Background: Turbo Express International is formerly affiliated to COSCO Shanghai International Freight Co., Ltd. Turbo means ever-growing momentum, which signifies the future for the company. Mr. Xu, is the founder of Turbo Express International.
Q: How is Turbo Express different from before the company restructure?
A: First, it's an independent legal entity. Second, different from that we only worked on Europe-Mediterranean line, we now provide service according to the demand of customer and market.
Q: Your main business area is shipping, right? How about air freight and 3PL?
A: We have both export and import shipping service. Our 3PL service is FOB importing service based on the platform of COSCO. As for air freight, we are discussing with Thai Airways and Air Finland.
Q: What is your company's advantage?
A: We have advantage in Port Sudan and South African Line. Recently, we are discussing a construction project with China State Construction. Our other advantages are importing from Europe, heavy box export to Bangkok, Manila, and Taiwan.
Q: What is the scale of your company?
A: Turbo Express was established in 2006. We have 15 staffs.
Q: Do you have plans to enlarge the scale?
A: We have just built a warehouse in Yiwu, Zhejiang province. Our business scope will increase at a steady pace. Most importantly, we will offer the customers the best service and then grow gradually.
Q: Are your customers mainly from European and Mediterranean area?
A: No, most are African customers. Next would be Middle-East, India and Pakistan. We have much import business from Europe.
Q: Recently, FEFC will adjust CAF&BAF. What's your opinion about this?
A: Shipping companies still have strong influence upon the shipping market, which exert great pressure on freight forwarding companies. In my opinion, it is that the power of shipper's alliance is still not strong enough. Just thinking about the THC, though this problem has been discussed for a long time, it is still not solved.
Q: Will COSCON always give you a better price compared with other freight forwarding companies?
A: It depends. If they are starting a new line and we have a steady amount of cargo to be shipped, we can get better prices.
Q: It's said that it is not easy to do freight forwarding business in Yiwu. How do you think about this?
A: Customers there are not quite reliable. The market is not mature. We built warehouse there, because we want to arrange export transportation, and warehouse is a prerequisite to do this business.
Q: What cargoes do you operate?
A: Light industrial products
Q: What is your company's advantage?
A: We have advantage in Port Sudan and South African Line. Recently, we are discussing a construction project with China State Construction. Our other advantages are importing from Europe, heavy box export to Bangkok, Manila, and Taiwan.
Q: Do you think that the competition is severe in freight forwarding industry in Shanghai?
A: Not exactly, every company has its own way of survival. Though there is competition, there is also opportunity.
Q: In which country do you need overseas agency?
A: Countries we have export business with, like Bangkok, Manila.
Q: You haven't steady partner there, right?
A: Now, we mainly accept CIF cargo; the importance of overseas agency hasn't been fully revealed.
Q: CIF means you have to have cargo on your part, right?
A: Yeah, we have to keep on developing the market.
Q: Turbo Express has been established for two years, is there any impressive story you would like to tell me?
A: It is a bitter and sweet experience to work in freight forwarding industry. Once, The Mitsubishi Company has cargoes of class 5.1 to be exported from Japan to Shanghai. Though they have talked to all the shipping companies in Japan, there is no one that can ship the cargo for them. We talked to COSCO Beijing, hoping that they can make this. But the whole process needs time and discussion. The Japan company showed impatience and distrust during the negotiation process. Finally, through successful negotiation, COSCO Beijing agrees to ship these cargoes. We proved our capability.
Q: Recent years, Chinese government outlined several policies to regulate the logistics sector. How do you think about this? Is this good news for freight forwarders or not?
A: The government mainly encourages the service trade. If Shanghai aims to become a center for international finance and shipping, service trade must be attached more importance. Along with China's entrance into WTO, more HK freight forwarders enter mainland market through CEPA, and Taiwan is also open. So, there is no reason for the government to restrict mainland development.
Q: What do you attribute to your success and that of your company?
A: It's not easy to get success. Difficulty always comes along with success. We have to be patient and work hard. We provide a safe and nice environment for our employees. When they have needs, I try to meet them. We appreciate honesty and constant learning, so as to better meet customers' needs. I often recommend A Letter to Garcia to my employees.
Editor: Sunam Kim
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