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Ecargo Not What It Seems, page-48

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cspro

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05/03/15

21:40

Post #: 14868266
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Originally posted by Sinosong ↑

Ah but the logistics goes hand in hand with the new business. The Lau's think they have discovered a new way.

See when a company comes from a shipping vantage point into the actual clients operations or sales it is a massive leap, especially to go to technology.

The Lau's shipping arm is under siege. You see all their freight contracts with their clients is what's known as prepaid. That means the suppliers all organise the freight in China and the suppliers pay the shipping costs to Australia port. The price of the goods they pay reflects the shipping charges and those shipping charges are paid to the Laus in China.

Companies like China Sea Rates are now making big pushes into the market in Australia and USA, where they save on shipping costs. So many western organisations are saving money by reversing the operation. They then pay the charges in Australia and save $$$$, cutting out the Laus operation unless it is the most viable option.

China itself is helping by now working directly out of China. Shipping lines are now doing contracts from Shanghai to Australia with Australian companies.

The Lau's then make even more profit by sending the shipments to their arm in Australia. C&S Logistics. The double down.

The Laus Rather than jump out and compete with Temando, China Sea Rates or Shyp, have ran to the customer. This tactic works well if you have a CEO like say Carl Hartmann of Temando. Not so the Laus.

Look at some of the presentations of the CEOs I have outlined in this space. They tread a very careful path partnering their clients needs in ecommerce or China or USA. Any over promise and under deliver could massively impact the clients bottom line, image or reputation. And that would be your fault. Hence why the cross over is not good, with the way it is now.

You are saying to these clients we know how to dominate a certain market. In this case e-commerce in China. Especially fashion and Beauty Products. You say this with no experience, knowledge or even keeping up with the market or environment.

Rather than being a supply service you are on the front line. So if ecargo clients don't make what they anticipate in China, who do you think will be blamed?

The Laus have bet the house on this. Hence why I say in twelve months time there will be a situation for a company equipped with technology, shipping and a sound Chinese market knowledge to come in and make a bomb.

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I'm sure you're looking forward to doing the deal in 12 months time then... ;-)

ECG Price at posting: 33.0¢ Sentiment: Hold Disclosure: Held
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Ecargo Not What It Seems, page-48

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