One of the Scams by Freight Forwarder China: The Low-Cost Cargo Handling Secret

Mr. Wang from Qingdao Machinery Factory had a batch of woodworking machinery ordered by a Brazilian client. Since the timing was flexible, he used a low-cost freight forwarder China. Initially, he felt great about saving a few thousand dollars on shipping costs, but ultimately, he lost tens of thousands!

What attracted Mr. Wang to this freight forwarder China was indeed the low price. He had doubts at first and communicated multiple times with the freight forwarder, who assured him that there was no problem. They claimed that they could get discounted rates from the shipping company due to the large volume of cargo they handled, although the shipping time was longer. Given his flexible schedule, Mr. Wang felt their explanation made sense and decided to go with this new freight forwarder China.

The process then proceeded step by step, but after the payment was made, things started to feel off. Eventually, he couldn't contact them at all. The final blow was discovering that the company had declared bankruptcy. Mr. Wang panicked!

This is a typical secret of low-cost cargo handling. These are usually small freight forwarders operating from urban villages, whose primary aim is to scam. They attract cargo by offering prices below cost. Because of these low prices, they manage to secure a large amount of cargo, especially from out-of-town companies unfamiliar with Shenzhen freight forwarder China, like those from Qingdao or Xiamen, who only look at the price. When these companies want to ship from Shenzhen, they find that a freight forwarder China offers incredibly low prices. This freight forwarder receives a large amount of cargo, and their freight fees are paid per shipment. You hand over the cargo and must pay first. They might collect millions in freight fees, then hand over the cargo to their upstream company, and pay these fees to a prearranged company.

Many of these prearranged companies are set up by their relatives. Then they claim that their company has no money. They don't pay the upstream company with the collected freight fees but instead transfer the money to the prearranged company, not keeping the goods in their warehouse but in the upstream company's warehouse. Sometimes the goods are even shipped out because they might have a monthly settlement arrangement with their upstream company, exploiting the time difference.

The goods might already be overseas, stored in an overseas agent's warehouse. They didn’t seize your goods but can prove that they paid the collected freight fees according to normal business rules. Don't forget, they might also have lawyers. They could have paid seven or eight companies, owing money to each, then claim bankruptcy. Every year, many new freight forwarder China companies are registered, and some go bankrupt. Statistics show that most freight forwarder China companies have a survival rate of less than three years.

So, how can factories find a reliable freight forwarder China? In fact, there are many basic aspects to judge from, such as whether it’s a small freight forwarder operating from urban villages with just two or three people, and how many years the company has been in business. These two points can basically determine if a freight forwarder China is reliable.

Sunny Worldwide Freight Forwarder China was established in 1998 and has been operating for 26 years. In April 2021, we promised to organize a team-building event under the Red Ribbon Tree annually to achieve the dream of a century-old enterprise. Our goal is to become a century-old enterprise! With our many years of honest business, we have purchased 1800 square meters of Grade A office space in Shenzhen's commercial office district, one of the few in the industry. If you're not assured, you can come and inspect it in advance. It’s easy to verify the authenticity of this information. Think about it, a freight forwarder China that has been in business for 26 years and owns its office space, isn't it a reliable company?

As a freight forwarder China with 26 years of operation, we care more about our customers' needs than they do. Except for natural disasters, we have a 99% on-time rate. If you have international transportation needs, please contact us. anytime at jerry@swwlogistics.com.cn. We are confident you will be satisfied.