NVD Asia: The new booking agency for medium-sized companies

Although Spedition Dörrenhaus has traditionally come from road haulage, in recent decades it has developed into an all-round logistics company. Today, trucking accounts for up to 15 percent of its sales. The majority is generated in the sea and air freight sector, reports Lars Dörrenhaus, managing director of Spedition Dörrenhaus. When he joined the company in the mid-1990s, the focus on Asian imports began and has gradually developed since then. Its core competencies lie in logistics services for industry, trade and for large online retailers. Dörrenhaus maps out the entire supply chain for its customers.

This year - on the occasion of the 50th anniversary of the family business - followed the next development step for the forwarder from Velbert in North Rhine-Westphalia. "The decision to build something ourselves in Asia was prompted by the fact that our partners there were selling or had to quit due to financial problems. And because we did not want to work with 10 small Chinese service providers, we decided at the beginning of this year to set up our own company.

Collaboration with Neele-Vat

Dörrenhaus wanted to take this step with a strong partner. The choice fell on Neele-Vat. The Dutch logistics company had previously acquired a stake in Spedition Dörrenhaus and had also been working successfully and in confidence with Spedition Dörrenhaus for decades. Therefore, it did not take long for the two parties to agree and decide in early 2021 to establish their own freight forwarder in Asia. However, it must be a completely independent company: "NVD Asia is not a service provider working exclusively for Neele-Vat or us, but a neutral booking agent targeting forwarding companies worldwide that do not open their own branch in Asia, but still want to ship 2,000 to 3,000 containers," says Dörrenhaus. The activities of Dörrenhaus and Neele-Vat account for up to a quarter of NVD Asia's total sales.

Shares divided equally

The start-up is already working for companies around the world. Most of these medium-sized customers simply do not have sufficient transshipment volumes in Asia, making it hardly possible to buy meaningful cargo space, Dörrenhaus explains: "We have about 100,000 to 150,000 containers annually at sea and another 3,000 on rail and are so we can buy cheaper, which we in turn pass on to our partners." The amount of handling or booking fees depends on whether or not additional features such as Track & Trace are used. NVD Asia also offers air freight services.

The shares in NVD Asia are divided equally between the two partner companies. But local management has also acquired a small share. "In the past, we have always done it this way. This way, all parties have the greatest possible interest in ensuring that the company grows and operates healthily," explains Cuno Vat, general manager at Neele-Vat. For now, the intention is to continue to grow only organically and not through acquisitions, Vat adds and explains: "We prefer to find good managers and open other Asian countries with our own local branches."

More agile than the greats

The advantage over the very large freight forwarders is the agility of the Asian booking agent, which paid off especially during the pandemic due to the constantly changing demands and constant shortage of cargo space. True to the motto: Necessity is the mother of invention. "In Kazakhstan, we chartered our own ships, carried out our own land transports via the New Silk Road or transported goods in combined transport by rail," says Denis Kronenbitter, general manager of NVD Asia.

In addition, there are an enormous number of cancellations, changes, bottlenecks or problems that always require personal involvement. This impacts workflows: "Two years ago, a file for container transport from Shanghai to Europe had to be handled an average of six times and the container was on its way. Today we are talking about the same file, but it has to be touched 27 times."

The shortage of skilled workers is also well felt in Asia. "Logistics is not that sexy anymore," says Kronenbitter. In addition, there are major seasonal fluctuations, especially in China. Between October and April he finds no work at all, but in summer it is easier. Many Chinese would currently rather pursue the dream of making millions as an influencer than have a real job. One difference from Europe is the work ethic. "If the management here walks away from the front and is committed, the employees follow.

Major expansion plans

That NVD Asia depends exclusively on locals was clear from the beginning: "We don't want to be a foreign company in Asia. We want to be an Asian company with Western European management. Therefore, we rely only on local partners and employees," Kronenbitter emphasizes. Of the 120 employees in China, only two are non-Asians, one of whom is him, Kronenbitter says. NVD Asia has now opened eight branches in Asia.

More markets will open this year. First, Taiwan, Vietnam and Cambodia. Thailand, Malaysia and Indonesia will follow. Further west than Myanmar, however, there will be no more branches. Kronenbitter: "We really want to be a purely Asian booking agent and have no interest in going to the Middle East, for example. We would also be too close to our partners there.

source: https://www.dvz.de/rubriken/detail/news/nvd-asia-der-neue-buchungsagent-fuer-den-mittelstand.html