| Freight forwarding as a well-established industry stays at the cutting edge of international trade, in particular connection with international transportation. However, it is still relatively new in the service sector in China which mushroomed since the country's reform and opening policy two decades ago. The level of its importance in the national economic development has witnessed an increasing attention; a subject of tense negotiation during China's entry process for WTO membership with regards to China' commitment to GATS (General Agreement Trade in Services).China's commitment to WTO has proven to be a double-blade sword for this industry, i.e. it provides broad opportunities while at the same time brings about enormous challenges. In view of this reality, a candid research as how to boost this industry in the face of the increasing competitive panorama has both theoretical and practical significance.This thesis begins with transaction cost as its theory base since transaction cost plays a pivotal role not only in the formation of enterprise, but also in defining the borderline and their interdependence between the market and the enterprise. This theory is applied not only to explain the cause of the freight forwarders' existence ,but also to analysis the size, cost, capacity of the freight market and surveillance of their changes in the context.In views of the above theory, the opportunities for this industry after China's accession to WTO lies in the potential market will enlarge and the possibilities of reducing or saving the transaction cost will raise . First, with the improvement in the foreign trade environment, dramatic increase in the volume of import and export will lead to vast demand for the freight forwarding sendee, which is probably the biggest opportunity. Secondly, fierce competition will result in a massive restructuring for the domestic freight forwarders - to breakup, to integrate, divest and conglomerate. The trend is obvious: economies of scale will emerge in the industry. Third!), it will offer a good opportunity for domestic freight forwarders to gain management expertise from their foreign counterparts, which will shorten the learning curve in the entire industry. Fourthly, it conforms with the law of specialization through the transformation of traditional business to "Third Party Logistics" (TPL). Finally, a fair and orderly freight market is conducive to the healthy growth of this industry.Meanwhile, subsequent challenges for the industry are multi-folds. Market liberalization will definitely usher in a large number of potential competitors. At least in the short run, the market share for Chinese freight forwarders will be threatened from various fronts by the ongoing foreign participation. The risk is also embedded by the fact that multinationals will dominate the market after the phase-out period committed by Chinese government within the GATS. It is likely that a number of small and medium-sized freight forwarders will be driven out of the market, hence this will bring about the violent vibration of borderline between the market and enterprise. It is also noteworthy that the talents from state owned enterprises (SOEs) will be drained to foreign corporations operating in China.The thesis comes to a conclusion that the challenges is a bit more than the opportunities in the light of impact on the industry after China's accession to WTO. in order to quicken the industry's development, above all is to reform the administrative system , it is necessary to adjust the direction next, the freight forwarding should follow a path of "grasping the big, and releasing the small." in answer to the guideline set by Chinese central government in rejuvenating SOEs, Large freight forwarders will have to go for scale operation and cultivate an extensive service network so as to gain a firm foothold in the position of TPL suppliers. On the other hand, competition does not mean a dead end for the small and medium-sized freight forwarders. The tunnel light for them would be aiming... |
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