Comment by GJim
2 months ago
> If transporting something from Shenzhen to Franfurt is cheaper than transporting the same thing from Krakow to Thessaloniki - means that EU has fucked up
Ummmm. No.
It means the United Nations Universal Post Union international treaties which effectively provide China with subsidised postage TO THE WORLD (as China is a "developing country") needs urgently updating....... Some of the postage you pay to send parcels within the boarders of your own country is used to subsidise crap posted from China.
UPU reforms were 6 years ago. EU/NA local posts hasn't been subsidizing PRC shipments for awhile. PRC volume vendors dispatching from local warehouses now, they simply sorted out their logistics from mainland to bulk/volume air freight to warehouse to private delivery for last mile to be more efficient than shipping within EU.
Except shipping from China really isn't cheaper than shipping within EU. You just do it from a reasonable hub, or get a third party to handle this for you.
Look at how The Hut Group handles logistics for MyProtein for example.
>You just do it from a reasonable hub
That's not reasonable condition, hence why EU is systemically more expensive.
THG logistics looks like warehouse->dispatch, i.e. it's for vendors of certain size that can prestock at regional warehouse. Private last mile always fast. But it doesn't address first mile to hub. Can a bumfuck workshop in a hamlet deliver in Greece deliver to warehouse in Poland across multiple jurisdictions for peanuts? My understanding is EU first mile is fragmented/slow if you rely on national post and expensive if you rely on private couriers.
PRC has unified mainland logistics, any sized vendor can get any standard sized item, in any quantity and PRC first mile logistics like Cainiao and JD will consolidate for cheap bulk (air)freight to regional hub where last mile is also fast.
PRC mainland->overseas complex is a system with low first mile + low last mile. EU has no integrated cheap first-mile, which raises price on SMEs, i.e. most of producers.
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