As cross-border e-commerce continues its global expansion, logistics bottlenecks have emerged as the "Achilles' heel" hindering business growth. Overcrowded overseas warehouses, congested ports, and skyrocketing shipping costs keep online sellers awake at night. In an unexpected move, Loctek—a company best known for its smart adjustable desks—has made a bold decision: to build its own cargo ship.
On January 27, Loctek officially announced a $32.6 million (approximately 207 million yuan) investment to construct an 1,800 TEU container vessel. This represents more than a financial commitment—it's a strategic maneuver to overcome logistics challenges in cross-border e-commerce and secure future supply chain control.
Why Build Ships? Addressing Core Logistics Pain Points
Since 2020, the persistent global pandemic has disrupted international trade, with inefficient overseas port operations creating severe challenges to supply chain security, timeliness, and cost-effectiveness. For cross-border e-commerce businesses, soaring logistics expenses and extended delivery times have significantly impacted user experience and market competitiveness. Loctek recognizes that true global brand expansion requires taking control of supply chain operations.
The company stated that owning or leasing vessels will enhance supply chain security, shorten delivery cycles, improve inventory turnover rates, and ultimately elevate the e-commerce shopping experience. More importantly, this initiative could facilitate more small and medium-sized Chinese brands' overseas expansion by reducing logistics-related operational disruptions, helping them establish stronger global market positions.
Strategic Vision: Integrating Public Overseas Warehouses With First-Mile Shipping
Loctek's shipbuilding plan isn't an impulsive decision but a key component of its integrated "public overseas warehouse + first-mile shipping" strategy. The company has already established public overseas warehouses in the U.S. and Europe, providing storage and distribution services for cross-border e-commerce sellers. The new container vessel will complete the logistics channel from domestic production to overseas warehouses, achieving end-to-end supply chain control.
Implementation and Expected Impact
According to the announcement, Loctek will contract Huanghai Shipbuilding Co., a leading Chinese shipyard, for vessel construction. The 1,800 TEU container ship is scheduled for delivery in Q1 2023 and will be operated by a professional management company. Loctek will make five phased payments according to construction milestones.
The company clarified that the shipbuilding project won't immediately impact current operations. However, long-term benefits include significantly improved supply chain efficiency, reduced transportation costs, enhanced competitiveness, and stronger support for global expansion. Loctek's unconventional approach offers the cross-border e-commerce industry a new paradigm: proactive supply chain control may prove more effective than passive adaptation in today's fiercely competitive market.