Millennium Logistics (Shenzhen) Ltd., a member of the New Silk Road Network from China, is a significant player in China's logistics industry. Established in 2002, the company has grown substantially, solidifying its position as a key player in freight forwarding and warehousing services.

Join us as we speak with Mr. Russell Wu to delve into the intricacies of operating and thriving in a fiercely competitive market. Millennium Logistics continues to spearhead service innovation, adeptly managing cross-border complexities and anticipating specialised service demands.

In conversation with Mr Russell Wu…

NSRN: Millennium Logistics, founded in 2002, has experienced significant growth, evolving into a prominent company boasting a workforce of over 200 committed employees. Additionally, you maintain offices in most major port cities or logistics hubs. Could you shed some light on the company's origins and its journey thus far?

Russell: The idea of establishing Millennium Logistics first hatched in 2000, a time when the freight forwarding market in China was just starting to take off. In 2002, the idea became a reality, and Millennium Logistics was registered in Hong Kong as a new company with the vision to provide efficient and reliable logistics solutions. In the first 6 years, we mainly focused on domestic Chinese clients, from traders to factories, and our growth was slow but steady. In 2008, we felt the need to establish an entity within mainland China. Hence, Millennium Logistics Shenzhen Ltd came into being and has been our Headquarters ever since. With this in place, we started to double down on the domestic market, with a strong focus on traditional B2B freight services, and the following year, we also ventured into the overseas market through new FOB services.

Entrance to Millennium Logistics Shenzhen Office, Picture Credit: Millennium Logistics (Shenzhen)

Our first major growth spike came in 2012, when our business really started to take off, and we aggressively expanded our overseas sales team. Then, in 2013, recognising the burgeoning potential of eCommerce, we formed a dedicated team for FBA logistics. As Amazon grew, we also began partnering with them as an official FBA logistics partner and have thus far benefited from the exponential growth of this sector.

At the same time, we started expanding our footprint in China, with the Shanghai and Ningbo offices launched in 2009 and our Qingdao and Xiamen offices, respectively, established in 2011 and 2016. We then opened our first overseas branch in Vancouver in 2022, followed by Toronto in 2023, bringing our commitment to excellence to another frontier.

Looking back at our development history, I can say we are one of few companies that has a solid foothold in both traditional freight forwarding and eCommerce logistics. This is not a common combination, as companies usually tend to excel at one or the other, but I think our unique experience and steady pace till now have allowed us to garner sufficient expertise in both. I am proud to say that while we may not be the top-grossing company or market share leader, we have earned a strong reputation.

As you may have noticed, the word “steady” has popped up here and there. This has been our pathway till now, and as such, we have also weathered the turbulence through and after the COVID-19 pandemic. While many companies may have had to use layoffs to reduce costs after the market cooled down post-pandemic, this has not happened at Millennium Logistics.

NSRN: Logistics is a 24/7 job. What drew you to pursue a career in logistics? Could you also provide insights into your role within the company?

Russell: Having graduated as an English major, I landed my first job by chance at a forwarding company, which required daily interactions with overseas agents. Though my first role was in the finance department, this became my entry point into the industry.  I was initially drawn to logistics because of its dynamic and ever-evolving nature, offering constant opportunities to solve intricate problems. The consistent demand for efficient transportation and supply chain solutions further captivated my interest.

I then worked my way through various positions and companies, including as a sales agent for a vessel carrier company, before returning to the freight forwarding world as part of the mid-level management team. In 2012, the opportunity came for me to take a leading position at Millennium Logistics, and I took up the challenge.

Russell Wu Attending an Event on Behalf of Millennium Logistics (Shenzhen), Photo Credit: Millennium Logistics (Shenzhen)

As a shareholder and CEO, my role evolves around strategic decision-making and people management. This can be anything from deciding on the products our company develops to planning for the next 5 years, from hiring the right people to ensuring that our talents are retained. The goal is to drive profitability and sustainability to propel company growth, all while prioritising a customer-centric approach. Last but not least, for me, it has always been important also to walk the talk and lead with example - I am always there with the team.

NSRN: Millennium Logistics offers a diverse range of services covering various aspects of the logistics industry. What would you identify as your core business focus?

Russell: As mentioned briefly before, we have a strong foothold in both eCommerce logistics and traditional freight forwarding. For the eCommerce FBA Logistics side, we were fortunate enough to be one of the early players in the market and have witnessed from the front row the flourishing of the industry. However, it is important to remember that our company started off first and foremost as a traditional freight forwarding business, and this sector within our company has maintained steadfast growth. Our key markets include Europe and the Mediterranean, Northern Africa, the Middle East, India and Pakistan and Southeast Asia.

In short, we provide comprehensive transportation and supply chain solutions. This includes a variety of services, such as freight forwarding, warehousing, distribution, customs clearance, and transportation management. It can be said we are generalists, so competition is fierce and unforgiving; however, what I can say is that we differentiate ourselves with a high reputation and credibility, great service and strong buying power achieved through close partnerships with shipping lines. Also worth mentioning is our internal culture and management structure. We have very formalised management procedures, and we make sure our team consists of highly qualified people.

Shipment carried out by Millennium Logistics (Shenzhen), Photo Credit: Millennium Logistics (Shenzhen)

NSRN: China is very popularly referred to as The World’s Factory, but in recent years other lower cost markets have emerged and China has also invested heavily into transforming to an innovation powerhouse. How do you manage the complexities of cross-border logistics in such a fast-changing environment? Particularly with regards to customs clearance and tariff regulations, and well as new legislations on import and export?

Russell: If we look at the world right now, we can roughly segment the market into the more mature ones such as the US and Europe, and the emerging markets of Asia, Africa and Latin America. Different factors weigh in on the market direction, amongst which cost, political issues and trade barriers play important roles. Lately, we have seen a rise in markets such as Mexico and Vietnam, and of course, we do adjust the focus share we have on each market accordingly; however, I also believe that in some cases, it makes sense to stand one's ground and not flock to the same markets as many others. When a market seems to cool down, certain players leave, and then competition also decreases, so you might have a chance to gain a larger market share. Striking the right balance of resources to allocate to each market is, therefore, like placing the right chess piece on a moving board.

We tackle these complexities through several strategies, with the first being maintaining agility and adaptability in our operations and continuously monitoring market trends and regulatory changes to stay ahead of the curve.

Secondly, partnership is key. We foster strategic partnerships with customs brokers, agents, and regulatory authorities in various regions. This allows us to navigate intricate customs procedures effectively and ensure smooth clearance of goods.

Furthermore, our team undergoes regular training to stay updated on the latest customs regulations, tariff revisions, and legislative updates. This enables us to provide accurate guidance to our clients and minimise disruptions in their supply chains.

Moreover, we offer flexible supply chain solutions tailored to the specific needs of our clients. This enables them to swiftly respond to market dynamics and regulatory shifts while maintaining efficiency in their operations.

Millennium Logistics (Shenzhen) Office Work Space, Photo Credit: Millennium Logistics (Shenzhen)

NSRN: Millennium Logistics operates an FBA Warehouse. Does the company leverage rail transport for e-commerce shipments? Could you share insights into the efficiency and cost-effectiveness of utilising rail for e-commerce logistics operations?

Russell: Yes, Millennium Logistics indeed utilises rail transport for e-commerce shipments as part of our comprehensive logistics services, including our FBA Warehouse operations. Especially since rates are high, and space is lacking on ocean and air freight, leveraging rail transport can be a good alternative for e-commerce logistics, offering several advantages:

• Efficiency and Cost Effectiveness: Rail transport provides a faster alternative to traditional sea freight, significantly reducing transit times between China and Europe. While not as expedited as air freight, it is typically more economical, striking a balance between speed and cost, ensuring timely deliveries for e-commerce shipments.
• Reliability: Over the years, rail transport between China and Europe has become increasingly reliable due to improvements in infrastructure and logistics operations. This reliability is crucial for meeting the demands of e-commerce customers who expect timely delivery of their orders.
• Environmental Sustainability: Rail transport is inherently more environmentally friendly than air freight, emitting fewer emissions per ton-mile. By leveraging rail for e-commerce shipments, we contribute to reducing the carbon footprint of logistics operations, aligning with our commitment to sustainability.

The window of opportunity for rail or road transport opens when there is a large volume of cargo that is urgently needed by the client, but at the same time, airfreight is too costly.  This also means that there is huge elasticity in the demand for rail freight, depending on the current market rate of ocean and air freight. In the end, as with many businesses, for eCommerce companies, controlling the cost of logistics will have an immediate impact on their bottom line, and this is something we need to manage as a logistics provider.

NSRN: As the New Silk Road Network, it's essential to touch upon China's expansive Belt and Road Initiative (BRI). How has Millennium Logistics adapted its logistics services to navigate the intricate web of trade routes? Could you provide insights into the innovative supply chain strategies employed to capitalise on the burgeoning opportunities presented by the evolving Belt and Road corridors?

Russell: The Belt and Road Initiative was presented by China as a multifaceted strategy towards global partnerships and developments. This seems quite lofty at first, but we do see its direct implications and benefits for our business. For example, when ports or other seaway channels have problems, land transport over rail has proved to be a huge success and has helped maintain a functioning supply chain between China and Europe.

Millennium Logistics has adapted its logistics services to effectively navigate the intricate web of trade routes associated with the Belt and Road Initiative. Our efforts include investments in the following areas:

• Multi-modal Transportation: Utilizing sea, air, rail, and road transport to optimise goods movement along the Belt and Road corridors. By leveraging different modes based on factors like transit time and cost, Millennium Logistics offers flexible and efficient solutions to clients.
• Strategic Network Expansion: Strategically expanding its network along the Belt and Road corridors, including establishing new logistics hubs, warehouses, and distribution centres, particularly in emerging markets that are part of the broader spectrum of the Belt and Road economic corridors. We partner with local carriers, customs brokers, and regulatory authorities to ensure compliance and efficiency.
• Technology Integration: Incorporating advanced technologies like blockchain and IoT to enhance visibility, transparency, and efficiency. Real-time data analytics and predictive modelling optimise routing, inventory management, and risk mitigation.
• Risk Management: Implementing robust strategies to mitigate geopolitical, regulatory, and operational risks. This includes thorough risk assessments, contingency plans, and proactive communication with clients and partners.
• Value-added Services: Offering tailored services such as customs clearance assistance, trade finance solutions, and supply chain consulting to navigate regulatory complexities and cultural nuances effectively.

Through these adaptations and strategies, we strive to capitalise on opportunities along the evolving Belt and Road corridors, enabling clients to optimise global trade activities and unlock new growth opportunities in emerging markets.

Group Picture from the 22nd Anniversary Celebrations, Picture Credit: Millennium Logistics (Shenzhen)

NSRN: We noticed the Millennium team's frequent posts about company outings, indicating the importance placed on fostering a positive work environment and team building. Could you elaborate on how you tackle workforce challenges like recruitment, training, and retention, especially considering the rising competition for talent and evolving skill demands? 

Russell: At Millennium Logistics, we firmly believe in the value of fostering a positive work environment and promoting team building. My philosophy in managing people has always been to listen to, understand and respect each other. You need to fully comprehend not just what they have done workwise but also what they could be experiencing in the future and be able to sympathise with them. Everyone will occasionally or frequently come across challenges and hurdles that they might find daunting, and it is our responsibility as the management team to be aware when this happens and provide them with the right guidance and encouragement. We not only work under the same roof, but we also laugh together, move together, and ultimately take responsibility together, no matter pride or fault. I believe that this is the core of gaining and maintaining good talent in a company.

Of course, philosophy aside, we also implement various strategies in our everyday work. Take recruitment as an example; apart from the regular hiring channels, we also prioritise employer branding initiatives to showcase our company culture, values, and career opportunities. Additionally, we utilise employee referrals and forge partnerships with educational institutions to identify promising candidates.

In terms of training, we invest significantly in comprehensive programs aimed at empowering our employees with the skills and knowledge needed to excel in their roles and adapt to the evolving demands of the industry. This includes both on-the-job training and structured learning initiatives such as workshops, seminars, and certifications.

With regard to retention, we prioritise employee satisfaction and well-being by offering competitive compensation packages, performance-based incentives, and benefits such as healthcare, retirement plans, and work-life balance initiatives. We provide opportunities for career development, mentorship, and leadership training to help employees reach their full potential and build long-term careers with us.

Lastly, we recognise the importance of adaptability and flexibility in addressing evolving skill demands and technological advancements in the logistics industry. Therefore, we encourage our employees to embrace lifelong learning, upskill or reskill as needed. We also promote a culture of innovation and creativity, encouraging employees to contribute ideas and solutions that drive business growth and success.

Millennium Logistics (Shenzhen) Team Outing for 20th Anniversary, Picture Credit: Millennium Logistics (Shenzhen)

NSRN: Lastly, Russell, obviously you have done a tremendous role leading the company to the place it is now. What is your philosophy for running the company? And how do you envision the next 5 years of growth to be like for Millennium?

Russell: Thank you for your kind words. While I cannot say my way is the best way, as each company has its own pathway to take, I would say my philosophy centres around these three pillars: a customer-centric focus, fostering a culture of innovation and adaptability, and creating an inclusive and empowering work environment for our people.

As mentioned before, we are a generalist in freight forwarding; we are not a niche player in areas such as temp-controlled or dangerous goods transport. For a generalist player to stand out, you simply need to be really good at your game; this is not achieved through the product because everyone more or less does the same, but through management and operational excellence.

As for the next 5 years, I envision continued expansion and success, especially in terms of our market share. Currently, we have two FBA trade lanes for the eCommerce business: USA and Canada. Our goal is to have an independent and solid third lane; Australia, Saudi Arabia, UAE, and Europe are all strong contenders, but the decision is still ongoing. What I mean by having a solid trade lane is not that we wish to be the number one in that market, but we would like to become a recognised player for those in that market. For our traditional freight forwarding business, we have a steady yet ambitious growth goal for all trade lanes involved.

We will focus on further enhancing our customer-centric approach, embracing innovation, and nurturing our talented team. By staying agile and responsive to market changes, I am confident that we will achieve sustained growth and solidify our position as a leader in the logistics industry.

Millennium Logistics (Shenzhen) Website