DSDVY

(Yicai) Nov. 11 -- More and more Chinese companies are expanding overseas. This is creating new opportunities for international logistics providers, which no longer offer simple cargo transportation services but also cross-border raw materials, parts, and finished goods allocation and supply chain management.

Global logistics and shipping companies, such as DHL Group, DSV, China COSCO Shipping, and CMA CGM Group, showcased their global transportation networks, overseas port operations, and digital logistics assets to Chinese companies at the Ninth China International Import Expo, which ended in Shanghai yesterday.

As the number of Chinese firms establishing plants and sales networks in Southeast Asia, the Middle East, Europe, and Latin America is increasing, their demand for logistics service providers has expanded beyond transportation to integrated services, such as warehousing management, fulfillment and delivery, customs declaration and clearance, and supply chain visibility, a staff member at DSV’s CIIE booth told Yicai.

“Chinese companies have moved from exporting products and pursuing capacity cooperation to a systematic overseas expansion of industrial and supply chains,” he added.

Even though foreign multinational companies in China are still DSV’s main clients in the country, Chinese firms expanding overseas have also become an important growth driver for the company’s local business, the staffer pointed out.

DSV’s clients in China operate in high-tech manufacturing sectors, such as semiconductors, batteries, photovoltaics, and energy storage, as well as the automotive, industrial manufacturing, cross-border e-commerce, luxury goods, home appliances, consumer electronics, aerospace, healthcare, and pharmaceuticals industries.

These industries share several common characteristics. Their products have relatively high value, their production processes are complex, they have broad overseas market footprints, and they place higher demands on logistics in terms of timeliness, security, and stability, the staff member explained.

To better serve Chinese companies, DSV set up a dedicated team three years ago to support them in going overseas, and it has deployed personnel familiar with Chinese corporate culture and business rules in key overseas markets targeted by these firms, the staffer said.

Editors: Tang Shihua, Futura Costaglione