China Container Line Limited (LF Logistics)
Shanghai, China Site Visit
April 10, 2012
Mr. Harry Chang, General Manager
China Container Line Limited (CCL) is a key, licensed NVOCC (non-vessel operating common carrier) in China with 1,500 employees in over 40 offices in China and branch offices in Malaysia, Pakistan, Indonesia and the United States. It also has a Class A license for airfreight. In 2010 it handled 400,000 TEUs (20’ trailer equivalent units) of ocean freight and 3,000 metric tons of airfreight. It mainly handles exports with 34% destined to North America, 28% going to Europe, 20% to the Far East, and 18% going to other regions.
CCL has over 20 contracts with ocean carriers such as Maersk, MSC, CMA CGM, etc. Due to large cargo volume, CCL acts as a booking agent for carriers in local ports in China and other small- to medium-sized third-party logistics providers (3PLs) which book space with CCL directly. The small- to medium-sized 3PLs account for 80% of the cargo volume and the rest is from direct customers. To date, nearly 10,000 3PLs have used its services. Its direct customer base includes key accounts such as Nike, Watsons and Qianjiang Motorcycle.
CCL is not only a freight forwarder, but also a shipping company. It has its own ships for transporting bulk cargo.
In order to match customers’ demands, CCL has 100 owned tractors in Shanghai and 300 tractors it subcontracts to handle containers.
In Ningbo, CCL has a warehouse with 48,000 square meters of warehousing space. Although this helps in operations at the Ningbo Port, warehousing and trucking are not CCL’s business focus.
According to Mr. Chang, ocean freight volume is expected to reach 450,000 TEUs in 2011. This would make CCL’s year-on-year average growth rate 17%. CCL has maintained good financial performance even in the economic crisis.
Sources: A&A Primary Research, https://www.lflogistics.com