Shanghai Jato Logistics Co., Ltd.
Shanghai, China Site Visit
October 6, 2011
Ms. Shen Minrong, Managing Director
Mr. Lu Hong, General Manager
Shanghai Jato Logistics Co., Ltd. (Jato Logistics) was founded in 2000 by Mr. Lu Hong, a former cargo manager for Hainan Airlines. With over 100 employees in six offices, it generated $8 million in gross revenue in 2010. Its profit margin is around 30% annually. It holds a Class A license for domestic air freight forwarding and handles about 15,000 metric tons of domestic air freight annually. High-tech and apparel are the main industries served.
Jato Logistics is a top domestic air freight forwarder in Shanghai. It holds contracts with most local airlines which simplifies the booking process. Most of its domestic air freight shipments are 100 to 1,000 kilograms. Jato Logistics provides door-to-door service including pickup from the shipper’s factory and delivery to consignee’s door. It has established good agent relationships in all destination cities. Besides domestic air freight forwarding, Jato Logistics also has a team to handle air and ocean imports and exports. However, international transportation management is not a big part of its business. For land transport, Jato Logistics provides less-than-truckload freight brokerage.
Jato Logistics owns a warehouse near the Shanghai Hongqiao International Airport. To meet customer demand, it plans on expanding the warehouse to 32,000 square feet in the near future.
A proprietary TMS (transportation management system) is used to run its operations. Customers can track shipments via its website or Jato Logistics uses SMS (short message service) messaging if the customer prefers. Jato Logistics can also provide POD (proof of delivery) for all shipments.
Jato Logistics’ focus is on SMEs (small and medium enterprises) in Shanghai and the Jiangsu province. Due to its experience in Shanghai, Jato Logistics receives domestic air freight business from international transportation managers like DHL. Jato Logistics has partnered with DHL for the past five years handling shipments to over 445 destinations in China. Jato Logistics also works with Kintetsu World Express (KWE). KWE is a logistics provider for Foxconn transporting chips for the iPhone 4. These shipments go from Shenzhen to Shanghai. KWE transfers the air freight to Jato Logistics.
Jato Logistics is an experienced, high quality logistics provider in Shanghai for domestic air freight. In 2008, a logistics provider from the Far East wanted to merge with Jato Logistics, but the deal has been postponed due to economic crisis.
Sources: A&A Primary Research, http://www.jato56.com/