Sunday, July 21, 2024
Globalisation offers opportunity for GSSAs

Globalisation offers opportunity for GSSAs

Over the past few years, the Asia Pacific region has experienced robust export growth, driven by factors such as increasing connectivity, technological advancements, and trade agreements. Significant contributors to this growth include China, Japan, South Korea, and emerging economies like Vietnam and India. 

A noticeable shift in global supply chains towards the Asia Pacific region has occurred as companies seek cost efficiencies and access to large consumer markets. This shift has been accelerated by events such as the US-China trade tensions and the  Covid-19 pandemic, prompting businesses to diversify their supply chain networks.

 Additionally, the rapid growth of e-commerce, particularly in China, has fuelled export growth in the region, creating new opportunities for logistics providers to support cross-border trade and last-mile delivery. 

“As the General Sales and Services Agent (GSSA) market evolves, the focus remains on offering value-added services such as sales representation, marketing, customer service, and operational support to enhance the competitiveness of both airlines and cargo agents,” Noor Azizah, ECS Group’s regional manager of Asia, stated.

“Asia’s central position between major trading partners facilitates efficient air cargo transportation. The region’s rapid industrialisation and emerging markets drive up demand for airfreight services. The surge in online retail boosts the need for fast and reliable air cargo delivery. 

“Significant investments in airport infrastructure support the growing demand for airfreight. Established logistics networks ensure the smooth flow of goods through air cargo channels. Regional trade agreements facilitate cross-border trade, enhancing airfreight operations. Supportive government policies promote trade liberalisation and investment in logistics infrastructure. Despite growth, operational costs in Asia remain competitive, attracting airlines and logistics companies. 

“These factors collectively make Asia an attractive and economically strong region for airfreight operations.” 

Diversified operations

The China +1 strategy is significantly impacting the approach of the airfreight/logistics sector in the APAC region by diversifying supply chain options. Companies are increasingly exploring alternative manufacturing and sourcing locations outside of China to mitigate risks such as trade tensions, geopolitical instability, and rising costs. 

This strategy has led to a redistribution of cargo volumes within the APAC region as companies seek to balance their reliance on China with other countries in the region. 

There’s a notable increase in cargo volumes to/from alternative manufacturing hubs like Vietnam, Thailand, Malaysia, and Indonesia as companies pivot their supply chain strategies. While China remains a dominant player in global trade, the China +1 approach is reshaping logistics dynamics and driving changes in airfreight routes, capacities, and demand patterns across the region.

“ECS Group significantly strengthens APAC’s position as a key logistics hub by introducing structured expertise and organisation unmatched in the region,” Azizah explained. 

“Our collaboration with DHL, where we established a hub with 30 dedicated staff in Singapore, exemplifies our commitment to providing specialised logistical support tailored to the unique requirements of each airline partner. 

“This approach not only boosts our partners’ operational efficiencies but also reassures them of their choice in ECS Group as a GSSA that truly understands and caters to their needs in a way that others in the market do not.”

Picture of Edward Hardy

Edward Hardy

Having become a journalist after university, Edward Hardy has been a reporter and editor at some of the world's leading publications and news sites. In 2022, he became Air Cargo Week's Editor. Got news to share? Contact me on Edward.Hardy@AirCargoWeek.com

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