Saturday, May 3, 2008

Freight Forwarder: Shanghai Panuo International Transportation

via China Freight Forwarders

Shanghai Panuo International Transportation Co., Ltd is a mature freight forwarding company, whose main business is ocean shipping providing both FCL and LCL services. Mr. Zhu Ming, CEO and the founder of Shanghai Panuo, established the company under his own initiative. During the interview, he emphasized that his interests and enthusiasm have played an important role in his career, and also presented his opinions toward the logistics industry.

Adapting to the logistics market

Mr. Zhu said that whether the logistics environment is favorable or not for a freight forwarding company, depends to a certain extent on the company's strength. If it can adapt itself to the environment and make full use of the resources, then the company will do well. As a result, it is important for freight forwarding companies to learn how to adapt and keep up with the changes affecting the logistics market.

The freight forwarding industry has been affected deeply by the revaluation of the Chinese Yuan and a change to the tax rebate laws in June 2007, causing a series of strikes and in turn affecting foreign trade. However, Mr. Zhu thought that since these problems are unavoidable, everyone working in the logistics industry should keep an optimistic attitude in order to develop more business opportunities. For example, the 2008 Olympics in Beijing is a valuable opportunity for logistics companies. Although not all companies can benefit directly from the event, Mr. Zhu said that the Olympics would greatly influence the Chinese logistics market and develop change, creating numerous opportunities.

Unique company culture is important

According to the management of a company, Mr. Zhu said that a mature company should have its own unique company culture, an effective team, and a management system. Within these three factors, company culture is the most important and is the key to a company's competitiveness.

With the help of its company culture, Shanghai Panuo has devoted itself to developing their markets, especially the overseas market, which lets Shanghai Panuo enjoy more resources and also strengthens the development of the company culture. Trying to keep up with the developments in modern logistics has become an important part in each company's culture.

Making full use of e-business

Over the past several years, e-business in China has developed fast and boosted the development of the logistics industry. Since e-business is convenient, effective and has the power to integrated resources, Shanghai Panuo makes full use of e-business and benefits greatly from it. That is also why Mr. Zhu chose to join JCtrans as a GCP member. He believes that the creditable platform provide by JCtrans is the best choice for him and his company, in order to most efficiently develop their overseas market.

Interview with Sergey Ivanov, Personal Relations Manager of AGS Logistics

Q: Mr. Ivanov can you tell me a little about your company first?

A: AGS Logistics is a Russian international logistics provider and we provide a full range of logistics services in Russia and all over the world. We have over 10 years experience in dealing with the international market and good connections with European logistics providers. Now we have the strong intention of building similar connections here in Asia, especially in China, as the trade relations between the two countries are growing from strength to strength.

Q: Do you currently have any offices based here in China?

A: Actually not yet, but we have the intention to open two in the coming year; one here in Shanghai and the other in Guangzhou. After this exhibition we are hoping to establish many contacts, partners and clients in Shanghai and I believe that the office will be up and running here in early spring.

Q: There are many different ways to transport goods between China and Russia, for example by sea, air, railway, or by road. Which will be your preferred method of transportation?

A: Our priority is to cooperate with our clients and to offer them a personalized service, so the exact logistical methods will be tailor made for each individual client depending on their needs.

Q: What is your business strategy in China? Are you going to go it alone or are you looking for Chinese partners?

A: At the moment I think it is more effective to engage in cooperation with different Chinese partners. This is only the beginning of our business here; after all we have only just begun to expand into the Chinese market. We are looking to establish an effective business here in order to provide our clients with a high quality of service. I think in the future it would be much more advantageous for us to work independently, and I think that we will develop our business in this direction.

Q: Can you give me an estimate as to the amount of revenue your company receive from China compared to that obtained from other countries?

A: It's difficult to say, I think it will be a little lower than that of Europe, but the volume of trade on the Chinese market allows us to build a strong business here, even in spite of the fact that the revenue might not be so high.

Q: This is your first time to come to this conference, so can I ask you what you think of it so far?

A: When we were planning our participation in this exhibition, we intended it to be a trial. We wanted to see how easy it would be to establish contacts here in China, and just to see what it would be like without any particular objectives. But over the last few days we have acquired a huge amount of information, and we have received great interest in our company from many companies from China and other parts of the world. So I think that the outcome from attending this event is very positive for us. I think that the next time we attend a logistics exhibition in China we will make a stronger representation of our company, and look to build greater cooperation with more Chinese partners.

Interview with Dominique Estampe, Director of the Institute for Supply Chain Excellence

via air cargo

The Institute for Supply Chain Excellence is located in the southwest of France near Bordeaux. It is one of the top institutes for supply chain in the world and offers a well-respected and effective program. The program is for a master's degree in supply chain management and the duration of the course is one year. All of the lectures are taught in English, so students wishing to enroll need to be proficient in English, and another requirement is that students need to have acquired a bachelor's degree in a relevant field. Suitable degrees include: engineering, economics and international trade.

Mr Estampe described how the structure of the course is organized into two parts. For two days of each week the students will be taught in the classroom with class sizes of around 20, then they will be on placement at a company for a further 2 days. The fifth day of the week is reserved for research and completion of a supply chain management project, which will contribute to the final assessment of the master's degree. Professors are always on hand to offer guidance and assistance to students when undertaking their projects. There is a wide diversity of students at the institute with students attending this world-renowned school from across the globe. The course fees for the year are 14,000 Euros, and an estimated living cost of 900 Euros per month, depending on the standard of living. After graduation the institute can help students to seek employment by offering internships with companies, and also the reputation of the school goes a long way when its graduates are competing for employment.

Interview with Mr. Liu Guojin, Far East Advisor from the Port of Antwerp

via China Freight Forwarding Company

As the second largest port in Europe, Antwerp is a major port for international trade. It is the first industrial and maritime petrochemical cluster in Europe, and is the European market leader in paper, forest products, fresh fruit, steel products, sugar, hazardous chemicals, and coffee.

Mr. Liu said that the purpose for the Port of Antwerp attending the SITL Asia 2007 exhibition in Shanghai was to promote itself in order to attract more cargo to Antwerp. The trade volume between China and Europe has grown rapidly over the past few years, and the amount of cargo transported through the Port of Antwerp reached 7 million TEUs in 2006. Mr. Liu hopes that by promoting the Port of Antwerp in China, he can secure more business and trade opportunities form Chinese companies.

In order to promote the position of Antwerp as the second largest port in Europe, Mr. Liu was looking to raise the reputation of his port in China. At the exhibition he had the opportunity to talk face to face with target customer groups, cargo owners and several large companies. As Antwerp is a base port, it can provide effective services for the market in Mainland China, and Mr. Liu hopes that more companies who export to Europe can choose Antwerp as their base.

Mr. Liu is also building a Chinese website for the Port of Antwerp and plans to publish promotional material aimed at Chinese companies every 3 months. In 2008, Antwerp will also open an office in Shanghai.

As Belgium is a small country, which relies heavily on the profits gained by using the commercial ports, the customs in Antwerp are really flexible. Antwerp is the best European port for handling ability, has many reputable logistics companies using its facilities and has 5.3 million square meters of enclosed warehouses space.

Antwerp has developed a multimodal transportation system extending into Northern and Western Europe, and utilizes inland-river transportation. Antwerp connects onto the river Rhine, which has the capacity to accommodate over 2000 ships. In addition, logistics companies already in cooperation with the Port of Antwerp help with their promotion, and many of them have established good relationships with Chinese companies or have offices and networks based in China.

When cooperating with customs, Antwerp has built a green line, which allows cargo to pass through customs more efficiently, and provides a more effective service for their customers.

There are many countries with different languages in the European Union, so communication can be a problem. However, at the port of Antwerp, most of the staff can speak 4 or 5 different languages such as Dutch, English, French, Chinese, etc. This helps to alleviate this problem and makes Antwerp a truly multilingual port.

As to the changing policies of Belgium caused by the conflicts between the north and south, Mr. Liu says that it will not affect business at the Port of Antwerp very much. The conflicts between the north and south are actually based on the different ideas held by several parties, and they will negotiate the matter by conferences instead of by arms. Besides, the capital of Belgium is located in the centre of the country, so it would be difficult for Belgium to be separated into two different countries. Also as a member of the European Union, any war would be controlled.

Interview with Olivier Girard, Chief Operating Officer of DPD, Direct Parcel Distribution Co., Ltd.

via Freight Forwarding Company

DPD Group is one of the leading courier service providers in Europe. They provide a wide range of products both on the domestic and international markets. With around 500 depots in 38 countries, more than 22,000 employees and 15,000 vehicles, they are truly a global organization. DPD started operations in China in 2006, and now owns 14 branches located in major economic centers across China.

Mr. Girard said that DPD provided door-to-door transportation for the global logistics communities and also offered tailor-made solutions to their clients. Their main mode of transportation is road-based, provided by their fleet of trucks. They are specialized in pickup and delivery of parcels for medium-to-large-volume shippers, even for long distance needs, which is over distances greater than express delivery. They provide track and trace for shipments during transit and offer information and consultation services to their customers.

DPD offers a high quality service in Europe with 98-99% of their deliveries completed successfully on time. Mr. Girard said that they provided the same quality of service here in China and that they would not compromise on service quality in order to compete on price. He also said that they needed to adapt to the Chinese market to sustain company growth and development, but this would be done through improving their mode of operations and finding good solutions with competitive prices, rather than by downgrading their products. In this way they hope to provide an effective and cost efficient service to their local clients.

Mr. Girard said that the advantages of the company over their rivals are reliability, flexibility and the ability to adapt to their customer's needs. They can also offer outstanding value for money especially on large volumes of cargo. He said that they were flexible because they can offer customized solutions to their clients by using agents and other networks, whereas other companies only work within their own networks. Due to the fact that China is so large, it is difficult for one company to provide total coverage for the entire region. DPD currently covers around 90% of the large economic centers in China through their 14 local branches and further use of 21 different agencies. To keep these agencies in line with the reliability and operating procedure offered by DPD, Mr. Girard insists that the flow of information is the key. They keep a close watch over their partners through the tracking of shipments at each step of the supply chain. This not only guarantees their clients quality of service, but also provides them with track and trace services to keep them fully informed as to the location and estimated time of arrival of their shipment.

Monday, April 28, 2008

Interview with Pedro Calvar and Santiago Fernandez from the Business Development Department of TPF

[via China Freight Forwarding Service ]

TPF offers many different services related to the maritime business, including freight forwarding, vessel chartering, warehousing, etc. TPF container terminal is located in the northwest of Spain, and their main purpose for attending this conference is to promote their business. Mr. Calvar said that currently they are acting as freight forwarders in 7 major ports across Spain and that their yearly revenue is approximately 4 million Euros from this market alone. He also stated that the main advantage of his company over others freight forwarders is that TPF has the facilities to deal with many aspects of the chain of supply, including packaging, shipping and warehousing. This means they can provide a cheaper and more efficient service, as they do not need to subcontract to other companies.

Another reason for TPF attending the exhibition is to search for reliable partners in China to assist them in handling the shipments once they reach the Chinese mainland. Mr. Fernandez said that they are also trying to establish relationships with some of the key players in the Chinese shipping lines. He is hoping that they will be interested in using their container terminal as either a transshipping port or as the gateway for the European import and export market. Mr. Calvar also expressed that they were getting positive feedback from some of the big liners and that they were showing interest in the services offered by TPF.

Interview with Marian Mironescu, Head of Promotion and Customer Relations for Constantza Port

[via China Freight ]

Maritime Ports Administration SA Constantza is a National Company under the supervision of the Romanian Ministry of Transport and acts as Port Authority for the Romanian ports of Constantza, Midia and Mangalia. The company's main activities include: administration, maintenance of port infrastructure, port marketing and general development.

Mrs. Mironescu said that their port was under aggressive development and that their main reason for attending the exhibition in Shanghai was to promote their port and to attract more clients. The Port of Constantza already has partnerships with several companies in Shanghai, so this was an opportunity to meet face to face with them and also to meet more freight forwarders and operators of large shipping lines. Currently they do not have any offices in China but they are considering opening one in the coming years.

When asked about the advantages of using the Port of Conatantza, Mrs. Mironescu spoke of their modernized container terminal and how this was a contributing factor to their port having the fastest growth rate, in terms of TEUs being handled, amongst all the ports in the world. Last year they handled over 1 million TEUs and this capacity is expected to double over the next year. They have a very deep draft depth at the port of 20 meters, and by utilizing the Black Sea Canal it is easy to transport shipments into central Europe by boat, which is cheaper than using land transportation. Also many of the other ports in Europe suffer from congestion, which is not a problem at their port so they can offer their clients an alternative.

As Romania only became a member of the European Union a few years ago, Mrs. Mironescu wanted to assure potential clients that the legislation in place at their port is in accordance with the rest of Europe. Therefore there are fewer problems with customs clearance as compared to entering Europe through some other countries ports.