In cross-border logistics, Southeast Asia dedicated routes refer to the channels specifically established for transporting goods between China and Southeast Asian countries. Its operation is somewhat like a relay race, where goods first depart from the seller’s location and are concentratedly transported to specific port cities, such as Pingxiang in Guangxi and Ruili in Yunnan, using domestic transportation methods (like trucks and trains). Here, the goods must go through a series of strict customs clearance procedures, much like students needing to pass an important exam; only when all documents and the condition of the goods meet the regulations can they successfully “clear customs.”

Once cleared, the goods enter the international transportation phase. At this point, there are various transportation methods available. Depending on the characteristics of the goods and the needs of the merchants, options such as sea freight, land transport, or air freight can be chosen. Sea freight is akin to a slow but large vessel capable of carrying a significant amount of cargo, suitable for bulky and heavy items that do not have strict time requirements, such as furniture and building materials. Land transport resembles a flexible off-road vehicle that navigates across land borders, making it a good choice for goods that are close to the border and urgently need to be transported. Air freight, on the other hand, is like a “fighter jet” in the express delivery world, extremely fast and capable of delivering goods to their destination in the shortest time possible, though at a relatively high price, making it suitable for high-value, small-sized, and time-sensitive products like electronics and high-end cosmetics.

After arriving in Southeast Asian countries, the goods still require final delivery, which necessitates local logistics partners to take over and deliver the goods to the buyers.

In recent years, competition in the cross-border logistics market has become increasingly fierce, especially for Southeast Asia dedicated routes, where the price war is in full swing, leading to cost penetration.

Numerous logistics companies have flocked to the Southeast Asian market, significantly increasing the supply of logistics services. It’s like a race track that originally had only a few competitors suddenly being flooded with hundreds or thousands of participants—how could competition not be intense? To attract customers, companies are pulling out all the stops, with price reductions being the most direct method. If you lower your price a little, I’ll lower mine even more, resulting in prices sliding down like a slide.

E-commerce platforms, in order to attract more merchants, also impose certain requirements on logistics services, with price being one of the important considerations. Platforms may collaborate with logistics companies to demand more favorable prices to reduce merchants’ operating costs. In this situation, logistics companies, in order to cooperate with e-commerce platforms and secure more business volume, have no choice but to lower their prices, further intensifying the price war and leading to continuous cost compression.

With the advancement of technology, the digitalization level of the logistics industry has been continuously improving. Some advanced logistics management systems can achieve real-time monitoring and optimized scheduling of the entire transportation process, enhancing transportation efficiency and reducing operating costs. For example, through big data analysis, transportation routes can be reasonably planned to avoid congestion, thereby reducing transportation time and fuel consumption. Additionally, the application of automation equipment has also reduced labor costs. These cost reductions provide logistics companies with more room to lower prices in the price war, resulting in the penetration of costs for Southeast Asia dedicated routes.