The ongoing pandemic continues to disrupt international logistics networks with unprecedented severity. Multiple national postal services and global courier giants have announced suspensions or adjustments to China-bound services, sounding alarm bells for cross-border e-commerce sellers worldwide.
Logistics Giants Halt Services as Cross-Border Shipping Faces "Deep Freeze"
On April 24, shockwaves rippled through the global e-commerce community as multiple Western nations including the United States, Canada, Germany, and Japan announced temporary suspensions or modifications to postal and parcel delivery services bound for China. This development threatens delayed shipments, frustrated customers, and significant business disruptions.
The situation presents particular challenges:
- Japan Post: Has suspended EMS, airmail, and sea mail services to mainland China (excluding Hong Kong, Macau, and Taiwan). Accepted international mail will be returned, creating major obstacles for sellers dependent on Japanese markets.
- USPS: Issued consecutive service disruption alerts, with its Global Express Guarantee (GXG) service no longer accepting China-bound shipments. The suspension translates to extended transit times and heightened uncertainty.
- UPS: Implemented emergency service adjustments across Eastern China (including Shanghai, Jiangsu, and Zhejiang) and Southern China (including Guangzhou, Shenzhen, and Dongguan), with complete suspension of pickup, delivery, and self-collection services in some areas.
- DHL: Announced immediate suspension of express services in parts of Eastern China, reflecting the severity of current logistics challenges.
- Canada Post: Issued a yellow alert announcing emergency suspension of parcel and packet services to China, compounding difficulties for Canadian market sellers.
Global Shipping Markets Navigate Turbulent Waters
Beyond parcel services, the global shipping industry faces both challenges and emerging opportunities:
- Hapag-Lloyd's New Route: The carrier will launch its Turkey East Coast Express (TEX) service in mid-May 2022, connecting North America's East Coast with Turkey via a weekly rotation: Mersin - Izmit - Aliaga - Tangier - New York - Norfolk - Savannah - Tangier - Mersin.
- US Port Restrictions: President Joe Biden barred all Russian-affiliated vessels from US ports following Russia's invasion of Ukraine, mirroring earlier EU sanctions and adding geopolitical risks to supply chain instability.
- Qatar Navigation's Strong Performance: Milaha reported Q1 2022 revenues exceeding $250 million, with operating profits reaching $53.2 million and net profits climbing to $98.8 million, demonstrating resilience amid market turbulence.
E-Commerce Payments and Market Realignment
As logistics networks strain, global e-commerce payment systems and market structures undergo significant transformation:
- Global Payments Report: Worldpay's 2022 Global Payments Report analyzing 41 markets revealed global e-commerce transactions surpassed $5.3 trillion in 2021 (14% growth), with mobile devices accounting for 52% of transactions. Projections suggest the market will reach $8.3 trillion by 2025, with Asia-Pacific dominating at $4.33 trillion.
- Amazon's Acquisition: Amazon India completed acquisition of social commerce startup GlowRoad, signaling the platform's push into India's growing market. The Bangalore-based company serves over 6 million sellers with wholesale sourcing and WhatsApp/Facebook sales support.
Strategic Responses for Sellers
Cross-border sellers may consider these adaptation strategies:
- Monitor real-time logistics updates and select optimal shipping channels
- Optimize inventory management to prevent overstocking or shortages
- Diversify market presence to mitigate regional disruptions
- Enhance customer communication regarding delivery delays
- Explore innovative solutions like overseas warehousing and multi-channel fulfillment
- Leverage digital transformation through data analytics and AI optimization
The current logistics crisis presents both challenges and opportunities for cross-border e-commerce businesses. Proactive adaptation and innovation remain critical for maintaining competitive advantage in volatile market conditions.