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eCommerce Logistics in USA & China with Burak Yolga of Forceget



Ladies and gentlemen welcome to amazing. Fda Post Today on with Barak Yoga of full gets freight-forwarding expertise seventy eight China in Shenzhen. He's established his own insult freight forwarding company from scratch which is not present in China. Usd by many of the country's sake breaks now living in Miami so getting quite an insect perspectives. Today and I thought he was important. Person to speak to one of the biggest challenges. Right now is supply. Sidon district Scifis set-aside really once oric on the show so Bartram welcome. Thank you so much. So how's life in Miami? We're just chatting about the fact that there's people carrying on like life is no more environments right now It's what is it today like end of March. Almost the you know things are in China going back to normal but now unfortunately they're more and more cases in the United States in it. Looks like you know. We have a pretty slow month in April and in May of businesses shut down right now. People are trying to stay in south currency and nothing official really As except near Simon the soft porn in Florida. A little bit luckier. Because we all look nicer wetter like a little warmer but Rest of the contracting is going to be a little bit more struggling with the winter cold weather so we'll see how it will go. Yes indeed. So let's talk about China for this episode. Then obviously he spent a lot of time in China Seven years in Shenzhen sounds like a novel or something East ICU WAYS. About how to do business in. China was potential for farmers and sellers while they super China particularly in the current situations. Let's get started with random questions I mean. First of all Is China reopening for business? Now when do you think that will be yes So eight hundred. Ninety percent of businesses are back to work but at the moment Most of the factories they don't have full capacity for production right now One of the reason is Roma chill suppliers are also having issues with sublime the enough raw material to the factories and another thing is the Roma tre prices like reading. Because they're really high right now for most of the product China and then one of the worst thing actually when this wire is China was doing. Tiny is some people now. China's largest Public Co. Lane China's most important almost eight hundred nine hundred million people traveling in mainland China. And maybe almost a hundred under fifty million people traveling at Bro. So that's where the wires hit so already. Most of the manufacturers were closed so that was what we were. What we were expecting is actually Those factories will come back to work End of January but things have changed like really badly China. They had to stay close until middle of March so during this time. Chinese factories are having serious issues with the cash flows. You know not receiving any orders. Because they're in the public lays but once they started coming back to work now the rest of the world They have the concern about their health. Most of the country's the government shutdown the countries like Italy France Germany all those countries. They're not doing a business right now. Which means China's factories don't get any orders from the rest of the world so so we're looking at the period of almost ninety days Not Having full capacity working so it's it's really massive cries for China's economy And you know this is going to have a big effect for the girls of the country for this year People back to work They everybody's wearing masks in China. My Office is back to work. We worked for bump for sometime in China. But now everybody's back to work It's difficult to find that domestic truck because prices really increased and another problem is You don't we don't have enough availability. Because most of the main ports in China like Seaports in a airport. Actually most of them they. They're closing in eighteen. Ninety nine percent of the Airplanes cancelled So it directly have the impact of freight as well because almost fifty percent of the air freight actually commercial wise were made by the passenger flights in the cargo. So now what we're looking at is the majority of Weiser cancelled so the airports are not working for the function. So everything is really connected. You know when we're talking about on the we talk about on the supply chain because it has also connection on the freight forwarding the custom the shipping times The pricing so everything is really connected to each other so Chinese doing better than a month ago Definitely about right now. They are having problems of receiving orders from overseas. So I think this is going to have a big impact in an economy and the most of the suppliers are going to have some serious problem with the cash flow. Okay so what is so to try and summarize there's a lot of stuff is sort of half working a rule. Materials prices are up and Sounds like a lot of air freight by being constrained as wet sea freight so What's the biggest constraint them would you say is it still labor or do they have most labor back in place now always rule materials or is it logistics or is it just a combination of all of them a combination of all of them right now for the majority of the people come back to work? accepted where on where the wires started who bay province which is one of the largest state in China so they they start actually Now removing the people from printing some people are going back to their daily life. The best stuff so there are almost to the Portland million. People were a crunchy in and been Wuhan. Them include a province which was like almost two months long so those people are also going back to work in the different cities. Like you know. They're going back to their Factories again in Shanghai and Ningbo in Gone Doll and chat always like big CD. So they're going back to our so right now. The the issue is not really a about people who go back to work. Most of the people are back to work. So they're factors are okay to produce. They have enough human source now. Old Employees back to management is back toward but the the issues right now is mostly with the roll roll mattress players. It used to be maybe some of our friends. Our customers are used to produce in twenty to twenty five days now the supply chain Timing increased almost out say like church the fifty percent so now some of the facts are they used to produce thirty days now. It's like almost four to five days and one of the issue made him also. The people wouldn't think of it as the product box. The cartoon mocks so there is a big shortage of the cartoon box in the market. Like you know the shipping supplies And user manuals would like pay per prices increase a lot in China so this is editor problem some of the factories and they finish production but they don't have enough packing material so everything comes together so it. It's a really complex station. Like everything comes together and right now as I get logistics. We are having our shipments shipping on time. We have good relationship with our Contractors we everything in advance but we're asking our customers to not let us their shipment time the same day. The ship is ready. We're asking people to give us some time like heads up like seven to ten days so that we know what discounting because if you let safe you send us the breaking the law stay. It's difficult to find track of the crisis increase because they know that you're Khanna desperate so I think the most important thing for Amazon sellers now to be following up the station. Very closely their freight forwarders. Their factories is very very important to be on top of everything. Every day. I mean China's people are okay with that right now because you know it's difficult time reading for Sellers Abbott also for two suppliers because they don't have enough orders. They don't have good cash flow right now at most importantly they don't know when things go back to normal so they're trying to keep everything but it's very very important for settlers to be on top of everything the production time the pricing at payment terms One of the most important thing is the logistics Right now when FBI? Amazon USA is not allowing people to create shipments. Except the you know. The the baby products are essentials. Like cleaning stuff so most of the people even if they have product ready China they cannot create labels ask the factory put the labels on the carpet so they cannot really do the ship

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