Best Services International Freight Ltd.
Shenzhen, China Site Visit
Mr. Wang Chaojun, Managing Director
Mr. Wang Chaofeng, President
Ms. Memory Gao, Sales Manager
Best Services International Freight Ltd. (BSI Freight) was founded in 2000. It is headquartered in Shenzhen with 16 branch offices located in Shanghai, Guangzhou, Beijing, Qingdao, Chengdu, Hong Kong and other main cities in China and has 400 employees.
BSI Freight’s founding business was air freight forwarding. In 2005, it started providing ocean freight forwarding. Currently, BSI Freight has both an NVOCC (Non Vessel Operating Common Carrier) license for ocean freight and Class A license for air freight. Its annual cargo volume is 100,000 ocean TEUs (Twenty-foot Equivalent Units), and around 2,000 tons of air freight (departing from Shenzhen only). For ocean freight, BSI Freight has contracts with main ocean shipping carriers and books space from the carriers directly. For air freight, BSI Freight does its own consolidation in both Shenzhen and Guangzhou airport. Its important for BSI Freight to hold space for its customers in peak season.
In Shenzhen, BSI Freight operates four warehouses located in Yantian port, Shekou port, Shenzhen airport and Shenggang, for its air and ocean shipments. BSI Freight can offer 5-7 days of free storage, which makes it more competitive in handling export business.
Other than freight forwarding, BSI Freight provides express service. It acts as the agent for DHL, FedEx, UPS and other main couriers. This service helps some of its customers needing a total logistics solution.
Although BSI Freight has its own offices in China mainland and Hong Kong, the company doesn’t have its own offices overseas. BSI Freight uses more than 1,000 agents from all over the world. BSI Freight has good experience in managing overseas agents. In turn, the agents bring business opportunities to BSI Freight.
According to Ms. Memory, more than 70% of its shipments are based on FOB (Free on Board) terms and 30% are based on CIF (Cost, Insurance and Freight) terms. This means the overseas agents bring big business opportunities to the company. Air freight accounts for 60% of its gross revenue and ocean freight makes up 40%. Europe is the primary destination served via air freight. In the past, BSI Freight has good growth in air freight and slow growth in ocean freight.
In order to promote market share, BSI Freight set up its own sales offices in Zhongshan, Zhuhai, Dongguan, Chengdu and Changsha. However, it also needs to develop more CIF business in the market.
Sources: A&A Primary Research, http://www.bestservices.com.cn/