Eagle Alliance International Logistics Beijing Co., Ltd.
Beijing, China Site Visit
February 5, 2014
Mr. Andy Zhang, President
Mr. Steven Du, Director – Sales & Marketing
Eagle Alliance International Logistics Beijing Co., Ltd. (EAI Logistics) is primarily an air freight forwarder headquartered in Beijing with branch offices in Langfang, Ningbo, Qingdao, Shanghai, Shenzhen, Tianjin, and a staff of 100.
Its Beijing headquarters office is big; however, its Qingdao, Shanghai, Shenzhen and Tianjin offices aren’t big enough. EAI Logistics will pay more attention to these offices and plans to strengthen its network in China.
EAI Logistics is Class A licensed for air freight. Its primary focus is on its air imports, which accounts for 85% of its cargo volume. Since it doesn’t handle many exports, it uses other local booking agents instead of booking space with carriers directly.
EAI Logistics has its own license for customs declaration. Each year, it handles around 20,000 shipments requiring customs clearance. Its team is very experienced and knowledgeable in customs clearance, which has made EAI Logistics very competitive in the air imports business.
For all of the shipments, EAI Logistics needs agents in the origin ports to arrange for pickup and book the flights. Although EAI Logistics has many agents overseas, most of the business is secured by EAI Logistics in China. The overseas agents don’t contribute much to its annual cargo volume.
EAI Logistics has a solid sales team, pays close attention to service quality, and focuses on small- and medium-sized companies – privately-owned companies in China and multi-national companies. Most shipments handled are of high-tech products. EAI Logistics has experience in handling Hewlett-Packard and Cisco products. The business was not secured from HP and Cisco, but from their dealers.
According to Mr. Steven Du, EAI Logistics is financially secure. Each shipment is around US $5,000, so it’s easy to follow-up on payment. Because of small shipments, EAI Logistics needs to put more efforts on customer and business development. With over 15 years of marketing experience, EAI Logistics has many customers to keep business stable.
In addition, Mr. Steven Du stated that EAI Logistics has good relationships with its current overseas agents, but as mentioned earlier, does not receive much business from them. EAI Logistics would like to find a strong agent in North America or Europe to increase performance. Cargo volume from U.S. accounts for about 40% of its total cargo volume. EAI Logistics is interested in deep cooperation with a medium-sized logistics company.
Focused on air imports and small- and medium-sized companies, especially its focus on small shipments providing quality service and smooth customs clearance, EAI Logistics has a good profit margin in the market. It should expand growth if it can find a key partner overseas.
Sources: A&A Primary Research, http://www.eaifreight.com/