NOVA Logistic at the International Conference on Automotive Logistics in Shanghai

On April 16-18, 2024, NOVA Logistic participated in the 2024 International Conference on Automotive Logistics in Shanghai, which was hosted by China Federation of Logistics and Purchasing (CFLP), organized by Automotive Logistics Sub-committee (ALS), and co-organized by several international automotive logistics organizations, such as ECG, VDA, FCAI, and so on. This year's International Conference on Automotive Logistics had about 600 representatives from OEMs, parts suppliers and logistics providers, gathered together to discuss topics such as analysis and forecast of the global automotive market, China's automotive import and export market situation, and the opportunities and challenges of cross-border logistics in the new era of strategy, and to actively enhance the international competitiveness of China's automotive enterprises.

During the meeting, NOVA Logistic actively dialogued with all industry representatives, learned and shared many precious practical experiences and market insights, and contributed its wisdom of years of deep cultivation in the industry to the topic of “China's automobile going to sea”. In view of how to better achieve the goal of cost reduction and efficiency of automobile enterprises, Ms. Lina, CEO of NOVA Logistic, delivered a keynote speech on the topic of “Cost Reduction and Efficiency Improvement: NOVA's Automotive Logistics Solutions Helping China's Automobiles Going to the Sea” at the meeting.

In 2023, the total import and export trade between China and Russia hit a record high, with a year-on-year growth of 26.3%, among which machinery and transportation equipment became the hot-selling products exported from China to Russia. 2023, China's export of transportation equipment to Russia grew at a year-on-year rate of 258.4%, and the share of Chinese automobile brands in the Russian market expanded from 17% to 49% in one year, and they became the top brand in Russia's market share. Lina mentioned, “In 2019, when our office in Russia was ready to purchase a company car, everyone's first choice was a Japanese or Korean brand, and we ended up buying a Mazda. This year, when we needed to buy another car, everyone unanimously chose a Chinese brand car.”

It can be seen that Chinese auto brands have successfully captured the minds of Russian consumers, and the market for Chinese auto exports to Russia presents a blue ocean. Opportunities always go hand in hand with challenges, and the challenges of Chinese automobiles going overseas also come along, in the process of the actual delivery of automobiles from end to end of the whole chain, almost every link is challenged, and Lina introduced the most noteworthy problems in the process of Chinese automobiles going overseas and the solutions provided by NOVA: In the process of loading crates in factories, due to the problems of the box conditions and unqualified loading solutions, a lot of car damages can occur. In order to cope with this situation, NOVAX has upgraded the quality of its products. In order to cope with this situation, NOVA has improved the investment in heavy assets, and at present, the self-managed containers are more than 8,000 TEU, and there are reserve stock outlets in China, Russia, Belarus, Poland, Germany, Kazakhstan and Vietnam, which are able to provide high-quality containers and safe crating services to solve the quality loss problems caused by crate conditions.

Lina describes, “It is through our own assets, combined with efficient operations, that we are able to improve the efficiency of our supply chain and reduce costs for our customers, in order to achieve our goal of reducing costs and increasing efficiency.” In the transportation process, it often happens that the shortage of wagons creates hold-ups. NOVA maintains close cooperation with China Railway Collecting (CRCT), Russian Railways (RZD), Russian Railway Container Corporation (Transcontainer), and Kazakhstan Railway (KTZ), integrating domestic and international high-quality resources, with an average of more than 70 large trains (8,000 TEUs) per month on railroads and more than 104,160 TEUs of containers to be transported in 2023. opening of point to point self-operated container trains to solve the problem of shortage of wagon boards through the resource advantages of overseas sections.

“In addition to opening point-to-point container liner, we can also provide customers with overseas section transportation + container service; NOVA not only does export business, but also import business, importing more than 60 big trains from Russia every month, so we can run our containers and wagons boards very efficiently to achieve import and export cycle matching, which is an important way to realize cost reduction and efficiency increase “.

Automobile logistics is different from ordinary logistics methods, which will generate high stacking fees due to slow collection of cars in overseas warehouses. NOVA has long-term cooperation with more than 100 yards in Russia and continues to invest in heavy asset construction, and has built a 60,000m2+ integrated logistics park and 130,000m2+ automobile yard in Moscow, which can efficiently solve the problems of automobile unloading, stacking and storage, and dispatching, and realize the real sense of cost reduction and efficiency. “At present, the first phase of NOVA's integrated logistics park has been completed, with 24h round-the-clock operation; the automobile yard has completed 30,000m² of hardening and is equipped with the most advanced working equipment and comprehensive security guarantee, which can meet the demand for picking up cars at any time”.

“In this part of customs clearance, we can share a case study: to send a new model from Hefei to Moscow, after the train crossed the border, we learned that we need to carry out inspection at Zabaikalsk Customs. As we all know, Zabaikalsk's crating capacity is very weak, the inspection speed is very slow, and almost 100% will produce cargo damage. In the face of this special situation, most forwarders can not do anything, but NOVA in anticipation of this situation, chose to immediately coordinate with the customs, and after a great deal of effort, and ultimately changed from Zabaikalsk to Moscow's Bereirast station for inspection, because Bereirast is the arrival destination, it is always necessary to unpacking, the customs can be along the way to carry out inspection, and if there is no problem, it can be released directly. In the end, we accomplished the task perfectly, and the customer was so satisfied that he even wrote us a letter of thanks.”

NOVA Logistic, as an international logistics supply chain enterprise integrating international air, sea and rail integrated logistics services, container business, end-to-end services and other business segments, has more than 200 global employees and 30% Russian-speaking employees. NOVA Logistic's customs clearance team consists of senior professionals, who are well versed in local laws and regulations and customs clearance processes. A competent local customs clearance team can provide efficient and convenient customs clearance, unpacking, delivery and other local services to minimize the risk of automobile quality and damage, and sometimes can play an important role.

At the end of the speech, Lina said: In the past, China was just doing OEM, without its own brand, without the right to goods, and naturally without the right to speak on logistics, and could only let the buyer specify the logistics. Nowadays, the situation is reversed, the rise of Chinese brands, going overseas, the right of goods and logistics are in the hands of the Chinese themselves, more and more trade terms from FOB to CIF. the change of China's logistics industry is essentially a microcosm of the growing strength of Chinese brands. NOVA Logistic joins in the construction of China's logistics industry in response to the needs and changes of the times.

Although China's own logistics still has a long way to go, NOVA Logistic has been moving closer to quality full-link solutions, especially the construction of service capabilities at the overseas end, which is the consensus and pain point of many customers. The essence of logistics is to communicate the flow of commerce. During years of exploration in the industry, NOVA Logistic has always adhered to the concept of customer first, the strategy of light-asset operation and core heavy-asset construction, and the policy of global vision and local service to create a faster and better logistics experience for enterprises. NOVA Logistic will continue to explore and innovate relentlessly to provide customers with better quality and more efficient all-link logistics solutions, to reduce costs and increase efficiency for China's automobile overseas, and to help China's automobile brands to ride on the four seas.