Chongqing - Ran Jian broke into the shipping industry as a challenger of conventional practice. Over the past eight years, he took a seemingly unorthodox business strategy and created a company with a maximized annual revenue of 880 million yuan from scratch.

Education at a maritime university and working experience in Shanghai laid the cornerstone of his entrepreneurial concepts, which were based on professionalism and open-mindedness. In 2013, Ran returned to Chongqing and joined a shipping company, where he succeeded in “a textbook client pursuit.”

It was a French-headquartered company with factories in Shanghai and Sichuan. The company had a top-10 shipping volume in the Sichuan-Chongqing region.

Ran shared that after visiting their Sichuan factory and consistently emailing a key contact for six months, he finally got a reply. When they agreed to an online meeting, Ran suggested meeting in person. He then flew to Paris, had discussions, convinced another decision-maker, and successfully closed the deal.

In addition to his logistics solution, Ran noted that the client selected him because of his persistence and sincerity.

In 2016, Ran resigned due to conceptual disagreement and started his own business, Chongqing PO Shipping. He soon gained a foothold in the market as his French client chose him over his former employer.

Ran recalled that the shipping industry in Chongqing was quite different in the past. Companies were more conservative about reducing prices, while he focused less on maximizing profits.

Ran likens the international freight market to the futures market, where success depends on accurately predicting market trends and taking risks. Since shipping fees fluctuate, the cost can differ between when a price quote is given and when the shipment occurs.

“Hypothetically, my competitor offers an 8,100-dollar deal, and I estimate the actual cost would be 7,600, so I offer 7,900 dollars to seal the deal and would still gain profit if my prediction comes true,” Ran explained.

Another unconventional decision he made, which his partner initially opposed, resulted in revenue of 880 million yuan in 2021, tripling the amount from 2020. From the early days of his business, Ran has consistently invested in heavy assets, even though the industry has shifted mainly to an asset-light model to reduce fixed costs and increase agility.

Heavy asset availability means more independent operations and more stable services, which can raise customer loyalty. It is an expensive yet worthwhile strategy, Ran said.

Chongqing PO Shipping owns over 130 container trucks, a warehouse, and barges. (Photo/ Chongqing PO Shipping)

During the COVID-19 pandemic, containers were made a highly sought-after product, and the shipping fee soared. “Sending container trucks to secure the accommodation became necessary, even with confirmed container booking,” Ran said. 

Container trucks transport cargo within a port; many companies pay for this service. The company-owned trucks gave his company a competitive edge and helped secure profits.

Apart from over 130 container trucks, Chongqing PO Shipping owns a warehouse and barges. Its global shipping routes reach countries and regions such as Southeast Asia, Australia, Europe, the Middle East, the Americas, and Africa. 

Ran’s ambitious plan includes expanding the business and establishing operational centers in other cities next year. He predicted that only a few industry giants would remain in the market and that new entrants and investment would be crucial for survival.

(The original author is Guo Shuyu from Liangjiang New Area Media Center)