Shandong banking-logistics deal afoot for payment collections

JINAN Modern Logistics Association and Jinan Commercial Bank jointly launched "Bank Cargo Payment Collection" service, the first of its kind in China, Xinhua reported.

The service was introduced to 12 pilot logistics companies in Jinan in the first stage and will be used by more companies in the future, the report said.

Currently cargo payment of shippers is usually collected by logistics companies and returned to shippers in cash. However, shippers and logistics companies using payment in cash were hit with payment losses and theft, the report said.

While the entire process of new payment collection service with bank is non-cash, it effectively eliminates this type of financial loss, the report said.

Consignees approved by China Union Pay, the only credit card organisation in China, can apply for a special bank card to transfer cargo payment to the account of the logistics company, which will then transfer money to shippers within 24 hours, the report said.