Freight Forwarder

[via China Freight]


Qingdao Honortrans International Logistics Co., Ltd was founded in 2004, and now has already grown into a mature logistics company with a worldwide network. In the interview, Mr. Liu discusses the development and culture of his company, and shares with us his experience in the logistics industry.

Choosing the core of your business

As one of the most important cities in Shandong, which is the shipping center in northern China, Qingdao has its own unique characteristics. Its agriculture, seafood, chemical and textile products are famous throughout the country, and its trade with Japan and Korea is prospering. However, compared with other large cities in the south of China, such as Shanghai and Shenzhen, the operations and management of logistics companies in Qingdao are not as developed. Qingdao Honortrans started out as a branch of another logistics company, and after trading successfully for several years broke away from its parent company. This meant that it already had some human resources and capital when it was founded.

Mr. Liu decided the development direction of Honortrans according to these factors:

1. Develop a strong international network. Most of the exported cargo from China is nominated cargo, so by strengthening their international network Qingdao Honortrans will increase its chances of handling this cargo and improve its ability as an international supplier.

2. Launch special services. Its hazardous shipping service and second-hand container selling and leasing service are among the best in Qingdao. Their sale of containers and special container shipping services are now very reputable.

3. Select main shipping lines. When Qingdao Honortrans was founded, Mr. Liu chose the Middle East, Southeast Asia and Euro/Med shipping lines as its main routes, and devoted the company to developing them.


Honesty and quality come first

Mr. Liu always emphasizes one point to his staff: honesty. He thinks that honesty is even more important than the ability of the staff. In the culture of Qingdao Honortrans, the first is teamwork, the second is study, and the third is honesty. As a result, the company has gained an excellent reputation in Qingdao and throughout China.


Besides honesty, Mr. Liu also pays a lot of attentions to the quality of service. In order to keep long-term relationship with customers, he and his staff abide by three points:

1. Service is most important. Qingdao Honortrans asks its staff to optimize their services by improving their own ability and paying attention to detail in order to provide all-round services.

2. Build a strict service system. Every staff member has to offer standard services according to the company's system.

3. Customers come first. The staff of Qingdao Honortrans should treat their customers honestly, help them to avoid risks and help to solve any of their problems.


Staff are the most important treasure

The brain drain is one of the hottest topics in the logistics industry, and it is created by the characteristics of the Chinese market. The logistics industry in China developed later then those in some western countries, and as a result there are many deficiencies in its human resources, salary, management and other areas. The number of logistics companies in China is approaching a saturation point so many companies are uncertain about their future and therefore have no long-term plans. This makes it difficult for them to train and retain staff, In order to minimize the brain drain, Mr. Liu built an effective system for managing the company's human resources:

1. When choosing staff, Mr. Liu insists that honesty should come first.

2. Qingdao Honortrans provides a secure environment for its staff to study and grow.

3. Compared with other logistics companies, Qingdao Honortrans offers higher salaries, and the salary of every employee will increase by at least 200 RMB per month every year. There is a reasonable system in place that provides rewards and penalties. As a result, the company has many staff who have worked there for many years, which isn't the case for many other companies.

4. In order to retain the staff with high ability, the company gives them shares in the company to raise their income and show them that the company values them.

Suggestions to newly formed companies

Having worked in the logistics industry for many years, Mr. Liu offers some suggestions on how to establish new logistics companies.

1. Honesty is always the most important factor for a company no matter whether it is new or well developed.

2. Pay more attention to the promotion of the company's image. A long time is needed in order to establish a branch. As a result, any new company needs to build a long-term plan for their promotion. This will save much more time and money in the future.

3. Decide on the core of the company's business. Never try to offer every service possible in the logistics industry. Try to find the most important part for the company and develop it.

4. Work hard and grow fast. The logistics industry in China is not as developed as those in western countries. Only those who can grow fast will catch up with the development of the international logistics industry.

[via China Freight Service]

It has been said that Mr. Shang Xiao Yong CEO of Dalian Epoch International Freight Co., Ltd is a logistics expert ahead of his time, and it was our great pleasure to have the chance to interview him. He gave us a deep impression of his knowledge of the logistics industry, but remained humble at all times.

The pursue of development

Dalian Epoch International Freight Co., Ltd started out 10 years ago as a trading company with a team of only 10 people. Since then it has expanded and developed into a freight forwarding company based at the port in Dalian, China, with a strong integrated network. It can provide a fast and cost effective freight forwarding service due to its cooperation with many shipping companies. Mr. Shang said: "During our development phase, we never encountered a period of unbalance; we always remained stable, even when faced with difficulties like the rise in fuel prices, a fall in freight or fierce competition. In my opinion, our success is due to our strong management, development strategy and hard work from the whole team."

Staff is the key factor of a successful freight forwarding company

Mr. Shang kept a smile throughout the interview, even when faced with some difficult questions.

The logistics industry is continuing to develop but a lack of experts in the industry is causing a problem. This problem is manly due to the increased use of e-business and the logistics industry is not the only one affected by this new development. Currently, many of the experts in the logistics sector are not adapting quickly enough to be able to keep up with the use of this new technology, and many staff that have been brought into the logistics field with a background in software engineering are not yet familiar with the logistics industry. This means that the logistics industry is well in need of trained staff with integrated skills.

Mr. Shang said: "The experience and ability of our staff is very important because staff are the foundation of any company. Employing personnel who already have experience in the industry is always our first choice, but not always possible. In order to train members of staff without adequate work experience we have developed relationships with some market leading logistics companies. We have established a procedure to send members of staff to these companies to learn not only about their management system and how they use software to effectively manage their business, but also to learn about methods being utilized at the forefront of the logistics industry. At present, our employees only spend a short period of time training in these companies, but with continued cooperation and communication we are hoping to extend this period."

Information and modern logistics

Modern logistics is focused on improving efficiency, reducing cost, and satisfying the customers' demands. Information handling has become a vital part of modern logistics, and one of the main goals of logistics companies to establish effective information systems.

Mr. Shang said that the traditional sales procedures in the logistics industry are either by selling over the phone or by talking face to face, but the development of e-business has brought along online logistics, which is more effective and costs efficient. Currently, he is upgrading the company's website so it can be viewed in English and Japanese as well as Chinese (the address of the website is www.dlepoch.com ). Although it is expensive to upgrade their website, Mr. Shang believes that it is worth the money and will help the company to establish their brand name in the future.

The value of your brand

Many newly formed logistics companies pay little attention to the marketing and establishment of their brand. However, brand name are playing an increasingly important role in fighting against the competition by showing the company's strength, culture, reputation, service quality, etc. As a result, every logistics company has to adapt itself to the way of modern day logistics.

In order to promote the company, Mr. Shang advertises it on Alibaba and other reputable websites, and also joined the WCA. It takes a long time for him to establish the company's brand name, and Mr. Shang said that the first thing he has to do is to update his way of thinking to catch up with the development of the modern logistics industry. This is also the most important step for other Chinese freight forwarders as they try to establish their brand names.

[via China Freight Service]

In recent years the Chinese freight forwarding industry has been growing at a fast rate due to new policies introduced by the government. The freight forwarding industry in Tianjin, a coastal city with the largest artificial harbor in China, contributes a lot to the development of international trade. Trans-world International Freight Forwarding Co., Ltd is one of the most influential freight forwarding companies in Tianjin, which has a firm belief in "Honesty is the foundation; providing effective services is the key to success". In the interview, Mrs. Jin Ying, CEO of Trans-world International Freight Forwarding Co., Ltd, introduced her company and the logistics industry in Tianjin.

Freight forwarding companies are affected deeply by the environment around them. It can provide them with many opportunities, assist in the growth of their networks and produce more specialized service providers. But on the other hand, it can also present them with challenges, such as the increased transparency of the market, which is leading to fierce competition between companies. As a professional international transportation company, Trans-world has developed a good company culture and operational management structure, in order to establish its brand and provide effective door-to-door services for its customers. Mrs. Jin also revealed that she has always opposed the cutthroat competition in the industry, which continues to cause many difficulties for freight forwarding companies.

In the logistics industry of today, the market in Tianjin has its own advantages and disadvantages. Tianjin is a costal city on the Bohai Sea, and is only a 2-hour bus journey from Beijing. This has contributed to its importance in both politics and the economy. The government in Tianjin strongly encourages foreign trade, and this has been to the great benefit of local freight forwarding companies. However, the logistics industry in Tianjin is still in its development phase, and the competition is really fierce. In addition the rules and regulations relating to the logistics field are insufficient to keep it running smoothly, and Mrs. Jin hopes that the government can act quickly to resolve this situation.

Mrs. Jin also said that the 2008 Olympic games in Beijing will provide a valuable opportunity for the logistics industry in Tianjin and throughout China. During the Olympics, lots of equipment, supplies and commodities will need transporting to Beijing, which will require high quality services and development of the current logistics industry. This is a great opportunity and challenge for freight forwarding companies in Beijing, Tianjin and other cities within China. Trans-world has to seize this opportunity and develop itself in the process.

At the end of the interview, Mrs. Jin said that the recent development of the Binhai New District gave her the enthusiasm to start her own business, and that Tianjin has already given Trans-world many opportunities, and. Although the logistics industry in Tianjin is still in a process of development, Trans-world will remain a trustworthy freight forwarding company offering professional services.

[via China Freight]

Company Profile

C.T. Freight was established in 1981 by Clive Thomas, who is owner and CEO of the company. They are the largest independent freight forwarder in Australia and have branch offices across Australia in Sydney, Brisbane, Melbourne, Perth, Adelaide and Cairns, as well as branches in New Zealand, Singapore, and Los Angeles. They offer all facets of International Forwarding and Logistics, for both import and export, as well as 3PL services, Warehousing and Distribution. They own freezers and coolroom facilities at each office and operate freight terminals at Sidney and Melbourne, which can provide all-round services to sea and air freight forwarders. C.T. Freight is a top five airfreight IATA agent in Australia, was ranked third in the 2006 year result and spent over $34 million US with IATA in 2007 alone.

C.T. Freight and the Australia Air Industry

Air transport accounts for around 50% of C.T. Freight's total income and they are number one with airlines such as Emirates and British Airways. The majority of the air cargo they deal with is perishable goods, but they also handle every other kind of freight including hazardous and project cargoes. At present they are involved in forwarding project air cargo from Australia to Zambia in Africa, and Louisiana in the USA. Their business is very diverse and they can handle any air cargo to and from Australia.

The Australian & Chinese Freight Forwarding Market

The Australian freight forwarding market is more mature than the Chinese market, as it has developed over the last 100 years, whereas the Chinese freight forwarding market realistically began to develop only 20 years ago. The volume of cargo being shipped from china to the rest of the world is much greater than that from Australia, but this is to do with the difference in population. Even though Australian is about 85% of the size of China, there are only around 21 million people living there. In other words, the population of the whole of Australia is about the same as the population in Shenzhen or Shanghai.

The cooperation between China and Australia is very strong and it's getting stronger every year. The resent meeting between the Australian Prime Minister and the Chinese President can only strengthen this relationship. China has been very important to the Australian economy and despite the large difference in population, and Australia is ranked the seventh largest trading partner with China. The Australian economy is growing at a faster rate than any other western country, and this is directly attributed to the business relationship between the two countries. Mr. Wood's reason for coming to China was to meet his agents and partners face to face, in order to find out each others needs, learn from each other, and come up with solutions on how to create even more business.

[via China Freight]

Shenzhen Senbang International Freight Co., Ltd, which was established in 1999, is one of the first None Vessel Operating Common Carriers (NVOCC) in China granted by the ministry of Communications. After years of operation, Senbang has developed into a Third-party International Logistics Corporation. It has been awarded the titles of "Shenzhen Creditable Freight Forwarding Company", "Chinese Top 100 International Logistics Company and Top 50 Ocean Shipping Company" and "Shenzhen Key Logistics Company". During the interview, Mr. Su Dan analyzes the success of Senbang, and presents his opinions toward the 3PL industry and e-business.

Company strategy and staff make Senbang a success

Mr. Su said that the company strategy has played the most important role in the development of Senbang over the past 10 years. The Management Program is the guideline for all the staff, which is dedicated to justice, honesty, and equity. As a result, Senbang provides a secure working environment for its staff, who all follow the slogan on its website www.sbichina.com; " Work hard and enjoy life".

In the heavily competitive logistics market in China, many freight forwarding companies pay too much attention to profit and ignore the working environment and growth of their staff. Mr. Su said that people in the freight forwarding industry face much more pressure than those in many other industries. In order to minimize this pressure, Senbang tries its best to provide a comfortable environment for them. Senbang has no strict principles, such as wearing formal clothes in the company, etc. Besides, it provides high salaries and standard welfare for its staff according to the laws in China, such as insurance, holidays, etc. Although this costs the company more, Mr. Song Gongyou, CEO of Senbang, said that Senbang not only targets on profit, but also pays much attention to offering opportunities to young people in order to sustain the growth of their business and showcase their ability. With the efforts of all the staff, Senbang is confident of realizing their dream to "Build a company with over 100-year history".

3PL is not only a fashion

Third party logistics has become the trend for the development of modern logistics. However, most of the traditional logistics companies do not recognize the signification of 3PL and its effect on the logistics industry when they are trying to enter this market. In traditional logistics, the registered capital, capital assets, number of employees, etc. are the standards used to estimate the strength of a logistics company. Mr. Su said that 3PL is the supply chain practice where one or more logistics functions of a firm are outsourced to a 3PL provider. As a result, logistics companies can provide all-round services effectively, including organization, management, adjustment, etc. and reduce the costs.

Senbang insists on 3PL and puts a lot of resources into training staff and establishing their information systems. In order to maximize their efficiency and profit, they have established nearly 20 branches and offices across China, and have developed a strong agency network covering many important international ports.