Cargo Logistics (Xiamen) Co., Ltd.
Xiamen, China Site Visit
July 26, 2012
By
Eric Xiang

Key Personnel:
Mr. Stephen Chan, Vice General Manager

Founded in 1999, Cargo Logistics (Xiamen) Co., Ltd. has around 400 employees working in eight offices in China, which include its Xiamen head office and branch offices in Dalian, Fuzhou, Ningbo, Qingdao, Shanghai, Shenzhen and Tianjin. It has overseas offices in Brazil and Madagascar.

Its founding business was ocean freight forwarding. In 2004, it became an NVOCC (non-vessel operating common carrier). Most of its ocean cargo volume is exports. Its annual ocean cargo volume is around 50,000 TEUs (20′ trailer equivalent units) in China (30,000 TEUs in Xiamen). Nearly 60% of its volume comes from direct customers and the rest comes from small, local logistics companies as Cargo Logistics acts as the shipping carriers’ booking agent.

Cargo Logistics is a key NVOCC player from Xiamen to Japan. It has a deep cooperation relationship with Nippon Express Xiamen in handling Dell shipments. Nippon Express is Dell Xiamen’s leading third-party logistics provider (3PL) and Cargo Logistics is Nippon Express’ booking agent in Xiamen coving all of the ocean shipments from Xiamen to Japan.

For airfreight forwarding in China, Cargo Logistics holds a Class A license. It has a good relationship with Korean Air Cargo and Dragonair. Its annual airfreight volume is around 600 tons in Xiamen only. Cargo Logistics continues to develop its airfreight business.

In 2006, Cargo Logistics established an office in Brazil, which has become a strong operation. The business between China and Brazil/South America has grown rapidly, creating many opportunities.

Cargo Logistics is the leading 3PL for well-known brand Prima/Xiamen Overseas Chinese Electronic Co., Ltd. (XOCECO). Xiamen Justsun Trading is also a customer.

Its sister company, Chengfa Logistics (Xiamen) Co., Ltd., was founded in 2006 and provides warehousing, trucking and inland transportation. Chengfa Logistics has 600 employees, a 3,000 square meter warehouse, and offices in Dongguan, Foshan, Fuzhou, Guangzhou, Jinjiang, Quanzhou, Shenzhen, Tianan, Tong’an and Zhangzhou. Its main business is inland transportation between Xiamen and the Guangdong Province.

Cargo Logistics is a key player in Xiamen interested in expanding to provide total supply chain management. To be an integrated supply chain manager, it has a long way to go. We will keep an eye on Cargo Logistics.

Sources: A&A Primary Research, http://www.cargo-logistics.com/