners to book directly via the internet.
■ A new wave of electronic freight forwarders is entering the logistics field who are trying to bridge the gap by using data-driven information and a booking platform that
provides transparent prices and markets. These platforms provide more competitive services. The increasing use of digital tools and platforms is expected to shake the
entire industry. The less efficient traditional industry players will be replaced by more efficient digital players.

5.1.1 OCEAN
CONTAINER HANDLING AT PORTS

Value in million TEU, China, 2008-18
250.
xx
xx
xx
200. xx
xx
xx
xx
xx
150.
131.45
xx Inland ports
xx
Sea ports
100.
50.
xx xx xx
xx 19.5 xx xx xx
xx xx xx
0.
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
SOURCE: MARITME AUTHORITY AND GOVERNMENT STATISTICS

5.1.1 OCEAN
AVERAGE WATERWAY FREIGHT TRANSPORT DISTANCE

Value in km, China, 2007-2017
2,500
xx
2,000
xx xx xx xx
xx
xx xx xx xx
1,500 xx
1,000
500
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

5.1.1 OCEAN
QUAY LENGTH OF MAIN COASTAL PORTS

Value in meter, China, 2017
xx
xx
54,508
xx
xx
xx xx xx xx xx
xx xx xx xx xx xx xx
xx xx
xx

5.3 BY DESTINATION
FREIGHT FORWARDING MARKET FREIGHT FORWARDING MARKET

Segmentation by Destination (%), China, 2019 Revenue in USD billion, by Destination, China, 2016-2025
Segment 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 CAGR
International xx xx xx xx xx xx xx xx xx xx xx
SAMPLE FIGURE Domestic xx xx xx xx xx xx xx xx xx xx xx
International Domestic

5.3.1 INTERNATIONAL
■ The international segment of China freight forwarding market studied was

FREIGHT FORWARDING MARKET
Revenue in USD billion, International, China, 2016-2025 valued at USD xx billion in 2019, and it is expected to reach USD xx billion
by 2025, registering a growth rate of xx% during the forecast period.
120
xx
xx ■ Generally, in China, the scope of international freight forwarding services
100 xx includes foreign pickup, foreign declaration, booking, packaging, domestic
xx customs clearance, domestic storage, domestic delivery, etc.
xx
80 xx
■ The China's international freight forwarding industry, as a service trade,
xx
xx achieved remarkable results and made positive contributions, by relying on
60 xx
xx the rapid development of foreign trade. At present, a large number of
enterprises have stood out in the fierce market competition.
40
■ At present, 80% of the China's import and export trade cargo

20
transportation and transit business and 90% of international air cargo
transportation business are done through international freight forwarding
0
companies.
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

5.3.1 INTERNATIONAL
■ According to industry sources, before the reform and market opened up, China's international freight forwarding industry was heavily regulated and not sufficiently
developed. After the reform and opening up, the Chinese government gradually liberalized the administration of international freight forwarding, and the international
freight forwarding industry ushered in rapid growth.
■ After entering the 1990s, various foreign-funded enterprises, transportation departments, and production enterprises entered the international freight forwarding
industry. In addition to more than 10,000 large-scale freight forwarding companies, which have been approved by the Ministry of Commerce, there are many small and
medium-sized enterprises and freight forwarding companies that are linked to other companies. The freight forwarding industry has developed rapidly. Among them,
state-owned international freight forwarders accounted for nearly 60%, foreign-invested international freight forwarders accounted for nearly 25%, and the rest were
private freight forwarders.
■ In the coming years, the China's gross domestic product and total foreign trade are expected to increase significantly, and China's freight forwarding and logistics may
also grow in tandem. China's huge domestic market and China's unique comparative cost advantage determine that China may develop into a world processing plant,
so that China may become a world logistics distribution center.
■ The industry shows a development trend where industry associations, like the China International Freight Forwarding Association, actively play a guiding role, providing
good support for the development of the industry. China’s strong import and export trade sustained the growth of its freight forwarding industry. In particular,
enhancement of services by freight forwarders, as a result of expanding trade between China and foreign countries; adjustment of global supply chain network in
respond to foreign customers’ demand enabled China to become one of the most important purchasing and manufacturer centers in the world.

6. COMPETITIVE LANDSCAPE

6.2 COMPANY PROFILES

6.2.1 Flexport.com
6.2.2 Youtrans
6.2.3 Full Truck Alliance (Manbang Group)
6.2.4 CS Global LTL Services Limited
6.2.5 Twill – a Maersk Innovation
6.2.6 YunQuna
6.2.7 Shipa Freight
6.2.8 Freightos
6.2.9 China Division
6.2.10 DHL
6.2.11 Kuehne Nagel
6.2.12 NYSHEX
6.2.13 FreightBro
6.2.14 Cogoport
6.2.15 FreightHub

6.2.1 FLEXPORT.COM
◼ Flexport is the first international freight forwarder and customs brokerage built around an
online dashboard.
◼ The company provides freight forwarding and customs brokerage services. It offers air and
ocean freight, trucking, warehouse and fulfillment, customs brokerage, and cargo insurance Founded in 2013
services. It serves customers all around the world.

◼ It raised USD 304 million as of 2017, including USD 110 million in its latest Series C round. San Francisco, United States
◼ It was started by Ryan Petersen, a UC Berkeley and Columbia Business School graduate, in
www.flexport.com
March 2013. Currently, it ships to 200 countries for more than 10,000 customers. It moves
1,00,000 shipping containers annually.
1500
◼ Flexport and the operating system for global trade bring together technology, infrastructure,
and expertise to deliver real-time visibility and control, and a far better freight forwarding
experience.
Revenue USD
10,000
471 million More than
in 2018 Customers
SOURCE: Mordor Intelligence Secondary Research on Competitive Intelligence using Annual Reports, Hoovers, Crunchbase and other tools

6.2.1 FLEXPORT.COM
▪ It brings together advanced technology and data analytics, logistics infrastructure, and supply chain expertise to deliver a dramatically better experience. Flexport
and the operating system for global trade give businesses what they have never had before with their freight forwarders: deep visibility and control from origin to
destination, fast and reliable transit times, and low and predictable supply chain costs.
▪ It was the first to market a purpose-built cloud software and data analytics platform in 2013. Today, it serves more than 10,000 clients in over 100 countries, offering
a full range of services, including ocean, air, truck, and rail freight, drayage and cartage, warehousing, customs and compliance, financing, and insurance, all
informed and powered by Flexport’s software platform. It has 747 aircraft operating through its 11 offices around the world.
▪ It has offices in San Francisco (HQ), New York City, Los Angeles, Chicago, Atlanta, Seattle, Amsterdam, Hamburg, Hong Kong, and Shenzhen (and expanding rapidly).
It has warehouses in Los Angeles, Shenzhen, Hong Kong, and Shanghai.
▪ It provides data that helps customers analyze costs, container utilization and emissions, and keep track of their supply chain. It includes support for smaller LCL (less
than full container) shipments that bigger players often treat as low priority.
▪ It offers its services in two categories: Logistics and Supply Chain Services:
▪ In Logistics, it offers Ocean Shipping, FCK Shipping, LCL Shipping, Ocean Match, Track and Trace, Air Freight and Ground Transportation.
▪ In the Supply Chain, it offers Custom Brokerage, Trade Finance, Carbon Offset, Insurance and APIs.

6.2.1 FLEXPORT.COM
M Merger and Acquisition I Product Innovation E Expansion P Partnership
Flexport, the modern freight forwarder, announced

the acquisition of Crux Systems, the most advanced
technology solution for tracking ocean containers.
Flexport reached out to rival forwarders to gauge The acquisition is expected to accelerate the
their interest in helping it deal with the increased automation of Flexport's shipment tracking
demand for customs services, as shippers grapple capabilities, upgrading the track and trace data that
with the uncertainty around tariffs on US imports. FEB 2019 powers its freight-forwarding services.
P M
OCT 2019 Flexport, the six-year old company, raised a USD 1 OCT 2019
billion funding led by SoftBank Vision Fund.

6.2.3 FULL TRUCK ALLIANCE (MANBANG GROUP)
▪ Truck Alliance is the leading online road logistics

platform in China with the first nationwide freight
information network.
▪ The company is committed to construct China’s road

logistics infrastructure, providing the freight-truck
matching platform for truckers and shippers, as well as
integrated services to truck users.
Founded in 2017
▪ In November 2017, the two giants of freight logistics,
Guiyang, China Man Man Man and Truck Gang, announced a strategic
merger and established Manbang Group. It was also the
http://www.huochebang.cn/ most significant merger in the logistics industry that
year.
1500
▪ The Manbang Group has officially disclosed that 5.2
million of the 7 million Chinese mainline trucks are
members of the Manbang Group, and 1.25 million of 1.5
million of the Chinese logistics companies are Manbang’s
members.

▪ In addition, according to statistics, as of the end of August 2019, the Manbang platform certified 7 million driver users, 2.25 million owner users, and a total of more
than 9 million users. The cargo network established by Manbang Group has covered 339 cities across the country with 110,000 lines, the annual turnover of the
platform exceeds CNY 800 billion.
▪ Yunmanman was established in 2013, and is affiliated to Jiangsu Manyun Software Technology Co. Ltd. It is a domestic freight dispatching platform based on cloud
computing, Big Data, mobile Internet, and AI (artificial intelligence) technology. Currently, the platform has more than 6.5 million registered heavy truck drivers and 1.6
million cargo owners. It has become the world's outstanding vehicle capacity dispatching platform and smart logistics information platform.
▪ Full Truck Alliance Group has almost finalized an investment of USD 1 billion in the company, which is expected to initiate its foray in autonomous driving technology.
The new funds are expected to come from the existing investors, like Softbank Group and Tencent Holdings. This factor is is expected to increase its valuation by 40%,
to raech USD 9 billion. The company had initially targeted to raise USD 1 billion at a valuation of USD 10 billion.
▪ The company now hopes to venture into the areas of autonomous driving technology. It has invested in PlusAI, a driverless truck startup based in Silicon Valley. Plus.AI
is backed by Sequoia Capital and is valued at nearly USD 1 billion. Long-haul trucking is one of the avenues where autonomous driving can be implemented, due to its
long-hours of cruising in relatively simple environments, such as highways.
▪ FTA is China's largest digital logistics platform, and has already received investments from Tencent, SoftBank, Lightspeed Venture, Tiger, and Capital G. Your App has
about seven million registered users (covering 339 cities in China) and about 2.5 million shippers offering cargo.

M Merger and Acquisition I Product Innovation E Expansion P Partnership
Manbang Group, also known as Full Truck Alliance,

announced its plans to launch the first fleet of Level
four autonomous trucks worldwide, cooperated by
PlusAI, a Silicon Valley driverless truck startup valued PlusAI announced a joint venture with FAW Jiefang,
at USD 1 billion. PlusAI aims to create a fleet with China’s largest truck manufacturer, to develop self-
one hundred-plus driverless cargo vehicles driving big rigs for the world’s most populous
cooperated with Manbang. The fully operational country. The new venture, which builds on a two-year
driverless truck fleet needs more than just the proper relationship between the two companies, is
autonomous driving technology. It also needs launching its first product, the FAW J7 Level Two
appropriate scenarios in smart logistics and fleets truck, with plans to bring a full Level Four heavy-duty
safety management operation experience. NOV 2019 truck to market in the next three to five years.
P
MAY 2019 The Full Truck Alliance (FTA) announced investments JUN 2019
in Truckpad , a startup established in 2013. It has
more platform known in the country for
management and hiring freelance drivers' truck. The
FTA did not disclose the details of the deal.

FOR MORE INFORMATION,
PLEASE CONTACT
5th Floor, Brigade Towers, Financial District, +1 617-765-2493
Gachibowli, Hyderabad – 500032, India
info@mordorintelligence.com www.mordorintelligence.com
Industry Reports | Consulting | Intelligence Centre
+1 617 765 2493 | info@mordorintelligence.com | www.mordorintelligence.com


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CHINA DIGITAL FREIGHT

Domain: NEO Base Year: 2019 Forecast Period: 2020-2025

Industry Reports | Consulting | Intelligence Center

2 SAMPLE – CHINA DIGITAL FREIGHT FORWARDING MARKET

1.1 Study Assumptions and Market Definition 5.1 By Mode of Transportation

1.2 Scope of the Study 5.1.1 Ocean

4.3 Technology Development in Online Freight 6.1 Introduction on Competitive Landscape

4.5 Value Propositions of E-platforms Vs Competitors

3 SAMPLE – CHINA DIGITAL FREIGHT FORWARDING MARKET

6.2.3 Full Truck Alliance (Manbang group)

6.2.4 CS Global LTL Services Limited

6.2.6 Shanghai Huihang Jiexun Network

6.2.7 Agility Logistics Pvt. Ltd (Shipa Freight)

6.2.9 China Division

6.2.10 DHL Group

6.2.11 Kuehne + Nagel International AG

4 SAMPLE – CHINA DIGITAL FREIGHT FORWARDING MARKET

1.2 Scope of the Study

5 SAMPLE – CHINA DIGITAL FREIGHT FORWARDING MARKET

1.1 STUDY ASSUMPTIONS AND MARKET DEFINITION

6 SAMPLE – CHINA DIGITAL FREIGHT FORWARDING MARKET

1.2 SCOPE OF THE STUDY

Ocean SMEs International

7 SAMPLE – CHINA DIGITAL FREIGHT FORWARDING MARKET

STEP 1 STEP 2 STEP 3

Decipher client requirements/ market to be

Tailor-made research approach for

Effective use of Mordor’s knowledge

Confirm the objectives of the assignment with

8 SAMPLE – CHINA DIGITAL FREIGHT FORWARDING MARKET

2.1 SECONDARY RESEARCH 2.2 PRIMARY RESEARCH

9 SAMPLE – CHINA DIGITAL FREIGHT FORWARDING MARKET

2.3 DATA TRIANGULATION AND INSIGHT GENERATION

An econometric model is a simplified representation of a real-world process.

10 SAMPLE – CHINA DIGITAL FREIGHT FORWARDING MARKET

The China digital freight forwarding market (henceforth, referred to as the

XX Digitization is continuing to be one of the key drivers supporting growth of

SOURCE: Mordor Intelligence Analysis, Industry Interactions

11 SAMPLE – CHINA DIGITAL FREIGHT FORWARDING MARKET

6.00% 5.79% Digital Freight Forwarding xx 0.85 xx xx xx

5.00% Total Freight Forwarding xx xx xx xx xx

12 SAMPLE – CHINA DIGITAL FREIGHT FORWARDING MARKET

4.2 Market Dynamics

4.3 Technology Development In Online Freight Forwarding and Digital Platforms

4.4 Overview on E-commerce Logistics and Freight Forwarding in China

4.5 Value Prepositions Of E-platforms Vs Competitors

13 SAMPLE – CHINA DIGITAL FREIGHT FORWARDING MARKET

4.1 MARKET OVERVIEW

4.1 MARKET OVERVIEW

4.1 MARKET OVERVIEW

■ Such participants are often founded by traditional

16 SAMPLE – CHINA DIGITAL FREIGHT FORWARDING MARKET

4.1 MARKET OVERVIEW

4.1 MARKET OVERVIEW

■ The volume of freight handled by small and medium-sized freight forwarders

19 SAMPLE – CHINA DIGITAL FREIGHT FORWARDING MARKET

20 SAMPLE – CHINA DIGITAL FREIGHT FORWARDING MARKET

4.3 TECHNOLOGY DEVELOPMENT

4.3 TECHNOLOGY DEVELOPMENT

■ 1. Poor customer experience

■ The aviation and maritime freight forwarding industry

23 SAMPLE – CHINA DIGITAL FREIGHT FORWARDING MARKET