Freight Forwarder-Introduce Chinese freight forwarders

Compared with the long-range routes freight market, the Asian region’s air cargo market more active. If you can withstand the challenge from road transport, this market will be destined to achieve prosperity and development.

December 2009, DHL Global Forwarding company decided in the first quarter of 2010 in North Asia to increase capacity on European routes. Although Southeast Asia to Europe route capacity has been strained, but DHL is not considered necessary to increase capacity by way of its deployment to supplement the existing capacity. Responsible for the air cargo business in Southeast Asia, senior vice president of Madhav Thapar said: North Asia market and the Southeast Asian market is different from North Asia, the larger and more prone to ups and downs of the situation. And Southeast Asia markets relatively slow growth, but also more stable. Schenker Asia Pacific president Steve Dearnley also said: In contrast, exports to North Asia cargo market is even more clear the backlog. In Southeast Asia, although the capacity has been strained, but we have not seen here as Hong Kong and Shanghai appears that a large number of backlog of goods. Dearnley added that Vietnam is the only one there in the fourth quarter the backlog of goods market.

Vietnam: the rise of electronic manufacturing

Thapar said: We put the Vietnamese market in the region as a growth engine. In recent years, Vietnam’s exports of goods from the traditional clothing, textiles and marine products extended to the electronic and high-tech products. Samsung and Canon and other electronics companies and electronics contract manufacturers in China have established a production base in Vietnam to lead the air cargo market demand.

Perhaps this trend can reflect one of the most obvious example is the establishment of the Vietnam’s first private air cargo companies cargo company. The company won the license last fall, opened in March this year, the use of aircraft is a modified B737-300 cargo plane. The initial phase of the operation focused on the domestic market, after which the carrier intends, in the other four B737-300F aircraft delivered and then expanding our business to international markets.

Vietnam’s flagship carrier in November last year, Vietnam Airlines has also ordered four A380 aircraft and two A350 aircraft orders worth up to 1.8 billion U.S. dollars, which to the outside world that its ever-expanding ambitions as well as passenger services growth expectations.

Shippers and freight forwarders hope that the current market trend will continue. Thapar said: “Last year, a number of carriers flying to Vietnam, opening the route, but then failed to maintain the operation of these routes. However, we see that the passenger business and freight business is growing.

As the electronics manufacturing industry continued to gather the Vietnamese capital Hanoi, suburban Hanoi, and Ho Chi Minh airport as the airport has developed into an international gateway airport. Although the Hanoi airport facilities in the past two or three years has been improved to some extent, enough to cope with the current business growth needs, but Thapar said that the airport’s many facilities will now need further progress, including both airport runways and taxiways , including storage facilities.
By the economic crisis, Vietnam’s air cargo industry’s appetite decreased, but the second quarter of last year, the market demand quickly rebounded. On the other hand, the crisis of the Indonesian market is relatively small, partly because the driving force of economic development in Indonesia more from domestic demand. Indonesia last year to show that the difficulties in the international air cargo sector, an event that Indonesia Garuda (Garuda) decided to temporarily suspend operation of its daily service from Jakarta via Singapore to Ho Chi Minh City flights.

Indonesia: Seafood significant increase in fish exports

At present, Garuda Indonesia, the market tends to be more optimistic about the prospects. Is said to restore the Amsterdam route will be the operating carrier flight operations in Europe the first step in the expansion. The company has sent information on the outside, will be launched in the next few years, flew to Frankfurt, Paris and London routes. The order of 10 B777 aircraft will be delivered in stages starting next year.

Cargo flights for the Indonesian market is also rising. Last year in December, DHL companies in Hong Kong and opened a direct route between Surabaya, 4 flights per week. TNT companies launched last summer, the route from Singapore to Borneo, the use of the model is B737F cargo plane.

From Indonesia’s main export products by air to mainly perishable products, but shipments of electronic products has also increased. According to the outgoing president of Singapore Airlines Cargo Goh Choon Phong introduced, in addition to tuna and other fish and tropical fruit, the Singapore Airlines Cargo transportation of goods shipped to Europe and America also includes a camera products and to the Philippines in DVD player.

As the lack of international direct flights, a large part of the Indonesian export products by air transhipment through Singapore. Similarly, Singapore Airlines Cargo carriage of cargo, and from Southeast Asian countries of transit goods occupy a high proportion. Of course, the economic crisis also led to Changi International Airport and transfer cargo volume declined. Thapar believes that as long as the demand for restoration of Southeast Asia’s air cargo growth rate is not fast, neighboring countries of Singapore’s existing aviation capacity will be able to absorb more exports, thus reducing pressure on the Singapore airport transfer.

Singapore: hands ready

Singapore Airlines Cargo currently has significant improvement in operating conditions. In the second quarter of fiscal year 2009-2010, the carrier of cargo dropped by 15.4%, revenues declined by 41.6%. In the third quarter (on December 31, 2009 ends), their income has shrunk to 9.3% decline, freight traffic fell 0.3%, an operating profit of 40 million Singapore dollars (28 million U.S. dollars), marking the Singapore Airlines Cargo the company become profitable again. A year ago, the loss amounted to 46 million Singapore dollars (32 million U.S. dollars). In the third quarter, Singapore Airlines achieved a total net income of 403.7 million Singapore dollars (283.8 million U.S. dollars), is the company’s performance over the past two years, the best quarter. Although the performance of Singapore Airlines Cargo has significantly increased, especially in North America and Europe, the most obvious long-range routes business performance, but Goh have only cautiously optimistic. He said: Although it seems the most difficult period is over, and the market demand in recent months there have been increasing signs, however, whether the cargo rebound will continue this trend, but certainly not now.

For Singapore Airlines in this well-known airlines in Southeast Asia, this means that deployment capacity to continue to adopt flexible measures. Goh said: Singapore Airlines Cargo will continue to take a variety of flexible adjustment of flights and capacity management, so to match capacity with demand. At the same time, we will continue to re-route planning, in order to improve efficiency. In addition, he said: We will continue to focus on emerging markets, looking for growth and sales opportunities and to explore more of the charter business, for example, museums, motor transport and special motorsport-related transportation business.

Singapore Airlines Cargo was launched last year, flew to Dakar, Nairobi and Atlanta freight routes, these routes have been relatively smooth progress of operations; however, flew to South America had opened the route was not so successful, after a few months in operation forced to give up.

Perishable goods, air cargo transport will be the Singapore company intends to focus in the near future the development of a business. This plan is also with the Singapore Airport Terminal Services (Singapore Airport Terminal Services) ready before the end of this year the first match of perishable cargo handling center.

According to shipping agents said, although when large-scale electronics manufacturing into the island when compared to the small business base, but the growth of Singapore’s economic recovery is very good, better development of the air cargo industry in Thailand. Thailand’s aviation industry should not only deal with economic crisis, we must respond to the Bangkok airport in 2008, was once forced to leave after the closure of the follow-up effects. Thapar said: This incident resulted in customer confidence in the Thai market decline. In the short term, the development of Thailand’s air transport industry will largely depend on the stability of Thailand. However, as Thailand’s flagship air carrier of Thailand and Thailand is currently the company does not seem intimidated by this situation, the company announced that in preparation to enter the whole cargo transportation market. Outside the company’s management has hinted that wish to purchase a large wide-body freighter capacity. Currently, it has signed an agreement with the U.S. Southern Airlines to buy the two B777 freighter aircraft class. However, freight forwarders but does not feel excited. Thai Airways for the entire cargo business, Dearnley said: We are still waiting to see, I do not want to do speculation.

Malaysia: Two-driven air and land

Neighbor as Thai Airways, Malaysian Airlines Cargo Freighter for their future business has been a bit vague. Management suggested it from Air Atlanta Icelandic (Air Atlanta Icelandic) leased 747-200F cargo plane after the expiry, would like to purchase more advanced freighter capacity, there may be A330 or 747-400.

As the basis of Malaysia’s electronics industry is more abundant, and therefore also by the economic crisis is more serious, but freight operators for the coming year more optimistic prospects. Schenker company developed for the Malaysian market this year a huge growth strategy. Similarly, in October last year, TNT entered the airport in Penang, also announced that, like three years, its revenue in the Malaysian market could triple.

In Malaysia, Johor, freight operators a great confidence. Malaysia Airlines Cargo in September last year opened at Senai airport to fly to Tokyo flights weekly intervals. Airport management side is the airport ground handling services company plans to lengthen the airport’s runway to 3,800 meters, while extending taxiway and the construction of an annual cargo handling capacity of 80,000 tons of cargo terminal. Senai airport ground handling services company in September last year also set up a branch near the airport to develop a specialized area of 2,700 acres of high-tech park plans to commence in spring 2010. The Hi-Tech Park will be mainly used for the development of aviation and information technology industry, but it also welcomed the investors invest in the park to construct the medical, energy and automotive industries.

Thapar said: Johor, Penang and Kuala Lumpur will become the third largest gateway airport after. Malaysia existing hub airports may worry about the future of the competitors, but even more worrying is that they may come from a different transport modes of road transport competition.

In the past two years, TNT has expanded its large-scale company in the region, truck transportation network, including routes to China. Other operators are also moving in that direction. DHL company in August last year between China and Vietnam launched cross-border truck transportation services. In contrast, Schenker’s action is relatively slow. Dearnley said: We have just found a full-time staff to engage in the business. He said road transport in order to become a real competitor, may also need some time. He said: I think that the current road transport market is not so great, this is a long-term trends. Road transport infrastructure remains a challenge. In addition, in transit, you must replace the container. In the long term, truck transport is likely to play a greater role, particularly air carriers are the focus of operations from North America and Europe, and long-range route operations to the trade routes within Asia.

China: China – ASEAN Free Trade Area pull

For a long time, people expected that the traffic within the region will grow more than Asian – North American routes and Asia – Europe market traffic routes; in the economic crisis after the intra-Asian traffic has become more prominent, North America and European demand for imports is expected to decline for some time. Thapar confirmed that: we do see, transport operators now pay more attention to intra-Asian market business.

Although the integration process among ASEAN member countries than it is generally expected to be slow, but the process still logistics operators are regarded as a right direction and to be welcomed. For the same reason, the entry into force on January 1 of the ASEAN – China free trade agreement will also promote regional traffic growth. Although no one think that this would be a sudden rapid growth, but Goh said: China – ASEAN Free Trade Chief 19 million consumers, GDP close to 6 trillion, the international trade 4.5 trillion. Terms of population, is the world’s largest free trade zone; by economy of scale basis, ranked third in the world. The freight forwarding industry, the China – ASEAN free trade area of the cargo is likely to be drastic increase. The volume of trade between China and ASEAN will be strong growth momentum.

However, Goh did not think that Singapore Airlines Cargo trucks would pose a particular threat. He said: the rise of ground transportation is not a threat, on the contrary, Singapore’s regional hub will be further strengthened, particularly from Thailand, Vietnam, Cambodia and Malaysia in terms of trucks transporting goods.