Zephyr Logistics Ltd.
Beijing, China Site Visit
October 29, 2012
Mr. Wayne Sun, Managing Director
Beijing-based Zephyr Logistics was founded in 1996 as a project logistics services provider. It has extensive experience in helping multinational companies move factory facilities from overseas to China. Today, Zephyr Logistics provides air and ocean freight forwarding, project logistics and end-to-end services.
Zephyr Logistics has a total of 300 employees working in six offices located in Beijing, Dalian, Qingdao, Shanghai, Shenzhen and Tianjin. It has an NVOCC (non-vessel operating common carrier) license for ocean freight and Class A license for air freight. It has rate contracts with four shipping carriers and signs contracts with airlines. It has its own warehouse for export air cargo handling in the Shanghai Pudong International Airport.
Zephyr Logistics’ main market is between China and North America and Europe. For business in the United States, it focuses on the Midwest since much of its business is around Chicago.
Zephyr Logistics has its own sales team. About 90% of the business is from direct customers and the rest is from small, local logistics companies.
Shanghai is the main office for air exports. Beijing is the main office for ocean imports (cargo imported from Tianjin Port). Its annual cargo volume is 10,000 TEUs (20′ Container/Trailer Equivalent Units) of ocean freight and 25,000 tons of air freight.
For warehousing, Zephyr Logistics has a 1,500 square meter bonded warehouse in Beijing and a 500 square meter bonded warehouse in Shanghai. It rents a warehouse in Beijing for VMI (vendor managed inventory) projects for its customer. However, Zephyr Logistics doesn’t manage the warehouse. Its customer does.
In addition, Zephyr Logistics has 10 trucks in Shanghai for air cargo delivery after customs clearance.
Due to 16 years of logistics experience, Zephyr Logistics has built a solid customer base with well-known companies such as ABB, Siemens and Whirlpool. It has a good team and professional experience working with global companies. Managing Director, Mr. Wayne Sun, is thinking about the following changes:
Help customers tweak their product IDs to increase local sales.
Help build the customer’s brand.
Learn more about customer requirements.
Look for regional or global partners for strategic cooperation.
For example, Zephyr Logistics is developing customers in arts, food and hazardous goods.
Sources: A&A Primary Research, http://www.zephyrlogistics.com/