FEaTuRE Logistics
aging director of Bangkok Flight sought to clear its own backlog. methods.
Services, the leading ground han- Air cargo as a barometer for International retailers are now 7-10 days
dler at Suvarnabhumi, speaking global turnaround: shunning Thailand as sourcing Average waiting
to IFW. “September is usually the Although the surge in demand for location for one main reason - it
time before
peak but this year it was flat, then air cargo capacity is being seen is too hard to get operators here
freight uplift in
October just took off. It’s mostly a barometer or a turnaround in- to change their uncompetitive lo-
aircrafts.
driven by China; there’s no capac- dicator in the global economic gistics and packaging habits. At a
ity anywhere at the moment.” The crisis - it is causing serious im- time where fresh produce exports
US$ 4-6
cargo buildup that started in Oc- pacts among the various indus- to Europe should be peaking,
per kilo
tober has continued with demand tries competing for space. Having there is only limited activity with
Highest rates
spiking over the past weeks. faced appalling financial results the major exporters. By adopting
seen at Bangkok,
over the past 12 to 18 months, air- alternate packaging and improv-
Singapore and
Embargoes on transshipments: lines have increased their freight ing cold-chain logistics, Thai fresh
Chinese Airports
At Bangkok’s Suvarnabhumi rates in an attempt to recover lost produce exporters could lower
Airport, several carriers have revenue, so a deeper problem has their costs of freight and com-
placed embargoes on transship- arisen. pete for limited air cargo capacity
ment cargo in the last two weeks Carriers have focused on in- more effectively.
because Thai origin and destina- creasing volumes of dense high-
tion demand is so great. However, tech cargo (such as electronics) to Not a short-term solution:
according to another report by increase revenue. There has been With air freight it is very difficult
IFW, Thai Airways International’s little or no space available for to book short-term capacity or
cargo business has received a ma- fresh produce which has been tra- to accommodate increased de-
jor boost from China’s air freight ditionally shipped in low-density mand for products. Long-term
capacity squeeze over the last few expanded polystyrene boxes. cargo space is usually acquired
months, with around 60% of the Fresh produce shippers by freight forwarders or shippers
cargo shipped by THAI in the squeezed out: Despite having many months ahead on a contract
pre-Christmas rush to capitalise sufficient and time to make nec- basis, and usually the forecasted
on freight originating in China, essary changes, many Thai fresh demand is unreliable. This results
arriving as belly freight in pas- produce exporters have failed to in highly volatile or ad hoc freight
senger aircraft at Bangkok for on- change their packaging away from pricing during times of increased
Much of China’s
ward shipment to Europe. THAI polystyrene, which could allow demand or where additional space
backlog was sent
by belly freight in
had even stopped accepting local denser loading and more environ- is required.
passenger air crafts to
bookings over the past weeks as it mentally responsible packaging Bangkok.
www.chainaonline.com JANUARY/FEBRUARY 2010 47
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