Cooperation with PRC is strategically significant and lucrative business for many Ukrainian companies. What allures Ukrainian entrepreneurs in cargo transportation from China? The PRC is one of the key players in the international trade market and ranks one of the first places globally in terms of ease of conducting business. People’s Republic of China is the largest business partner for Ukraine, and the turnover of commodities increasing every year.
Not surprisingly, Chinese goods have long been in the leading position globally. Earlier, Chinese production was associated with low-quality manufactured products, but today they are on a par with European and American manufacturers. In that context, delivery from China has become a highly demanded service as never before, and not all domestic carriers can handle it.
Three types of logistics from China
You can deliver goods from China by air, sea and rail transport. Air carriage has many advantages, although it is the most expensive. It is your best choice to transport urgent delivery goods (short shelf life or high-margin goods). The main advantages are high speed and ease of customs clearance. China has more than 50 international airports that handle cargo. The largest ones are located in Beijing, Guangzhou, Shanghai, Hong Kong, Sanya, Xi’an and Ürümqi.
Delivery of goods from China to Ukraine by sea is more practical than other types of transportation due to its low cost. If delivery speed is not a priority, then sea shipping is a better choice. Ports are located on the East Coast and the South of the country. The largest of them are located in Ningbo, Shanghai, Hong Kong, Chiwan, Dalian and Xingang.
Rail transport is 30-50% more expensive than sea transportation but cheaper than air delivery. Although, it takes more than 20 days to get to Ukraine, which puts it in second place in high priority cases. Railway shipping of Chinese goods appeared on the Ukrainian market not so long ago. Still, it is progressively gaining popularity due to its low tariffs and delivery speed exceeding sea shipping. Among the main advantages of this type of transportation stands load-carrying capacity, the time gap between deliveries, and low rates for long distances deliveries. The downside is that it is not the best choice for free-flowing products and construction materials.
Leaders
The logistics company “Ukr-China Communication,” which has been functioning since 2005, connects Ukrainian and Chinese businessmen. “UCC” is a company with years of successful experience delivering goods from China and organizing business with Chinese manufacturers. The “UCC” team was one of the first in Ukraine to provide cargo transportation services from China, customs broker services for customs clearance of Chinese goods. It has been successfully collaborating with Chinese companies and independently handling work-related matters in both countries. The company has been helping customers in Ukraine for more than 15 years to deliver goods and cargo from China to Ukraine with the utmost professionalism in customs clearance. It also facilitates conditions to start working on the Chinese market and import raw materials and end products without slowing down the development pace without additional labor costs.
According to Vyacheslav Lysenko, the founder of Ukr-China Communication, when he was thinking about the country that would be promising for the future business, the answer was China. After all, China is the fastest-growing market, with its goods filling up all the shelves. This was the beginning of a strong partnership with the Chinese.
“Everyone said that no one would pay for this, but, as the saying goes: Persistence makes all the difference. I chose the first ordering customer, who was, theoretically, ready, and I did not regret it. After that, we started closing the deals and working with new clients. The company started growing as we established our representative offices in Beijing, Ningbo (near Shanghai), and Guangzhou. Territorially we were all over China. Yes, we also made mistakes which cost us more than one million dollars,” – businessman recalls.
Vyacheslav Lysenko says that ordinary citizens, entrepreneurs, and companies are all interested in purchasing goods from China. “Ordinary citizens buy products online for their personal use. It is profitable, cheaper, and thanks to the work of postal operators, they don’t have to wait long for the delivery. Secondly, entrepreneurs risk their capital, take responsibility, invest time, and develop ideas related to the purchase and sale of goods in Ukraine. These people are the generators of new businesses; they form and develop entire spheres of the economy. We are speaking of tens of thousands of small business streams that attract and employ personnel (create jobs, pay taxes, accelerate the turnover of funds) on the path of making their ideas a reality, strengthening the state’s economy. Thirdly, companies that conduct systematic business activities; large production facilities; international companies that either buy components, equipment in China or manufacture their goods based on Chinese factories,” – the businessman says.
The company’s mission is to be a leader in the field of business partnerships with China to search, create, establish, strengthen and control the quality and success of trade and economic relations between Ukraine and China. And this leadership is beyond doubt.
The history of Meest China began in 2015 with 30 boxes on the floor of a subleased warehouse in China, which was advertising on the Taobao forum. Today, Meest China is a leader in the express delivery of postal parcels from China to Ukraine, Russia, and Uzbekistan, with a turnover of 300 tons of shipping per month and more than 30,000 customers. It has its own warehouse in China and Ukraine and continues expanding its delivery-related services for customers.
In 2019, the company joined forces with a veteran cargo carrier from China — “Ukr-China Logistics.” The company owners decided to continue the pursuits of merged companies under one brand — Meest China. Thus, Meest China’s current team has 15 years of experience in the delivery business from China.
One of the company owners and the central inspirer – Vyacheslav Lysenko, is a recognized expert in foreign economic activity and a pioneer in business relations with China.
“We are on first-name terms with China. The company’s board resides in China year-round, works in our Chinese office, and oversees operations. We do the work ourselves and do not rent the capacity of other’s warehouses, as our competitors often do. We hire and train personnel, continually advance warehouse and logistics processes, relying on innovation and manufacturability. That is why we are the only ones on the market who have fully automated the process of processing goods in the warehouse and stock management for the client, both in the mobile application and in the web interface of their personal accounts,” – says Lysenko.
Meest China has ceased to be simply a delivery service. Today it provides a full range of services, thereby making it possible for customers to make secure purchases and deliveries from China. Meest China is an absolute leader in the delivery of parcels and goods from China.
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China is one of the largest economies in the world, and it is a leading global player. Its trade, technological, and investment influence is exhibited in every corner of the planet. Ukraine is no exception: the turnover of commodities between these two states is expanding rapidly. The amount of imports from China is one of the largest, despite thousands of kilometers. All it takes is to choose reliable and seasoned logistics partners.