Hand Carry Service or On Board Courier (OBC), also known internationally as Hand Carry Service or On Board Courier, refers to the transportation of goods that are particularly urgent internationally or domestically, carried by a dedicated person and transported between two places by fast transportation means such as airplanes or high-speed trains. It is currently one of the fast modes of transportation for goods. The door-to-door transportation time can usually reach 24 hours between continents and 8-12 hours within continents, making it one of the commonly used transportation methods for high-tech and life science enterprises, as well as humanitarian assistance.
1、 The History of the Portable Transportation Industry
Internationally, the international cold chain transportation portable transportation industry has a long history. Since the development of the express delivery industry, UPS and DHL have been delivering urgent items through portable transportation. In the United States and Europe, some established portable transportation companies have a history of 30 to 40 years, with larger portable transportation suppliers having annual sales of 500 to 600 million US dollars. These enterprises have gradually developed with the rise of high-end manufacturing and technology industries in the West, the revolution in information technology, the transformation and upgrading of the manufacturing industry, as well as the consumption and service industries. Internationally renowned professional portable transportation service providers include Speed Global, Marken, ACS in the UK, and other companies.
Due to the late reform and opening up, the relatively low-end products manufactured in the manufacturing industry, and the influence of customs policies, China's portable transportation industry started relatively late and developed relatively slowly. The development of China's portable transportation industry has gone through two stages:
The ten years from 1996 to 2006 can be seen as the first stage. During this stage, hand transport has a proper noun called "express mail", which means that the goods to be transported by hand are mainly three free goods of express mail, mainly low value and low value-added low-end manufactured products such as documents, sample clothes, cloth samples, processing accessories and a small number of electronic products, Most products are declared as Class A or Class B duty-free items, and the ports of arrival are usually South Korea, Japan, Taiwan, and Hong Kong, mainly to meet the needs of most multinational clothing processors for rapid circulation and delivery schedules at that time. The pricing of goods is usually based on kilograms, and the fees are relatively low, only slightly higher than the fees for regular express. At that time, the freight rate for portable transportation in South Korea was about 45 yuan per kilogram, while the portable freight rate for Hong Kong routes was only over 30 yuan per kilogram, resulting in a relatively large volume of goods and a complex category of goods, often with thousands of express orders under a total order. In terms of customs supervision, at that time, the main mode was to seal the terminal building to the express center and apply for inspection and release at the express center. Customs supervision was difficult, and there were often cases of splitting orders and reporting to avoid customs duties and taxes; At that time, the main domestic suppliers that adopted this model included Jingmao and Guangguang, Yongguangtai, Sinotrans (Beijing), etc. However, with the increase in domestic labor costs, the low-end manufacturing and processing industries have rapidly declined, including textile and clothing enterprises such as South Korea, Japan, Taiwan, etc., which are rapidly transferring to countries with lower labor costs such as Southeast Asia, resulting in a serious shortage of demand for the "express delivery" market, leading to the stagnation or even cessation of the express delivery industry.
Since 2007, it can become the second stage of the development of portable transportation. During this decade, China's manufacturing and trade have been constantly undergoing this change. Firstly, due to the rapid growth of domestic consumer demand for high consumption products such as automobiles and mobile phones, international multinational automobile and communication manufacturing companies have increased their investment in China and rapidly driven investment growth in related surrounding industries. However, the competitive advantage of traditional light industrial products has been continuously decreasing, The trend of consumption upgrading driving industrial upgrading has taken shape. Subsequently, the cultural industry emerged, and cultural industries such as animation and film and television also flourished; In recent years, emerging industries represented by life sciences and pharmaceutical research and development have rapidly developed with strong support from national policies. In this situation, international cold chain transportation has attracted large foreign portable transportation providers to enter the Chinese market and seize market share. The portable transportation products in this stage also have significant differences from the first stage, mainly due to:
1. Products with higher value, such as automotive electronic control components, integrated circuits, high-end circuit boards (multi-layer and soft boards), mobile camera components, other communication components, molds, etc. Customers are mainly concentrated in high-end manufacturing enterprises, automotive manufacturing enterprises, mobile communication manufacturing enterprises, research and development institutions, etc;
2. Most of the importers and exporters are large enterprises or multinational corporations, with good reputation and large scale, and strict management and internal control mechanisms;
3. The names of import and export goods are relatively single, usually carrying one or several names of goods at a time, and actively declaring and paying taxes, making it easier to supervise;
4. The demand for goods is more urgent, and the delivery time is usually required in hours. Every hour late will result in significant fines from customers or significant losses to the production line, or involve life safety.
At this stage, the declaration behavior of portable transportation mainly occurs at the scene of the passenger and cargo special window in the terminal building. Customs supervision is relatively strict and inspection is convenient. Due to cameras being visible everywhere in the terminal building, it is difficult to violate the law. At the same time, the 365 day uninterrupted declaration time of the "passenger and cargo special window" at Shanghai Airport provides great convenience for enterprises to declare.
During this period, the main portable transportation companies included Speed Global, Marken, and others, with only Tengyi being a local enterprise.
2、 Reasons why enterprises need portable transportation
From the perspective of transportation costs, the current cost of portable transportation may be several times or even dozens of times that of ordinary sea and air transportation, and the price can be described as high. So why do so many enterprises still need this demand? My summary mainly includes the following points:
1. A component of an automated assembly line malfunctions, and the manufacturer of the assembly line is a foreign enterprise. In general, the cost loss per day of downtime is several hundred thousand yuan. Therefore, enterprises may choose to use a portable transportation method at a cost of several thousand or tens of thousands of yuan, because the earlier the spare parts are delivered, the smaller the loss; This may occur in highly automated industrial enterprises at present.
2. Suppliers are distributed in industries around the world, especially in the automotive manufacturing industry. A complete vehicle is assembled from thousands of different components, and there may be hundreds to thousands of suppliers. Once a certain component cannot be delivered on time, it will cause the entire production line to be unable to assemble, resulting in huge daily losses. Especially in international vehicle manufacturers, only a few major brands have a significant market share, such as General Motors, Volkswagen, Ford, Honda, Toyota, etc. All automotive component suppliers have only one or two customers, so the pressure on suppliers from a single customer is enormous. Losing a customer often means that the enterprise cannot continue to survive, so no one dares to offend the vehicle company, Even some complete vehicle companies impose a fine of $500 per minute of delay on their suppliers, which forces automotive parts suppliers to reach an agreed delivery date regardless of cost when there are supply chain issues (such as air freight suppliers being unable to guarantee space or cargo transit issues).
3. Some high-tech enterprises have a high product defect rate due to various unpredictable reasons during a certain period, which requires timely replenishment. Otherwise, it may cause their customers to be unable to complete orders on time, resulting in huge fines. We once had a customer who specializes in supplying circuit boards for Foxconn's mobile phone motherboards, or more specifically, producing motherboards for iPhone phones. Due to the many processes involved in the circuit board manufacturing industry, the technical requirements for each process are very high, especially for difficult multi-layer boards and soft boards. Minor changes in temperature, humidity, dust, and other factors may lead to the scrapping of products in batches, This company has encountered this situation. During the delivery of Foxconn's products, a large number of defective products were detected by Foxconn's on-site inspectors and had to be quickly restocked within 24 hours by hand transportation. However, the subsequent products still had a high defect rate, which led to it having to continuously restock and return goods by hand transportation within a month.
4. Some products related to life sciences and clinical treatment must be transported by hand to ensure their speed and safety. The World Red Cross Organization sends stem cells from volunteers from different countries to leukemia patients around the world through international portable transportation countless times a year to ensure the activity and success rate of hematopoietic stem cells for bone marrow transplantation. Approximately 2500 patients in China who require organ transplants each year lose their lives due to delayed delivery of transplanted organs. The research on the treatment of cancer and other diseases through genes and stem cells has developed rapidly both domestically and internationally. Some of these products will lose their activity once transported for too long, so they also need to be transported by hand.
5. High value products need to be transported by hand to ensure their timeliness and safety. Jewelry and diamonds, particularly important documents, highly precise instruments and technological products, have high inherent value, and the cost of portable transportation accounts for a relatively low proportion of their overall selling price. However, they can meet their needs for timeliness and safety.
6. Aircraft and marine repair spare parts. Sometimes when an aircraft or ship arrives overseas, it malfunctions and the local area is unable to provide maintenance spare parts. To reduce the high cost of detention, the spare parts can only be transported by hand to the destination of the aircraft or ship as soon as possible.
7. All kinds of accidents encountered by other production enterprises need to be remedied through the high timeliness of portable transportation or gain the advantage of commercial competition, such as the strike of airlines, the strike of shipping companies, the change of suppliers, and the need to send samples to customers as soon as possible in order to compete for new orders with competitors (for example, Foxconn "always sends samples to customers' tables one day earlier than competitors").
3、 Foreign policies and customs supervision for the portable transportation industry
Due to developed countries such as the United States, Europe, and Japan being 20-30 years ahead of China in terms of industrial upgrading and transformation, the history of portable transportation in these countries is also relatively long. There are more advanced manufacturing and high-tech enterprises, and they have a high acceptance of high-quality services for portable transportation but high priced shipping fees. In addition, the legal system is relatively sound, and enterprises have a strong desire to maintain good credit, In case of breach of contract and delay in delivery, the cost is relatively high. Therefore, governments of all countries generally support portable transportation, a high-end emergency logistics business, and have introduced many convenient measures to facilitate and speed up the customs clearance of portable goods. Especially in countries where high-end manufacturing is more developed, this situation is more evident.
Taking the European Union as an example, their law stipulates that when passengers carry commercial goods worth less than 1000 euros for export, they can declare at the customs site of the terminal, submit the goods and documents to the customs, and release them on the spot after customs review. The entire process generally does not exceed 5 minutes. Goods exceeding 1000 euros can be pre declared online through the customs system. Before boarding, the declaration documents and goods are handed over to the airport customs for verification, and the customs release them on the spot. The entire process generally does not take more than 10 minutes.
For goods imported into the European Union, pre declaration can be carried out in the system. Usually, the pre declaration is completed before the passenger's plane lands. After the passenger arrives and claims their luggage, they voluntarily submit the documents and goods to the customs, and the customs will inspect and release them on the spot. The entire process usually takes 15 to 20 minutes.
The customs clearance procedures for portable transportation in the entire European Union, the United States, developed countries such as Japan, Australia, and Canada are roughly the same. Facilitating international trade, promoting the import, export, research and development of advanced manufacturing industries, paying attention to the innovation and creation of life science products, and solving the problems encountered by enterprises are almost a consensus and trend around the world.
4、 The Handheld Transport Industry's Customs Clearance Mode and Supervision in China
At present, only international airports in Beijing and Shanghai in China have "passenger cargo" special windows for customs, and goods transported by hand are mainly declared through the "passenger cargo" special window.
As a developed city in China's economy and at the forefront of reform and opening up, Shanghai's customs policies are undoubtedly good. The "passenger and cargo special window" of Shanghai Pudong Airport Customs is manned 365 days, and the working hours exceed 8 hours, greatly facilitating the customs clearance business for passengers and enhancing Shanghai's international image. The customs clearance of Beijing International Airport adopts a normal schedule plus reservation system. As an airport with a large domestic passenger flow, the establishment of this special window also facilitates international passengers and domestic enterprises that need portable transportation. Unfortunately, other cities across the country may not have established "passenger and cargo windows" at airports due to insufficient international flight density. Many companies that require international portable transportation must first transport their goods to Beijing and Shanghai before they can apply for import and export declarations.
The clearance speed of the "customer with goods" special window is quite fast. Usually, export goods are reviewed within 2 hours, while import goods are reviewed within 3-4 hours. If there is a situation of customs inspection, the inspection work is usually completed on the same day. This also ensures the high timeliness of international portable transportation.
5、 Future Development and Prospects of the Industry
During the "13th Five Year Plan" period, economic and social development entered the New Normal, which put forward new requirements for the development of China's logistics industry.
The State Council issued the strategy of "Made in China 2025" and proposed to strive to become a manufacturing power in ten years. China is gradually transitioning from mid to late industrialization to late industrialization, with a prominent feature of transitioning from traditional resource intensive to knowledge and technology intensive industries, and extending from the middle to high end of the industrial chain. As an important productive service industry, the logistics industry is an important transformation direction for service-oriented manufacturing, and mid to high-end industries require matching logistics services. The contribution of consumption upgrading to economic growth has increased, and higher requirements have been placed on the refinement, response speed, and integration level of logistics services. During the 13th Five Year Plan period, the demand for specialized, personalized, and diversified logistics solutions will increase.
The country proposes mass entrepreneurship and innovation, creating a new engine for development. Innovation is placed at the core of the overall logistics development, with a focus on releasing new demand, creating new supply, and accelerating the transformation of development momentum.
At the same time, China's economy will accelerate its integration into the world, especially the implementation of the "the Belt and Road" national strategy, which puts forward higher requirements for international logistics. It is urgent to make up for the "weakness" of international logistics and provide a solid logistics guarantee for domestic enterprises to "go global".
In this international and domestic situation, actively developing the high-end logistics industry represented by portable transportation is in line with the national strategic requirements and the trend of the times. It can promote the logistics industry to shift from the traditional extensive development model of relying on cost and price competition, from pursuing standard speed growth to quality and efficiency growth, from cost factor driven to efficiency improvement and innovation driven Promote the improvement of quality and efficiency in the entire logistics industry.
As a leader of the Chinese economy, Shanghai is committed to "building an international economic center with strong comprehensive economic strength, extremely high industrial capabilities, and strong agglomeration and radiation capabilities. We adhere to the common and integrated development of the three, two, and one industries, attach greater importance to the development of the real economy, accelerate progress towards the high-end of the industrial chain, and continue to promote the construction of a new industrial system led by modern service industries, strategic emerging industries, and advanced manufacturing industries, Building a globally influential technology innovation center and trade center, the portable transportation industry will benefit from the overall industrial upgrading and development of Shanghai and its surrounding areas, better serving innovative high-tech enterprises with high added value and high timeliness requirements. At the same time, it will further consolidate and expand market demand in advanced manufacturing, and contribute to the overall transformation and upgrading of the logistics service industry.
The author of this article is the General Manager of Shanghai Tengyi Pace International Freight Forwarding Co., Ltd., Yu Songhai
If reprinting is required, please obtain the author's consent.
