The Dörrenhaus forwarding company traditionally comes from road freight transport, but has developed into an all-round logistics provider over the past decades. Today the truck sector accounts for a maximum of 15 percent of sales. The majority is generated in the sea and air freight business, reports Lars Dörrenhaus, managing director of the Dörrenhaus forwarding company. When he joined the company in the mid-1990s, the focus on Asian imports began and has been gradually developed further since then. The core competencies lie in logistics services for industry, retail and large online retailers. Dörrenhaus maps the entire supply chain for its customers.

This year - on the 50th anniversary of the family business - the next development step took place for the freight forwarder from Velbert in North Rhine-Westphalia. “The decision to build something ourselves in Asia was driven by the fact that our partners there either sold out or had to stop business due to financial problems. And because we didn’t want to work with 10 small Chinese service providers, we decided at the beginning of the year to set up our own company with a closed IT system,” explains Dörrenhaus. His company was able to use the connections it had built up over two decades of business in Asia.

Partnership with Neele Vat

Dörrenhaus wanted to take this step with a strong partner. The choice fell on Neele Vat Logistics. The Dutch logistics company had previously acquired a stake in the Dörrenhaus forwarding company and has been working successfully and trustingly with the Dörrenhaus forwarding company for decades. So it didn't take long until both parties agreed and decided to set up their own freight forwarder in Asia at the beginning of 2021.

However, it should be a completely independent company: “NVD Asia is not a service provider that works exclusively for Neele Vat or us, but rather a neutral booking agent that addresses forwarding companies worldwide that do not open their own offices in Asia. but still want to ship 2,000 to 3,000 containers,” says Dörrenhaus. Dörrenhaus and Neele Vat's business accounts for a maximum of a quarter of NVD Asia's total sales.

Shares divided equally

The start-up already works for companies around the world. Most of these medium-sized customers simply have too few throughput volumes in Asia, so that it is hardly possible to purchase cargo space in a worthwhile way, explains Dörrenhaus: “We have around 100,000 to 150,000 containers at sea and another 3,000 by rail per year which allows us to buy cheaper and pass it on to our partners.” The amount of the handling or booking fee depends on whether you use additional features such as Track & Trance. NVD Asia also offers services in air freight.

The shares in NVD Asia are divided equally between the two partner companies. But the local management also acquired a small share. “We have always handled it that way in the past. This means that all parties have the greatest possible interest in the company growing and operating healthily,” explains Cuno Vat, Managing Director at Neele Vat Logistics. The initial plan is to continue to grow only organically and not through acquisitions, adds Vat and explains: “We prefer to look for good managers and open up other Asian countries through our own local branches.”

More agile than the big ones

The advantage over the big freight forwarders is the agility of the Asian booking agent, which has paid off, particularly during the pandemic, due to the constantly changing requirements and the ongoing shortage of loading space. True to the motto: Necessity is the mother of invention. “We have chartered our own ships, carried out our own land transport on the New Silk Road and also transported goods in combined transport by rail in Kazakhstan,” reports Denis Kronenbitter, Managing Director of NVD Asia.

In addition, there are extremely many cancellations, changes, bottlenecks or problems that always require personal involvement. This affects the workflows: “Two years ago, a file for the container transport from Shanghai to Europe had to be touched an average of six times and the container was on the way. Today we are talking about the same file, which then has to be touched 27 times.”

The shortage of skilled workers is also clearly noticeable in Asia. “Logistics is no longer so sexy,” says Kronenbitter. There are also significant seasonal fluctuations, particularly in China. He doesn't find any workers at all between October and April, but it's easier in the summer. Many Chinese would currently rather pursue the dream of earning millions as an influencer than pursue a real profession. One difference from Europe is the work ethic. “If management is leading the way and is committed, the employees will follow.

Big expansion plans

It was clear from the start that NVD Asia relied exclusively on locals: “We don’t want to be a foreign company in Asia. We want to be an Asian company with Western European management. That’s why we rely exclusively on local partners and employees,” emphasizes Kronenbitter. Of the 120 employees in China Asia, only two are non-Asian - one of them is himself, says Kronenbitter. NVD Asia has now opened eight offices in Asia.

Additional markets are to be opened up this year. First Taiwan, Vietnam and Cambodia. This will be followed by Thailand, Malaysia and Indonesia. However, there will no longer be any branch further west than Myanmar. Kronenbitters. “We really want to be a purely Asian booking agent and for example have no interest in going to the Middle East. We would also get too close to our partners there.

Quote: NVD Asia: The new booking agent for medium-sized businesses – DVZ (German)

There has been a recent surge in Covid 19 cases in Shenzhen, affecting the ports of Yantian and Shekou, as well as neighboring ports Guangzhou and the port of Nansha.

Below is also a translation of the current report from the DVZ:

"

The Suez Canal crisis has not yet been properly digested, but there are already signs of another massive disruption to maritime supply chains. Rising numbers of cases around the southern Chinese metropolis of Shenzhen are leading to severe handling bottlenecks in the ports of Yantian and Shekou as well as in Nansha (in neighbouring Guangzhou). Maersk is talking about delays of up to 14 days. Delivery stops and restrictions for export cargo as well as cancelled ship calls are the order of the day. It is therefore only a matter of time before the wave reaches the ports in Northern Europe. German seaport freight forwarders are therefore already alarmed.

With regard to the situation in China, Frank Huster, Managing Director of the German Freight Forwarding and Logistics Association (DSLV), said at the association's annual press conference on Thursday morning: "We are concerned about this." No data has yet been received that there is a problem. But if the problem continues to develop, there could be another setback in the supply chains.

Lars Jensen, CEO and partner of the consultancy firm Vespucci Maritime, fears that the situation will escalate further. He estimates that the impact will exceed that of the Suez crisis. According to him, Maersk is already referring to 64 ships from the 2M alliance that have to avoid the ports of Yantian and Shekou. One refers to 52 ships from THE Alliance. OOCL cites 26 units and CMA CGM 11 that are affected.

Ship delays at Yantian Port, a deep-water harbour in Shenzhen, have worsened over the past week, according to Project44. Based on its container dwell time data, the US-based supply chain platform provider expects the port to remain congested throughout the month. According to the data, dwell times in Yantian fluctuate greatly. The minimum is one day. The median, i.e. the measured value that lies exactly in the middle of all the individual data, is given by Project44 as almost 18 days for containers waiting to be loaded (as at 7 June).

The authorities in Guangzhou, the industrial city north-west of Shenzhen, have also imposed restrictions on business activities. "Nansha Port will also feel the effects of these restrictions, which will further exacerbate the congestion problem in Yantian," Project44 continues. According to the experts, 47 ships are approaching the port of Yantian as of 7 June. According to the analysis, a third of the ships are already delayed.

"The recent rise in Covid-19 cases in China has led to a shutdown that could drive the already record-breaking cost of shipping goods from China even higher," says Josh Brazil, responsible for marketing at Project44. According to the company, freight costs between China and the US West Coast rose 156 percent last year, while the trade lane between China and the US East Coast saw an increase of 162 percent. Freight prices between China and Northern Europe rose the most, by 535 percent.

Tense situation intensifies

The German Association of Materials Management, Purchasing and Logistics (BME) in Eschborn is concerned about this development. "The pandemic has not yet been defeated and we will have to live with coronavirus for some time to come," says Carsten Knauer, Head of Logistics/SCM at the BME. Further delays or failures in the supply chains will impair the already tense situation on the transport markets. "In the short term, it is hardly possible to find alternative routes for transport from China. Trucks, rail and air freight are already working at full capacity," Knauer continues. The BME continues to advise establishing suppliers in additional markets and regions in the medium and long term in order to diversify the risk of cancellations or delays.

The obstruction will mean additional empty sailings from Yantian to Hong Kong and the US West Coast in June, Project44 predicts. The port's container capacity could be reduced by around 50 percent and there could be restrictions on shipping companies being allowed to release high-value shipping containers. For the trade routes between Asia and Europe, shipping companies have announced that they will no longer call at ports in the north, such as Tianjin and Quindao, citing congestion problems as the reason.

Difficult planning for importers

Nathan Resnick, CEO of the US B2B procurement platform Sourcify, told business channel CNBC that supply chains have been severely impacted by the sudden and severe restrictions. He added that the situation would make it difficult for companies to plan ahead in the coming quarters. "Especially with the holiday season coming up, many large importers are trying to plan their supply chain for Q3 and Q4." When asked which industries are likely to be most affected, he replied: "At the moment in Guangzhou and Guangdong, it is mainly household goods, footwear, consumer electronics and many other types of products." He continued: "These delays at the ports will lead to a further increase in freight rates and this is something we see continuously throughout the year."

The shipping movement data up to the end of May already indicate a slight drop in China's imports and exports compared to the previous month. TheKiel Trade Indicatorof the Kiel Institute for the World Economy (IfW) shows a negative sign for both exports (minus 1.7 percent) and imports (minus 1.0 percent). Vincent Stamer, head of the leading indicator for global trade, said on enquiry that it is not yet possible to make any further statements. He refers to the next update of the figures on 22 June. (sr/cs/rok)

"

If you have any questions or require individual coordination, the Dörrenhaus team is always happy to help.

Your Dörrenhaus team

At the end of August we had already reported about the possibility of loading trucks from China.
In the past few weeks we have already been able to load 15 trucks in China and now deliver them to our customers.
From door to door, including export and import customs clearance, impressive delivery times were achieved:

Wenzhou, CN to zip code 15, Germany = 15 days
Foshan, CN to zip code 47, Netherlands = 15 days
Yiwu, CN to zip code 85, Germany = 14 days
Ningbo, CN to zip code 15, Germany = 15 days

In addition to the short transit time, what should also be emphasized is the great flexibility with which the trucks can be positioned - a clear advantage compared to fixed departures with cut-off times for rail and sea loading.

The trucks have two drivers on the entire route of almost 11,000 kilometers and are equipped with GPS trackers so that permanent monitoring is guaranteed.

Since we expect major capacity bottlenecks on all modes of transport and high freight costs to continue in the coming weeks, this alternative may also be of interest to you.

So don't hesitate to contact us at any time and send your first truck on its way!

Best regards,

Your Dörrenhaus team

In recent weeks, the resumption of global trading activities has led to strong demand for shipping space, particularly in maritime transport from Asia to Europe.
The shipping companies' capacities are currently not sufficient to handle the upcoming volumes in a timely manner. The difficulties are compounded by full ships, rollover risks and the lack of empty equipment.
We ask you to encourage your suppliers to place bookings as quickly as possible.
The earlier the booking is made, the better the chances of obtaining shipping space.
Shipowners will charge a PSS of USD 150/300/300 (20' / 40' / 40'HC) from 1 September 2020 and will also increase freight rates on 1 September.
We are currently still negotiating the final details with the shipowners. However, it should be said that space will be more of an issue in the coming weeks
than the prices to be paid.
We will send you the new instalments for September at the beginning of next week.

If you have any questions, please do not hesitate to contact us