FedEx unit to open freight-forwarding office in Thailand

Despite its high logistics costs, Thailand is still considered a key market for the company because of its strong economic growth and good geographic location for shipping products regionally. The office will work with others worldwide, especially in Vietnam and Singapore, to fulfil clients’ demand for their worldwide supply chains, said Joseph Frank, vice president of FedEx Trade Networks Asia. 

It is the 17th office in the Asia-Pacific region for the company, which gained a foothold in Thailand 10 and half years ago. The new facility will help strengthen its role in the region, especially by providing an ocean delivery service called FedEx International Direct Priority Ocean. This will allow shipments from Thailand to reach US ports directly. 

At this time of uncertainty in the world economy, he said the firm would keep opening new offices internationally, including in some Western countries that have faced economic decline.

The freight-forwarding market in Thailand has increased over the past couple of years and its growth is expected to continue. In 2011, the market was valued at about US$2.03 billion (Bt60.6 billion), an increase of 2.3 per cent year on year. By 2015, it is anticipated to be valued at about $3.29 billion. It is boosted by shipments of automobiles and electronic parts.

Overall, the outlook for the freight-forwarding market in Asia is optimistic. At present, more than 40 per cent of the company’s total sales come from Asia. Even though Europe is enduring some financial troubles, the shipping trade between Europe and Asia is considered the world’s biggest.

Frank declined to disclose FedEx Trade Networks’ revenue in Thailand, but said its growth would be significant after the office opened here.