Triple i to boost business on South Korea route

Triple i Logistics Group, a non-asset logistics services provider, expects to carry more cargo between Thailand and South Korea after being recently appointed as a general sales agent of Jeju Air, South Korea’s third largest airline.

“Jeju Air’s route that flies directly from Bangkok to Incheon in the south of Korea, and its positioning as a low-cost airline, are strong points,” Teeranit Isarangkura, managing director of Asia Network International Co, the sales agent business arm of the group, said last week.
“In terms of cargo, air freight rates will not be that sensitive to oil prices.”

This move is part of the group’s strategy to expand its airfreight business by acting as a sales agent for more airlines.

It already serves as a general agent selling cargo space for three airlines – Thai AirAsia, Lan Cargo and Hainan Airlines.

Jeju Airline operates a daily flight from Bangkok with an extension to Osaka in western Japan. Triple i Logistics Group was awarded the right to sell both in- and out-bound cargo space for this route.

After being established by Aekyung Group and Jeju Special Self-Governing Province in 2002, Jeju Air has positioned itself as an international low-cost carrier since 2009. It utilises B737-800 aircraft with 186-189 passenger seats.

Tipp Dalal, group CEO, said that for the Bangkok-Jeju route, national and multinational freight forwarders would be the major target. Their shipments mainly deal with garments and textiles, electronic parts, fresh fruits and vegetables, and cut flowers.

“Samsung and LG are also our clients,” he said.

Jeju Airline would also expand its routes from Incheon to Nagoya in Japan and Tsingtao in China in the second half of this year, he added.

“We target to sell air freight for at least 90 per cent of the total space of an aircraft per sector, depending on passenger and cargo loads,” Teeranit said.

The group also has a unit called Triple i Maritime Agencies Co that serves as a maritime agent for South Korean shipping liner CK Line. It expects at least 1,000 containers a month of sea freight sales after CK Line started sailing its own vessels in May.

Triple i Maritime Agencies is a sales agent for CK Line for routes from Thailand to Vietnam, Hong Kong, China, South Korea, Japan and Russia.

Outbound shipments are led by petrochemicals, paper and electrical products, raw materials for industry, agricultural products, rubber and tapioca.

PVC, resins, metals and auto parts top the inbound shipments.

Tipp said that if the European zone’s debt crisis goes downhill, this would impact on China’s exports, resulting in a decline in transhipments.

“There is no positive sign in the second half,” he said.