Qingdao TianHeng International Logistics

Hazardous Chemicals, Bulk & Project Extras

Qingdao, China¹ Site Visit

December 15, 2010

By

Eric Xiang

Key Personnel:

David Kuang, General Manager

Jet Zhao, Overseas Manager

Founded in 2000, Qingdao TianHeng International Logistics (TianHeng) is a first-class, Chinese authorized freight forwarder.  It handles 48,000 TEUs (20' trailer equivalent units) a year and some air freight.  It is particularly interesting because of its specializations.  TianHeng handles:

• Dangerous goods including hazardous chemical materials.  (Major customers are China Petroleum & Chemical  and China Minmetals.)

• Bulk materials

• Project logistics

TianHeng is a key provider of CIF (cost, insurance and freight to the ship's rail) services through the Qingdao Port.  It is an authorized NVOCC (non-vessel operating common carrier) holding contracts with APL, CMA, MSC, NYK and other container ship companies.  About 25% of the 48,000 TEUs it handles annually, are destined to the U.S.  Intra-Asian and European shipments are the majority.  In addition, it has a customs bonded warehouse at the Qingdao Liuting International Airport.

First-Class Freight Forwarder License

NVOCC License

David Kuang, the general manager of TianHeng, is aggressive in marketing and sales.  The sales focus is on local area customers and Kuang is the key contact for the major ones.  Key customers are in Qingdao, Shandong, Anhui, Hebei, and Dalian.

Kuang has three teams running TianHeng.  They include the VIP (key account) team, sales team, and overseas team.  The sales team focuses on medium-sized accounts while the VIP team hunts for additional large accounts.

TianHeng can be expected to expand and improve its U.S. pipeline and management over the next couple of years.

¹Qingdao is a port city with 7.5 million people.  It's located in the Shandong Province about 300 air miles north of Shanghai.

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