KWE Thailand has become the leading air exporter in Thailand, and will also be No. 1 in sea freight

24/12/2018

Samurai Asia Editorial Department

KWE-Kintetsu World Express (Thailand)

CEO Yasuyuki Tani

KWE-Kintetsu World Express (Thailand) (KWE Thailand), the Thai subsidiary of Kintetsu World Express, Inc., has been making progress in strengthening its air and sea freight forwarding services. As a result, KWE Thailand has become the air export leader in Thailand, according to recently announced market performance results for 2017 (the Cargo Account Settlement Systems (CASS) ranking). The company has been making steady progress toward its goal of entering the top ten in sea freight in 2018, and in October 2018 had achieved a ranking of 7th in market share in sea freight.

No. 1 in air exports in 2

The Cass ranking for KWE Thailand’s air export business was 13th in 2013, 11th in 2014, 6th in 2015, and 2nd in 2016, with the company reaching the top position in 2017. This result was achieved through the company’s efforts to increase the volume of TPEB (Trans Pacific East Bound (Asia to North America)) cargo, which occurred amidst a drive to strengthen forwarding services throughout the KWE Group. These results were bolstered through the BKK Gateway Service, which was established in 2015 to provide gateway services in Bangkok. KWE Thailand is aiming to maintain its top position in 2018 as well by increasing long-distance TPEB transport and BKK Gateway results.

The BKK Gateway Service operates by gathering cargo from various ASEAN countries in Bangkok for large-volume aggregated transport to North America. The company has made progress in engaging in tie-ups with airlines, so three-day transport to North America can be assured even during periods such the peak season, when space can be difficult to secure. With an average monthly cargo handling volume of 500-600 tons, this service is geared toward specific customers.

The rates for freight originating in SE Asia bound for North America are lower compared to that originating in China or Hong Kong, but they are still high from the point of view of the shipper. As a result of the recent surge in the movement of goods from Japan, shippers, as well as airlines and forwarders, have been finding it difficult to apportion space for cargo from SE Asia, where rates are relatively low. Therefore, the BKK Gateway Service is getting high marks for its ability to offer reliable, stable space.

BKK Gateway Service transport se asia cao using to USA

Reaching the top in sea freight as well- 7th position in October 2018

According to figures from US company Datamyne, KWE has been steadily rising in prominence in sea freight, going from the 38th position in 2015 to 34th in 2016 and 18th in 2017. The company has been accumulating results since beginning its campaign for North America-bound cargo in 2016, and reached 7th in sea freight in October 2018 on a non-consolidated basis. The company will continue to strive to expand its market share.

Focus on Chinese clients

While 70% of KWE’s air and sea cargo clients are Japanese, the company is building relationships with non-Japanese clients, such as those from the US, Europe, and Asia. A facet of this is the focus on trends among Chinese clients.

The Thai government has created a plan for the development of the Eastern Economic Corridor (EEC), which is east of Bangkok and spans Chachoengsao, Chonburi and Rayong Provinces. This plan is central to its “Thailand 4.0” policy for industrial development. There is much attention focused on infrastructure improvement plans, such as the connection of three airports- Suvarnabhumi, Don Mueang, and U-Tapao- by rail, as well as the expansion of the Laem Chabang Port, and KWE Thailand believes it is necessary to consider the development of the zone southeast of Bangkok as a future operational base. Also, the BOI (Thai Board of Investment) has accepted many projects involving China and Hong Kong over the coming two years. Therefore, KWE Thailand sees the need to approach Chinese clients, and is strengthening ties with Chinese companies in anticipation of the situation 3 to 5 years in the future.

For information concerning KWE air cargo transport services, please contact the relevant

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