Liu Minxia

mllmx@msn.com

SHENZHEN plays an increasingly important role in global supply chains and the city’s economic activities can affect the flows of the world’s supply chains, according to a U.S. digitally enabled freight forwarding unicorn that has been operating in the city for six years.

Flexport, a San Francisco, California-based freight logistics company which considers itself as “the technology platform of global trade,” branched out in Shenzhen in 2016 and opened its first warehouse in China at the Yantian Port area two years later. The company is attracted to the city’s geographical location as well as its technology and industrial chain advantages, Henry Ko, managing director of Flexport Asia, told Shenzhen Daily.

“We’ve seen Shenzhen’s potential and strength as a port city for international trade and we’ve witnessed its vitality,” Ko said. “These are the factors that encouraged us to establish a presence in the city.”

Flexport’s Shenzhen office, which houses its first research and development (R&D) center in Asia, currently employs more than 300, the largest head count among all Flexport offices apart from its San Francisco headquarters.

The company has managed to continue normal operations when Shenzhen assumed a work-from-home mode in mid-March for pandemic prevention and control, and the weeklong disruption’s impact on the company’s business was well under control thanks to technological prowess, according to Ko.

“Our platform is powered by cloud and digitalization technologies. It has enabled us to respond to changes like that in a very timely manner,” Ko said, adding that their Shenzhen office optimized freight transportation by utilizing ports in other areas in China.

Flexport is a technology disruptor founded in 2013 with the goal of modernizing the freight industry and now serves over 10,000 clients and suppliers in 112 countries and regions. Its founder and CEO, Ryan Petersen, made headlines last year when he offered concrete suggestions for alleviating the backlogs at California ports and easing supply chain issues. California Governor Gavin Newsom implemented some of his suggestions and several U.S. industry insiders proclaimed Petersen’s suggestions had “saved Christmas.”

“While the pandemic continues to disrupt manufacturing and supply chains, the world has recognized the importance of building resilient supply chains,” Ko said. “Companies with a resilient supply chain can make correct decisions when facing emergencies and uncertainties to mitigate the impact and boost efficiency.”

With extensive experience in the global supply chain industry, Ko previously held several senior positions at multinational logistics companies including DHL and SF Express.The pandemic will bring opportunities to the freight logistics sector if it can upgrade operations with high technologies to address pandemic-induced chaos, Ko said.

Ko also sees opportunities for freight forwarders like Flexport in the development of the Guangdong-Hong Kong-Macao Greater Bay Area and the rise of cross-border e-commerce. “Our success in the Chinese market has confirmed our confidence in the future development,” he said, adding that the company remains committed to contributing to Shenzhen’s international trade growth.