Shanghai Aegean Sea Logistics Co., LTD is a logistics corporation approved by Ministry of Commerce of the People’s Republic of China. Mr. Shen Xiaolin is the CEO and founder of it. During the interview, Mr. Shen introduces the foundation and growth of Shanghai Aegean Sea Logistics, and shows his original views towards logistics industry.

Q: Could you introduce the foundation of Shanghai Aegean Sea Logistics Co., LTD briefly?

A: Shanghai Aegean Sea Logistics Co., LTD was founded at 18th, March, 2005. Before its foundation, I had already worked in logistics industry as a space booking agency majoring at Euro/Med lines since 2000. From 2005, the structure of Shanghai Aegean Sea Logistics had some changes and its ocean lines covering Middle East lines, South East Asia lines, Central South America lines, and so on. As I had already accumulated some human and capital resource, Shanghai Aegean Sea Logistics was mature when it was founded.

Q: When you changed the structure of your company, you chose Middle East and South East Asia lines. How do you think about the differences between the ocean lines of those developing countries and Euro/Med ones?

A: The ocean lines of Middle East and South East Asia are smaller, and the ship owners’ operation is also less mature. However, as the Chinese commodities going more and more salable, the demands for Middle East and South East Asia ocean lines are rising rapidly. As the result, we choose to develop in those lines.

Q: You had accumulated enough human resource for Shanghai Aegean Sea Logistics when it was founded, but the brain drain still annoyed lots of logistics managers. What’s your opinion towards it?

A: Human resource is crucial for logistics corporations. The shipping market in Shanghai changed a lot since 2000, and logistics industry has great development year by year. As the demands of human resource are growing too rapidly, good and evil people are both mixed up in logistics industry, which makes logistics managers feel annoying. I bring up all the main force in my company, and once they become capable for their positions, I will try to keep them stay beside me, not only by raising their salary, but also by supporting and trusting them and giving them more promotion opportunities.

Q: Which advantages does Shanghai Aegean Sea Logistics have to make it live and develop in the competitive market in Shanghai even the whole China?

A: The operation of Shanghai Aegean Sea Logistics and its relationship with customers and ship owners have been kept stable. In order to compete with others, for example, my staffs have to be responsible for whatever they do. Besides, financial worker should analyze the credit of customers to minimize the bad loans with the help of sales.

Q: Under the pressure of competition, some freight forwarding companies try to win attract more customers by reducing their price as much as possible, the so-called “red sea strategy”; in the contrary, some companies choose the “blue sea strategy”, developing new market in order to improve its competition ability. Which one do you think is more proper for domestic logistics companies like Shanghai Aegean Sea Logistics?

A: I prefer the second one. It is not a long-term strategy to engage oneself in the price war, I think. Freight forwarding industry is a service industry, so we have to improve our own ability instead of just depending on the price. Only customers appreciate the profit our service brings to them can we have enough space to develop.

Q: In resent year, the arrival of large foreign capital international freight forwarding companies make the competition in domestic logistics industry fiercer and fiercer, especially for traditional international freight forwarding corporations. What are the advantages of foreign capital international freight forwarding companies? Where do local companies have to improve?

A: The advantages of foreign capital international freight forwarding companies lie on the following three aspects. First, they have more experience on management. Second, they make better relationship with other foreign capital companies. Third, they are more easily to win the support of ship owners. Nevertheless, local companies also have their own advantages, because the CIF market has a huge space for them to develop. We have not only to be more professional in our service, but also communicate more with customers to make them more confident to do CIF.

Q: How do you think about the influence internet add to logistics industry? What are the advantages of logistics online compared with traditional logistics? Is there anything it needs to improve?

A: Internet influences logistics industry a lot, because it makes the world smaller and smaller. Logistics online provides a convenient communication platform for logistics companies all over the world, and creates a larger space for traditional logistics industry to develop. I believe logistics industry will not live without internet. As to the disadvantages, I think logistics online have to pay more attention to insure the credit of logistics companies and customers, in order to provide truer and more effective information online.