Perfectever Logistics (Ningbo) Co., Ltd.
Ningbo, China Site Visit
February 12, 2014
Mr. Victor Le, President
Mr. Benny Wang, General Manager
Mr. Saber Ying, Project Manager & Key Account Manager
Perfectever Logistics (Ningbo) Co., Ltd. is a local ocean freight forwarder based in the seaport city of Ningbo, Zhejiang Province. Perfectever Logistics is a key player in the Ningbo market and a booking agent in the Ningbo Port for most of the ocean carriers. It has nearly 130 employees.
Perfectever Logistics does not currently have its own offices in other cities but does have dedicated partners in most of the cities/ports in China, so it can handle all shipments from/to China.
Founded in 1995 as an ocean freight forwarder, ocean freight remains its key business today.
Perfectever Logistics is NVOCC (non-vessel operating common carrier) licensed. Its annual ocean freight volume is around 100,000 TEUs (twenty-foot equivalent units). Most of these shipments are exported from China and destined to the Asia Pacific, Europe and North America. Agents are used overseas to support its network. Its business to U.S. has slowed down recently.
According to Mr. Saber Ying, nearly 80% of its ocean freight volume comes from its booking agent service, which means these containers are from other small- and medium-sized logistics companies. This is important for Perfectever as it needs the leverage to negotiate with carriers for ocean freight cost and space control. The rest of its volume comes from direct customers. It has two sales teams. One team handles sales for logistics companies and the other one is for direct customers. Perfectever has a new company named L-Trans Logistics Zhe Jiang Co., Ltd. which is mainly for direct customers.
Although Perfectever Logistics can handle air freight shipments, it does not have a Class A license and uses other booking agents for all air freight shipments.
Perfectever Logistics is managing two warehouses with over 10,000 square meters of space in Ningbo. These warehouses are for all the export shipments that need stuffing, pick/pack, consolidation, etc. Perfectever Logistics has 17 sealed trucks for pickup and delivery. One truck is for bonded goods. In peak season, Perfectever uses trucks or tractors provided by subcontractors. During peak season, it is common to handle more than 50 containers daily.
Although Perfectever Logistics works with many overseas agents, 90% of business it obtains itself and 10% it receives from the agents on FOB (free on board) terms.
Perfectever’s customers’ include Aux Group, Innolux, Midea, and Zhonggao Power Technology. It is handling project logistics for Zhonggao Power Technology on shipments from China to Saudi Arabia. Mr. Saber Ying, in charge of project and key account management, has experience in customer development, operation coordination, and agents performance management.
Perfectever Logistics has plans to build its own network in China base ports. It prefers to merge with a local forwarder. It’s also keeping an eye on the U.S. market to find a qualified agent/partner soon.
With substantial cargo volume and strong support from carriers, Perfectever Logistics will have a good development if it can build a “perfect” network. With its ample experience in key account development, we foresee smooth growth for Perfectever Logistics in the future.
Sources: A&A Primary Research, http://www.nbtsl.com/