Zhejiang Hengshun Logistics Co., Ltd.
Ningbo, China Site Visit
March 30, 2016
Mr. Yang Zhongbo, Operation Manager
Zhejiang Hengshun Logistics Co., Ltd was founded in 1998 and is located in Ningbo. It has more than 200 employees. Its founding business was freight forwarding. Today, it is a logistics services provider providing freight forwarding, warehousing and distribution. Its market focus is Zhejiang province.
Hengshun Logistics has an NVOCC (non-vessel operating common carrier) license and signed contracts with the ocean carriers. Its monthly ocean exports cargo volume is nearly 3,000 TEUs (twenty-foot equivalent units). Hengshun Logistics also has a customs broker license which helps in handling import shipments smoothly. Most of the import shipments are based on the term CIF (cost, insurance and freight), so Hengshun Logistics just arranges the import customs clearance, warehousing and distribution.
Hengshun Logistics operates two warehouses in Ningbo. One is a standard warehouse at 6,000 square meters and the other one is 3,000 square meters and used for import shipments monitored by China Customs. It is a common warehouse for full container loading and unloading.
Other than forwarding and warehousing, Hengshun Logistics provides inland transportation and distribution. Its annual cargo volume is over 30,000 tons. All the trucks are under GPS control, and Hengshun Logistics is developing return cargo to fill the empty space. For example, Taobao.com and JD.com will use Hengshun Logistics’ trucking service during the peak season such as Double 11 and Double 12 in China.
Hengshun Logistics has good customer base in Ningbo. Formosa Plastics, Panasonic, Hengyi Group, Yuandong Group and other well-known companies are using its logistics services.
Although Hengshun Logistics is not a large company and doesn’t have a strong network in China, it has good experience in cooperating with big accounts. For instance, Hengshun Logistics helped Panasonic achieve zero inventory stock. With this high qualified service, Hengshun Logistics has long-term cooperation with its customers.
Hengshun Logistics’ shareholders have a joint venture company with the Youngor Group. The JV is for air freight forwarding. If a customer has an export air shipment, Hengshun Logistics is able to handle it and book space from the JV company. Youngor Group is a famous group company in Ningbo, so it’s easy for the JV company to develop air freight in Ningbo.
Hengshun Logistics is not a big company, but it is professional in logistics. With a strong customer base and long-term cooperation with its customers, we trust that Hengshun Logistics has stable development and good growth in the future.
Sources: A&A Primary Research, http://www.hengshun56.com/