Zhejiang Sunmarr International Transportation Co., Ltd.
Hangzhou, China Site Visit
December 9, 2010
Mr. Henry Cao, Assistant General Manager
Zhejiang Sunmarr International Transportation Co., Ltd. (Sunmarr) is primarily an ocean freight forwarding company. It was founded in 1994 under the name Zhejiang Double Horse International Transportation Co., Ltd. Its headquarters is in Hangzhou with branch offices in Shanghai, Ningbo, Shenzhen, Yiwu, Shaoxing, and Fuyang. It has a staff of 250 and annual gross revenue of $52 million. Its annual cargo volume is 67,000 TEUs (20′ trailer equivalent units) of ocean freight, 200 metric tons of air freight (around 70,000 shipments) and 100,000 cubic meters of bulk freight. Most of the business is FCL (full container load) exports with the main gateways being Ningbo and Shanghai. Forty percent is exported to Europe, thirty percent is exported to North America and the rest is exported to other countries.
Sunmarr holds an NVOCC (non-vessel operating common carrier) license but does not have a Class A license for air freight. Sunmarr also has an ISO:9000 certification. Sunmarr’s subsidiary, Hangzhou Sunmarr Customs Declaration Co., Ltd., has its own customs broker license and operating IT for customs clearance in Hangzhou, Ningbo and Fuyang. Sunmarr has its own IT team which developed its in-house system.
In Ningbo, Sunmarr has a 3,000 square meter warehouse where most of the space is rented out to other 3PLs. In Hangzhou, it has good operations at the Longteng Logistics Park, the port and the airport.
Most of Sunmarr’s business is CIF.¹ Sunmarr developed this business with local shippers in Zhejiang and Jiangsu. Sunmarr plans to establish its own offices in Qingdao, Tianjin, Xiamen, and Dalian by 2012. It also has plans to set up overseas offices in Los Angeles, New York, Dubai and Hamburg.
Sunmarr had an opportunity to develop supply chain financing through a solar purchasing company. Sunmarr helped the customer’s suppliers solve inventory capitalization and handles all the business for these suppliers. Until now, Sunmarr only handled 10% of shipments from these customers. As a result, there’s a good opportunity for Sunmarr to develop additional logistics business in the solar industry. Currently, all shipments go to Europe.
Sunmarr planned to go public in 2008 but decided to hold off because of the U.S. economic crisis.
¹Incoterm – “Cost, Insurance, and Freight” is paid by the shipper to the ship’s rail.
Sources: A&A Primary Research, http://www.sunmarr.com/