/ By tjchinafreight ivy / Shipping

South Korean shipbuilding industry returns to No. 1 after 7 years

With its strong performance in the field of LNG ships, the Korean shipbuilding industry has won half of the orders in the global newbuilding market.

According to data released by Clarkson on April 5, in the first quarter of this year, the global new ship order volume was 9.2 million revised gross tons (CGT), a decrease of 41% compared with the same period last year. Among them, South Korea undertook 4.57 million CGT, and the global The market share reached 49.7%, an increase of more than 12 percentage points from 37.2% in the first quarter of last year; China has undertaken 3.855 million CGT, and the global market share has dropped from 46% in the first quarter of last year to 41.9%; Japan has undertaken 248,400 CGT , the global market share fell to 2.7% from 12.8% in the same period last year.

This is the first time in the past seven years that a Korean shipping company has ranked first in the world in terms of orders received in the first quarter. At the same time, this is also the first time since Clarkson started statistics in 1996 that the number of orders received by South Korean shipping companies in the first quarter has reached about 50% of the global market share.

In addition, in March this year, the global order volume for new ships was 3.23 million CGT. The number of orders received by South Korean shipping companies also ranks first in the world in a single month, with a total of 1.64 million CGTs, accounting for 51% of the global share. Chinese shipbuilding companies ranked second with 1.36 million CGT orders, accounting for 42% of the global share.

As of the end of March, the number of global hand-held orders was 94.71 million CGT, an increase of 1.55 million CGT from the end of February. Among them, South Korean shipping companies have the largest increase in orders, reaching 1.12 million CGT; Chinese shipping companies have increased orders by 610,000 CGT, and Japanese orders have decreased by 240,000 CGT.

Industry insiders in South Korea said that last year, South Korea handed over the world's largest new ship order volume to China. In the first quarter of this year, the global new ship order transaction volume decreased significantly year-on-year, but South Korean shipbuilding companies worked hard and preemptively seized the place. The order finally overtook China to regain the first position. This is mainly due to the large number of LNG ship orders undertaken by South Korean shipbuilders. Regarding the reasons for the significant decrease in the number of orders received by Japanese shipbuilding companies, a Korean industry official explained that the data of the Japanese shipbuilding industry traditionally lags behind, so there may be changes in the future.

According to statistics, among the 38 large-scale LNG ships of 174,000 cubic meters or more ordered globally in the first quarter of this year, South Korea has undertaken 27 vessels, accounting for 71%; China has undertaken 11 vessels, accounting for 29%. In addition, a total of 44 container ships above 8000TEU have been ordered globally this year, of which South Korea has undertaken 21 ships, accounting for 47.7%.

A relevant person in the Korean industry said: "Although the number of new ship orders has decreased this year, Korean ship companies are benefiting from the booming LNG ship market. In the first quarter of this year, the number of LNG ships undertaken by Korean ship companies increased significantly, and the number of orders on hand It is also increasing, and the delivery time has been scheduled to the end of 2025. At present, European countries are looking for alternative sources of Russian energy, and the demand for LNG ships will continue in the future.”

/ By tjchinafreight ivy / Shipping

The epidemic will not bring down Shanghai Port and Ningbo Zhoushan Port

Recently, the epidemic prevention and control in Shanghai has been in a severe period, and the infection rate has continued to rise. Shanghai Port cannot survive alone, and is making every effort to coordinate resources from all parties to keep the port open. On the other hand, many truck drivers were diagnosed in Ningbo, and the local government immediately introduced a policy of one nucleic acid per day for truck drivers to further tighten the prevention and control policy. As the two largest ports in the world, Shanghai Port will complete a container throughput of 47.3 million TEU in 2021, and Ningbo Zhoushan Port will complete a cargo throughput of 31.08 million TEU. These two ports account for nearly 40% of the national port container throughput. In this regard, the normal operation of the two ports is related to the smooth global supply chain, and the sensitive market remains highly concerned about this.

Recently, a screenshot of densely crowded ships in the waters near Shanghai circulated on the Internet. The screenshot was accompanied by a caption saying, "Hundreds of ocean-going freighters have been stranded in the open seas of Shanghai, and the supply chain is broken here."

The impact of this round of Shanghai epidemic on international shipping has also aroused high public attention.

On April 2, SIPG also responded to the news of "severe congestion in Shanghai Port": "We have noticed that some media have published false reports on the serious congestion in Shanghai Port, which mentioned that 'Shanghai's port is delayed. The situation is getting more and more serious', 'the number of ships waiting to be loaded and unloaded in Shanghai port has soared to more than 300 this week' and other unverified remarks and pictures, according to the internal data monitoring of Shanghai port, since February, Shanghai port terminal production and operation As usual, there is no congestion of container ships." SIPG further stated that there is absolutely no "congestion comparable to the port congestion in West America" ​​in Shanghai Port. The number of waiting ships is in single digits, and the average number of waiting days is normal.

Previously, it was believed that due to the severe epidemic situation in Shanghai, the transportation of import and export goods was also affected, and some ships calling at Shanghai Port may be diverted to Ningbo Zhoushan Port or Nanjing Port.

On April 6, the "Daily Economic News" reporter asked the relevant person in charge of Ningbo Port (601018.SH) to verify the above situation. The person in charge responded: "The company is now doing a good job of epidemic prevention and control in accordance with the requirements of the superior and the actual situation of the enterprise to ensure the continuous, stable and healthy development of port production. As for the ships that previously berthed at Shanghai Port, they will be moved to Ningbo Zhoushan Port. The situation is not obvious at the moment and we are monitoring it.”

On the same day, a person in charge of a shipping agency in charge of Ningbo also told reporters that from what he knew, Shanghai's port calls are relatively normal, and there has not been a large number of changes to Ningbo port.

At the same time, Ningbo Zhoushan Port had to face the problem of epidemic spillover. From April 4th to 5th, 6 of the 7 cases found in Ningbo City were road freight-related drivers and express service area staff, and one of them was in Beilun District; as a model of anti-epidemic, Ningbo Zhoushan The port quickly made a decision to close some container shipping bases in Beilun District, and organized truck drivers to conduct nucleic acid tests every 24 hours. For example, Ningbo Meidong Container Terminal Co., Ltd. issued a notice on April 3 that truck drivers entering the port area. A free nucleic acid test needs to be completed immediately before entering the port area; at the same time, for foreign vehicles, Ningbo City requires drivers to actively cooperate with nucleic acid testing and antigen testing at the high-speed bayonet. In addition, Ningbo has implemented closed management of staff in the city's expressway service areas, strictly implemented daily nucleic acid testing measures, and suspended refueling operations.

At present, Ningbo Zhoushan Port is still in normal operation as a whole, and the warehouses that were temporarily closed due to the detection of tight connections will also be unsealed from tomorrow. In addition to Ningbo City, two freight drivers in Shaoxing City were also found to be infected with the new crown. The freight drivers and passengers outside the city are required to perform nucleic acid tests every two days on the basis of implementing nucleic acid tests every two days, and each time they return to Shaoxing Expressway.

The port circle (ID: gangkouquan) believes that if the impact of the epidemic expands, the impact of the collection and distribution problem continues to expand, and the ports in the Yangtze River Delta region cannot handle the problem of transportation route configuration, which will be a heavy blow to the global supply chain. of. On the premise of "preventing imports from outside and preventing exports from inside", Shanghai should increase the capacity of waterway barges as soon as possible to transfer the pressure of road collection and distribution, while Ningbo Zhoushan Port must learn lessons and give priority to preventing the spread of the epidemic. The two ports will not be dragged down as the outside world fears, but for a period of time in the future, whether it is the cargo owner, the shipping company, or the port, it will be under the pressure of repeated epidemics.

/ By tjchinafreight ivy / International

Lebanon and its central bank are bankrupt.

Al-Shami told local media: "Both the state and the Lebanese central bank are bankrupt, the losses have been incurred and we will try to reduce the losses for the people."
He said that the losses caused by the bankruptcy will be shared by the central and local governments and the Lebanese central bank, and neither party has any objection to the distribution of responsibilities for the losses.

Lebanon's central bank governor Riad Salameh on Monday denied that the institution he headed for 30 years was bankrupt and said it was still fulfilling its statutory duties despite losses in the financial sector.
The governor's comments in a statement were apparently in response to the deputy prime minister, who said on Sunday that both the state and the central bank were bankrupt.
"The news of the bankruptcy of the central bank is not true," Salameh's statement said. It added that the bank was still carrying out its statutory duties under Article 70 of the Money and Credit Law, which stipulates that the bank is entrusted with the maintenance of Lebanon's monetary integrity and maintaining economic stability.
Salameh said: “Despite the losses in the Lebanese financial sector, which the Lebanese government is currently working on with the International Monetary Fund to develop an economic recovery plan to deal with these losses, the Lebanese Central Bank has a role and will continue to do so.”

Lebanon has been grappling with a severe economic crisis since late 2019, including a sharp currency devaluation and shortages of fuel and medical care.

Lebanon's currency has lost 90 percent of its value, reducing people's ability to access basic goods, including food, water, health care and education, and is experiencing power outages due to fuel shortages.

Al-Shami said the situation in Lebanon cannot be ignored, so bank withdrawals cannot be open to everyone. Due to the ongoing economic crisis, foreign currency cash withdrawals in Lebanon have been severely restricted since 2019.

According to the relevant regulations, "bankruptcy" means that the government is unable to pay debts and interest as they come due. Among them, one of the reasons for the bankruptcy of a country is a lack of liquidity, when a country is temporarily unable to repay its debts and pay interest due to its inability to liquidate its asset base quickly, it may declare “bankruptcy”. However, members of the Lebanese Economic and Social Council said in an interview: "Although Lebanon has [really] faltered in repaying its debts, it is not yet a bankrupt country".

Regarding the current social and economic situation in Lebanon, some buyers' production and business activities are affected by social unrest in the country and the shortage of domestic dollars, resulting in payment arrears. Coupled with the current Russian-Ukrainian conflict and the global epidemic, the tourism industry, which is Lebanon's main source of foreign exchange income, has been further affected.

It is expected that business risks will further increase as the multiple political and economic situations in Lebanon continue to deteriorate. Especially in the current situation where Lebanon's exchange rate has plummeted, the local currency has depreciated, and the economy is facing high risks, importers are likely to use this loophole to damage the interests of suppliers due to cost pressures. Good risk control, beware of risks such as abandonment and non-payment by buyers at the destination port, so as to avoid losses caused by the loss of money and goods.

/ By tjchinafreight ivy / International

Sri Lanka in deepest economic crisis in decades

According to foreign media reports, Sri Lankan President Gotabaya Rajapaksa declared a state of emergency in the country on April 1. Sri Lanka is mired in its worst economic crisis in decades, facing severe shortages of foreign currency and fuel and other necessities.
Sri Lanka, a country of 22 million people, is dealing with a severe foreign exchange crisis that has devalued the country's currency and affected the supply of basic commodities such as food, medicine and fuel. The government is struggling to secure foreign exchange to pay for fuel and other vital imports.

What happened in Sri Lanka?

The island's foreign exchange reserves have hit rock bottom, with commercial banks unable to obtain dollars to finance imports of food, fuel and medicines. Sri Lanka was in the throes of a severe economic crisis when the Covid-19 pandemic hit, reducing remittances from foreign workers and denting the lucrative tourism industry - the economy's main source of dollars.
In turn, Sri Lanka's debt management plan, which relied on access to these markets, was derailed, and foreign exchange reserves plummeted by nearly 70% in two years.

What happened to Sri Lanka's foreign debt?

The country had only $2.31 billion in reserves left as of February, but faces about $4 billion in debt repayments in 2022, including a $1 billion international sovereign bond (ISB) due in July.
The ISB accounts for the largest share of Sri Lanka's external debt at $12.55 billion, with the Asian Development Bank, Japan and China being the other major lenders.
In an assessment of the country's economy published last month, the IMF said public debt had risen to "unsustainable levels" and foreign reserves were insufficient to cover near-term debt.
Citi Research said in a report late last month that the conclusions of the IMF report and the government's recent measures were insufficient to restore debt sustainability, strongly suggesting "the need for debt restructuring."

Laugfs Gas LGGL.CM, which ordered cooking gas, was unable to get $4.9 million in payments from local banks due to a severe shortage of foreign exchange, and a vessel carrying 5,500 metric tons of gas had to leave Sri Lankan waters.

The Sri Lankan government said it was seeking a bailout from the International Monetary Fund and loans from India and China. Indian traders have loaded 40,000 tonnes of rice, the first large-scale food aid from India since Colombo received a line of credit from New Delhi.

After offering CBSL a $1.5 billion swap and a $1.3 billion syndicated loan, China is considering a $1.5 billion credit line and up to $1 billion in separate loans to the island nation.

/ By tjchinafreight ivy / Shipping

Pakistan Customs Manifest Has New Regulations

Korea Shipping recently announced that, according to the latest notification from Pakistan Customs, from April 1, 2022, for goods exported to various ports in Pakistan, detailed information such as the consignee’s and the notifying party’s importer’s tax number must be added to the manifest. .

In order to avoid problems such as failure of customs clearance by the consignee at the destination port and delay in delivery due to the lack of manifest contents, please be sure to complete the confirmation information of the bill of lading in strict accordance with the following requirements, otherwise all responsibilities and expenses arising therefrom shall be borne by the customer.

The specific requirements are as follows, and the following contents need to be entered in the address column of the consignee and the notifying party of the bill of lading:

1. Real and valid detailed company address

2. NTN (CNIC) number:

- The consignee is a company: the Pakistan National Tax Number (NTN) of the importer company

- The consignee is an individual: Individual National Identification Number (CNIC)

3. Contact number

4. Mailbox

/ By tjchinafreight ivy / International

Ukraine and Russia close to agreement

Turkey said Russia and Ukraine had made progress in talks to end the war and that the two sides were "close to a deal".

Russian troops invaded Ukraine on February 24, and President Vladimir Putin called his country's operation a "special operation" aimed at demilitarizing Ukraine and weeding out what he sees as dangerous nationalists. Ukraine and the West say Putin has chosen to wage an aggressive war.

On April 2, local time, Arahamia, head of the Ukrainian delegation to the Russian-Ukrainian negotiation, said in an interview with the media that Ukraine and Russia are close to reaching an agreement, but there are still differences on the Crimea issue.

Negotiations are taking place online every day, and a working group of lawyers and diplomats is drafting the final document, Allahamia said. Russia has verbally accepted the terms except for the Crimea issue for the draft Ukraine presented in Istanbul. Ukraine is waiting for a written confirmation from Russia.

According to Alahamia, the Russian side believes that the draft document is sufficiently complete, and the working group is preparing topics for a possible meeting between the two presidents. Alahamia believes that the meeting between the Ukrainian and Russian presidents is very likely to be held in Istanbul, Turkey.

At present, this claim has not been confirmed by Russia.

Head of Ukrainian delegation to Russia-Ukraine talks: Will not sign any document that provides Russia with veto power

On April 2, local time, Alahamia, head of the Ukrainian delegation to the Russian-Ukrainian negotiations, said in an interview with the media that if any document stipulates that Russia has veto power, then Ukraine will not sign the document.

Allahamia said that Russia's veto power means that Ukraine will not have security guarantees, so Ukraine advocates signing a peace treaty with Russia, but security guarantees are provided by other countries, and Russia cannot stop this process. Allahamia believes that Ukraine will allow Russia to accept this position, otherwise it will be impossible to sign any documents.

Allahamia revealed that three NATO members, Turkey, Germany and Italy, are ready to become security guarantors in accordance with Ukraine's vision.

Allahamia emphasized that when Ukraine's security is guaranteed, a referendum will be held to decide whether to revise the provisions of the Ukrainian constitution on non-aligned neutrality; if the referendum supports Ukraine's continued membership of NATO, then Ukraine will hold new negotiations with Russia. .

On April 2, local time, Russian Presidential Press Secretary Peskov said in an interview with Belarusian Channel 1 that Russia hopes to continue negotiations with Ukraine in Belarus, but Ukraine is opposed to this.

Peskov said that the negotiations between Russia and Ukraine are not easy, but the important thing is that the negotiations can continue and the military action can be ended through negotiations. It does not matter where the venue of the negotiations is.

Peskov believes that the double standards of the West have been and will continue in the future, and Russia and Belarus have to deal with them, so patience and persistence are required.

Peskov promised that when Belarus is attacked, it will be regarded as an attack on Russia, and Russia will not hesitate to give it military assistance.

/ By tjchinafreight ivy / Shipping

Evergreen’s container ship ‘Ever Forward’ has declared general average

After the ship left Baltimore on March 13, the Ever Forward ran aground. For the common interests of cargo owners and the safety of all involved, Evergreen Shipping has been making every effort to refloat the stranded ship. Evergreen declared general average on April 17, given the increased cost of continued attempts to re-float the vessel. There have been no reports of injuries or contamination.

Ever Forward, a 12,000 TEU container ship owned by Evergreen Shipping (Hong Kong) Co., Ltd., a subsidiary of Evergreen Shipping Group, ran aground in Chesapeake Bay after leaving Baltimore on the evening of March 13. No casualties have been reported to the ship or its cargo. , and there are no signs of fuel leaks or contamination.

Dredgers have been digging around the stranded container ship, and groups of tugboats made two unsuccessful attempts to pull the 1,095-foot vessel out of the silt last week.

Under new plans announced by the Coast Guard, cranes will be used to remove some of the containers from the "long haul" to reduce their weight before the next rescue effort. The lifting operation will start as soon as a crane with the right lifting height is installed. Meanwhile, the dredger will continue to dig to a depth of 43 feet around the vessel. During these operations, the fairway will remain one-way traffic and a 500-yard safety zone will remain around the vessel.

Salvage experts determined that in their current state of loading, they would not be able to overcome the gravity of the "long-range wheel". The new program offers the best chance of successfully relaunching the long haul. ' said the Coast Guard.

Containers will be unloaded from the port and starboard sides of the 12,000TEU container ship and placed on a barge, which will transport the containers to the Seagrit Marine Terminal in the Port of Baltimore and unload them. The ship is currently carrying 4,964 general dry cargo containers, according to the Coast Guard. The Coast Guard said that for safety reasons, lifting operations can only be carried out during the day.

Once the required number of containers has been removed, another re-float attempt will be made using tugboats and pulling barges.

According to the Baltimore Sun, the plan calls for the removal of several hundred of the 4,964 containers on the long-haul ship, with most of the cargo remaining on board. Since the shipowner Evergreen Shipping has declared general average, the shipper needs to provide the necessary guarantees and documents to the general average adjustment company before the container cargo shipped to the Seagirt terminal can be recovered.

/ By tjchinafreight ivy / Shipping

Vietnam accelerates container production to compete with China

Chinese factories now account for more than 96% of the world's dry container and 100% of the reefer container market, and Vietnam is joining the fray and is providing the world with a new container export destination.

Vietnam's Hoa Phat Group, Southeast Asia's largest steelmaker, is making a foray into container manufacturing.
It sees potential synergies with its core steel production business.
Hoa Phat started construction of its plant Hoa Phat Container Manufacturing in Vung Tau province in December and is expected to be operational by the end of this year with an annual production capacity of 500,000 TEUs, all using steel produced in-house.
Two South Korean companies - Seojin Systems and Ace Engineering - have also built container factories in northern Vietnam, which are expected to be operational later this year.

Hefa Group: Plans to supply containers to the market in the fourth quarter

Nguyen Manh Tuan, vice chairman of Hoa Phat Group, said: "Shipping containers are part of the Hoa Phat company ecosystem, and Hoa Phat started building the container manufacturing plant amid a global shortage of shipping containers."

Hefa Group planned to start construction of the factory in June 2021, but due to the impact of the fourth wave of the new crown epidemic, the project was officially launched in November 2021, five months later than planned.

But after 3 months of construction, 5 workshops, with a total construction area of ​​nearly 7 hectares, began to erect columns. On February 22, 2022, the construction of the first truss of workshop 5 was completed.

Vu Duc Sinh, head of the container manufacturing division of Hoa Fatt Group, said the first machines and equipment at the plant are expected to arrive this month and construction will be fully completed by April. The construction of the factory is accelerating. There are 3-5 contractors on the construction site, who distribute the projects equally and strive to complete the capital construction within 6 months from the date of commencement of construction. We want to build factories as soon as possible to take advantage of the shortage.

In Vietnam, Hoa Phat was the first container manufacturer. Tuan explained that the high price of weathering hot rolled coil steel used to make containers would cost the company if imported, and we at Hoa Phat can produce this steel.

The Hefa Group's container factory will be commissioned in the third quarter of 2022, and products will be brought to market from the fourth quarter of this year. The plant is expected to have a capacity of 200,000 TEU per year by the end of 2023.

/ By tjchinafreight ivy / Cargo • International • Shipping

Maersk Bars on CMA CGM: We Oppose Stopping Plastic Waste

Not long ago, liner giant CMA CGM announced that it has banned all ships from transporting plastic waste, a move that has received support from NGOs.

But Maersk recently expressed a different view. The shipping company, also headquartered in Europe, warned that stopping the transportation of plastic waste will not only not improve the marine environment, but may also prevent the transportation of this waste to recyclable sites.

The NGO Plastic Change has urged Maersk to stop shipping plastic waste after rival CMA CGM announced it would no longer ship plastic waste for environmental reasons. Louise Lerche-Gredal, head of Plastic Change, wrote in an article, “It is time for Maersk to take a stance on whether they will continue to be part of the waste transport issue. Plastic waste not only contributes to pollution, it also contributes to the climate crisis. , and affect the most vulnerable societies in the world.”

Maersk said it would not do what CMA CGM did because banning the transport of plastic waste due to environmental concerns is not a good idea. "We do not think a blanket ban on the transport of plastic waste is feasible because such a ban would prevent us from helping responsible companies and organisations to transport plastic waste and other recycled materials to recycling sites in a responsible manner."

According to a Feb. 11 press release from CMA CGM, the decision to stop shipping plastic waste comes as the French carrier wants to work to prevent plastic waste from being "exported to destinations where sorting, recycling or recycling cannot be guaranteed." “About 10 million tons of plastic waste ends up in the ocean every year. If we don’t take action, this number will triple to 29 million tons per year in the next 20 years, which will cause irreversible damage to marine ecosystems, flora and fauna ."

CMA CGM said it transported around 500,000 tonnes of plastic waste in 2021. Maersk doesn't disclose the volume of veteran plastic waste shipped, but according to Plastic Change, Maersk ranks third.

Maersk emphasizes that it is "a responsible company and we of course take environmental protection seriously. Ensuring compliance with all legal and regulatory procedures regarding the import and export of plastic waste has always been embedded in our business and daily activities."

Maersk also works with an ocean cleanup organization. The organization recycles plastic waste in the Pacific, and stopping the shipment of plastic waste will prevent Maersk from assisting the organization in delivering the collected plastic to recycling sites.

/ By tjchinafreight ivy / FBA

What is the difference between overseas warehouse and FBA?

  • FBA, or Fulfillment by Amazon, means that sellers send products sold on Amazon directly to local warehouses. When a customer places an order, the Amazon system automatically completes the delivery.
  • Overseas warehouses refer to storage facilities established overseas. Cross-border e-commerce enterprises export goods to overseas warehouses in batches according to general trade methods. Once the order is placed, the item is delivered to the consumer.

Advantages of overseas warehouses

Faster delivery. It effectively reduces order response time by 50-70% compared to shipping from China. Additionally, it improves user experience and greatly reduces product turnaround time.

Reduce logistics costs. Through centralized delivery to overseas warehouses, local express delivery in the United States can reduce delivery costs by 30-50%.

FBA inventory adjustment is easy. For sellers, the overseas warehouse is the buffer warehouse of Amazon FBA, which is convenient and flexible to adjust the FBA inventory.

Disadvantages of overseas warehouses

Pay storage fees. The use of overseas warehouses requires payment of a certain fee, which is generally charged on a daily basis. And the cost of warehousing in different countries is also different, and sellers need to calculate the cost by themselves.

In stock. The premise of entering overseas warehouses is that sellers need to have a certain amount of inventory, which means that they need to stock up in advance, which will bring the risk of slow sales. And not suitable for sellers who sell special customized products.

Cash flow is inconvenient. Due to the large amount of stocking to overseas warehouses, the capital investment in stocking, logistics, warehousing, etc. is large, which can easily lead to a breakdown in the capital chain.

Sellers have high requirements for warehouse management data monitoring. Sellers need to monitor the detailed data of incoming and outgoing shipments, as well as putting on and off the shelves, otherwise it will easily lead to loss of goods or data mismatch. Some Amazon sellers responded that the inventory quantity did not match the actual number of products sold. Since Amazon has a complete warehouse management system, third-party overseas warehouses cannot guarantee that there will be no problems.

In essence, there is no difference between overseas warehouses and FBA. Both provide sellers with comprehensive warehousing and fulfillment services. However, there are obvious differences between the two in terms of service content and form.

1. The difference between service providers: FBA is Amazon's official warehouse distribution service, and after-sales service is provided by Amazon; overseas warehouses are provided by third-party service providers, responsible for the warehousing and distribution of sellers' products.

2. Different service forms. Once the seller has sent the goods to FBA, there is no need to deal with shipping related issues. The whole process from sorting to shipping is completed by FBA. The overseas warehouse is divided into two parts, first sorting and packaging in the warehouse, and then entrusting the local express company to complete the delivery service.

3. The service content is different. The service content of FBA is relatively simple, that is, it simply helps sellers deliver goods. The service content of overseas warehouses is more abundant. In addition to basic warehouse distribution, it also provides related services such as labeling and labeling, single-piece delivery, transit replenishment, quality inspection, and front-end logistics. For example, worry-free overseas warehouses can also realize customized services according to customer requirements.

4. Overall price difference. Combining all services, FBA is more expensive, while the overall cost-effectiveness of overseas warehouses is higher.

Other differences

Choose:

Amazon FBA warehouse has certain restrictions on the size, weight and category of products, so the choice is biased towards small, high and high-quality products

DH overseas warehouses have a wider range of choices than FBA warehouses.

Product:

FBA does not provide assembly services, and requires sellers to affix the outer box label and product label before entering the warehouse. If the product label is found to be damaged, it will be returned for repair.

DH overseas warehouses will provide sorting and assembly services before products are put on the shelves.