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Geoffrey Arend Air CArgo News Thought Leader
   Vol. 13 No. 61    Tuesday July 15, 2014

 

On Dascher Looking East

Dascher Looking East

German logistics group Dachser is looking east in a bid to grow its air freight business.
Edoardo Podesta   The drive to boost Dachser’s air freight business by expanding the network has seen the company develop increased focus on Asia, with both organic expansion and acquisitions on the agenda. But air has always been a core part of the business, according to Edoardo Podestá, managing director, Air & Sea Logistics Asia Pacific for Dachser Far East Ltd.
   “Airfreight has always been one of our strengths and as a company we have a long standing history in this exciting business,” he told FlyingTypers.
   “From the early days when Dachser was the first forwarder to open an airfreight office at Munich Airport in 1951, until today where we are amidst the TOP 20 ranking airfreight forwarders, according to IATA.
   “Our latest moves in Asia were comprised of the opening of PT Dachser in Indonesia in November 2013 and taking 100 percent ownership of our former joint venture in Korea, effective Jan 1st 2014.
   “This has been the latest addition to an ever growing list of established Dachser locations in the Asia Pacific region that already includes China, Hong Kong, Taiwan, Vietnam, India, Thailand, Bangladesh, Singapore, and Malaysia.
   “We have now set our eyes on other markets in Asia and we will continue our network expansion much like we did in the previous years.”
   Podestá admits, however, that Asian markets can be quite daunting, with competition fierce across all sectors and markets, and implications both for airlines and their forwarder customers.
   “The struggle of all airlines for market share is strong and it’s putting a strain on all airlines as far as the level of freight rates is concerned,” he said.
   “We are fighting the decline by offering better and more intelligent solutions to our customers whenever we see the possibility to do so.
   “Plain airport-to-airport businesses have become extremely competitive.
   “We believe this will change, but as of now it is a reality that we, and any other stakeholder in the airfreight industry, has to deal with.
   “Still, due to strategic alliances with our airline partners, solid BSA programs, value added offerings, and the right strategies, we are continuing sustainable growth in our airfreight business.”
   Acccording to Podestá, Dachser managed to expand its air freight business last year despite the strong competition and weak rates.
   “A highlight for us and ultimately our customers was certainly that 2013 was the first full year for us as a global partner of Lufthansa Cargo,” he explained.
   “A market leader in its segment, Lufthansa limits its global partnership program to a very small and exclusive group of members. “This puts Dachser in the front row of globally leading freight forwarders.
   “Above all however it allows us to offer premium airfreight forwarding services to our customers paired with attractive conditions and solutions.”
   Podestá is one of life’s optimists, and he anticipates that air freight markets are due to see improvement in the months ahead.
   “We believe that the downward spiral of airfreight rates, predominantly from Asia to Europe, has come to an end and there are pointers that we can anticipate increasing prices in the foreseeable future,” he said. “This will allow the entire industry to breathe and go back to focusing on service quality and service advancements, rather than the cut-throat competition that was dominating much of the market in recent years.
   “This mid-term will also translate into benefits for shippers and consignees.
   “Besides that, we also see continuous growth in the Intra-Asia airfreight market and we are excited to be in the fortunate position to participate in this trend through our network in Asia and the solid customer base we have built over the years in the region.”
   He said other markets including South America were harder to predict and remained somewhat “volatile and prone to sudden changes,” although he also expects an overall upward trend in the future. But he expects the company’s investment in technology to offer a cutting competitive edge on European outbound lanes.
   “Especially on the Europe outbound side, we have in the recent past invested heavily in screening and X-ray equipment in various locations in Europe in order to respond to the EU regulations EC300/EU185 stipulating more stringent security and screening measures for the European airfreight industry,” he said.
   “This was of course done to have a positive impact on our customers’ businesses.
   “The avoidance of screening bottle necks at major gateways in Europe has just been one of the positive effects we aimed for and eventually realized through these investments.”
SkyKing



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