JET Freight Global Co., Ltd.
Shanghai, China Site Visit
Mr. Drake Hu, Managing Director
JET Freight Global Co., Ltd. is an ocean freight forwarder founded in 2003. It is headquartered in Shanghai with branch offices in Tianjin, Qingdao, Nanjing, Xiamen, Guangzhou, Shenzhen and Ningbo and an overseas office in Chicago. It has 80 employees total.
JET Freight Global has an NVOCC (non-vessel operating common carrier) license for ocean freight forwarding. The cargo mainly goes to North America, Europe (mainly France and Germany), Southeast Asia, the Far East, and Taiwan. For business between China and U.S., JET Freight Global mainly uses a booking agent’s contract for exports and contracts with the carrier for imports. JET Freight Global uses 30 overseas agents to support its operations. Most of the business handled is door-to-door. Eighty percent of the business is under CIF (cost, insurance, and freight) terms and 20 percent is under FOB (free on board) terms. That means the overseas agents bring business to JET Freight Global and contribute 20% of the cargo volume only.
According to Mr. Drake Hu, JET Freight Global has professional experience in handling hazardous goods such as chemical products and semiconductors. It handles the trucking, customs clearance, shipping and distribution. JET Freight Global also has experience in handling auto parts from China to the U.S., Mexico, and Europe.
In the U.S., JET Freight Global has an owned office in Chicago supporting the company in developing business in the U.S. market. Business in the U.S. has been growing nicely. JET Freight Global is looking for a local partner to expand market share with.
Since ocean freight is its main business and JET Freight Global is not strong in air freight, its annual air freight volume is only about 500 tons. It does not have a Class A license for air freight. However, JET Freight Global does have plans to expand its air freight business. It should have a Class A license mid-2014 and plans to assemble an air freight team. Its target is to handle 300 to 400 tons of air freight monthly. At that time, JET Freight Global will book space from the airlines directly and have the ability to get profit from air freight shipments.
BASF, Delphi, Shanghai Hua Hong NEC Electronics, and Taiwan Semiconductor Mfg. Co. are some of its customers. As for local Chinese customers, JET Freight Global is developing clients in Garments, Luxury Goods, Pine and Trading.
Different than most local Chinese logistics companies, JET Freight Global does not accept shipments from other small logistics companies. Its focus is on direct customers only. However, if it starts its new air freight team, it will have to accept some air freight from other local logistics companies in order to balance space and cost.
Drake Hu and two other guys are company shareholders. They have good cooperation. They know the company’s weakness is its sales team as JET Freight Global only has one salesperson currently. They are leading the company with the right strategy and management.
Sources: A&A Primary Research, http://www.jetfreight.com.cn/