Consultant Insight: Cross-border e-commerce logistics services and options grow

Every mode of transportation — ocean, air, truck, rail and parcel — continues to report an increase in e-commerce volumes. While it’s difficult to pinpoint exact figures, market research firm eMarketer forecasts $5 trillion in global e-commerce sales this year. [caption id="attachment_69752" align="alignright" width="298"] Cathy Roberson, Cargo Facts Consulting senior consultant and Air Cargo World columnist[/caption] In response to this growth, FedEx announced during its fiscal third-quarter earnings in March that it would introduce a cross-border e-commerce service, FedEx International Connect Plus (FICP), from Europe to the United States to Asia, and within Europe. “The same story outside of the United States is playing out everywhere in the world with more than 85% of our parcel growth opportunity coming in e-commerce, and we did not have an international product that really had the right features of service for serving this massive growth opportunity, and we are under-penetrated,” Brie Carere, FedEx’s chief marketing and communications officer, told analysts during the company’s earnings call in March. Included in the new service is customs clearance. Carere highlighted as benefits to FICP the U.S. Customs and Border Patrol’s Type 86, which allows for import entries valued at less than $800 to be filed via the Automated Broker Interface for clearance, and the company’s automation of clearance capabilities. While Carere highlighted U.S. Customs, it’s likely that EU customs clearance is also included. A May 11 press release announced a partnership between FedEx and KPMG to help e-commerce sellers manage value-added taxes (VAT) changes that will go into effect in the EU on July 1. Among the changes will be the requirement that suppliers and online platforms selling imported goods to buyers in the EU collect, declare and pay the VAT to the tax authorities, rather than requiring the buyer to pay the VAT. Included also are import one-stop shops (IOSS), electronic portals that businesses can use to comply with their VAT e-commerce obligations. See also: Retail Race: Customs rushes to keep up with cross-border e-commerce According to the FedEx announcement, KPMG will offer a streamlined IOSS solution at a discounted fee to help FedEx customers who are e-commerce sellers outside of the EU with necessary IOSS compliance. Customs services to assist with such changes as the new EU VAT change and the U.S.’ Type 81 are helping to promote cross-border e-commerce, and potentially help keep e-commerce packages in FedEx and other integrators’ networks through to the last mile. This may improve last-mile delivery times, reduce theft or damage, and offer the bonus of maintaining parcel tracking end-to-end in one system. DHL and UPS already offer several cross-border e-commerce services, and FedEx’s Carere admitted that FedEx has some catching up to do. Other options Integrators are certainly not alone when it comes to cross-border e-commerce, as freight forwarders are quickly moving into the space as well. Earlier this year, JAS Worldwide acquired freight forwarder and supply chain management provider Tigers to expand its e-commerce capabilities. Tigers offer specialized e-commerce logistics solutions via 32 global omnichannel distribution hubs. In addition, forwarder AIT Worldwide Logistics has expanded its e-commerce capabilities by acquiring Fiege Forwardin g from the latter’s Germany-based parent company, Fiege Group. The international transportation portion of Fiege’s Europe-Asia service, CheckOut2China, promises transit times of four to eight days from Fiege’s European warehouses to Chinese customers, and was included in the acquisition and fits nicely with shippers’ e-commerce logistics strategies. A significant benefit of using freight forwarders, of course, is the international trade and customs compliance knowledge they bring to the table, not to mention the ability to obtain the necessary capacity for customers. Cross-border e-commerce logistics services and options are growing. One size does not fit all, so it will be necessary for shippers to understand varying needs and the services and options available.

Consultant Insight: Cross-border e-commerce logistics services and options grow

Jet fuel prices elevated after Colonial Pipeline cyberattack

Azul to upgrade freighter fleet with A321Fs

Azul to upgrade freighter fleet with A321Fs

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password