THURSDAY, April 25, 2024
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E-commerce to help drive air cargo industry, opportunities seen abroad 

E-commerce to help drive air cargo industry, opportunities seen abroad 

  ‘Myriad overseas trade opportunities for Thai businesses’: executiveDHL Express Thailand expects international air cargo volumes to continue growing in the coming year, while new trends will be good for Thai entrepreneurs wanting to expand into a wider market. Suchat Sritama talks with Chananyarak Phetcharat, managing director of DHL Express Thailand.

  What are the prospects for the global freight business in 2017? 

According to the International Air Travel Association, global air-cargo volumes are expected to reach 55.7 million tonnes in 2017, a 3.3 per cent increase from 53.9 million tonnes in 2016 due to a moderate uptick in demand. However, the trading conditions remain challenging. The strongest growth is forecast for trade lanes between Asia and the Middle East, within the Middle East region, and between North and South America. 
Accelerating urbanisation will increase the number of mega-cities and the emergence of mega-regions, mainly in Asia, creating agglomerations of GDP and population that are expected to drive world trade. Aviation will be critical to support the movement of people and goods between mega-cities and regions. 
Thailand’s air cargo industry is reflecting a similar picture to [the global industry] as a spike in e-commerce has offset the slowdown of international trade. 

What are the challenges and opportunities for Thailand in the coming year?

DHL has revealed 26 key trends that could impact the logistics industry in the next five to 10 years in its 2016 “Logistics Trend Radar”. According to the study, changing consumer behaviour, desire for personalisation, same-day delivery and the growing e-commerce trend were just some of the [highlights]. We believe that these changes, especially the growth of the e-commerce industry, will also take place in Thailand. 
The possibilities created by the Internet and new technologies mean that there are myriad overseas trade opportunities for Thai businesses. However, only 1 per cent of Thai small and medium-sized [enterprises] today are capable of doing international trade. Most are still struggling with challenges such as the lack of foreign-market knowledge and complex customs regulations in destination countries. 
In order to overcome such challenges, and in support of the government’s “digital economy-Thailand 4.0” policy, DHL Express has partnered with public and private [enterprises] such as the Support Arts and Crafts International Centre of Thailand and comGateway to stimulate SMEs’ growth and enhance competitiveness, which are key contributors to the country’s economic sustainability. 
DHL Express Thailand is also working closely with the Department of International Trade Promotion and Amazon.com to help Thai SMEs capture opportunities in e-commerce and grow internationally by providing our expertise and access to a global network of over 220 countries and territories.

What were the operating results for DHL Thailand in the first three quarters, and what is the projection for the final quarter of this year?

Overall, Deutsche Post DHL Group increased operating profit significantly in the third quarter of 2016, continuing the strong earnings momentum seen in previous quarters. Globally, the Express division significantly increased both revenue and earnings in the first nine months of 2016. Revenue climbed by 1.8 per cent to 10.2 billion euros (Bt383 billion) in the first nine months compared with the same period last year. This dynamic performance was driven by solid growth in the international time-definite delivery business.
DHL Express Thailand continues to perform well and is growing at a healthy rate with strong growth in international time-definite shipments and we expect this trend to continue in 2017. The efficiency improvements we have achieved in recent years and our unmatched position in the world’s growth markets have prepared us well for continuing on our profitable growth path.
DHL Express remains committed to realising new business potential by developing advanced logistics solutions for our customers and investing in the network and technology to simplify customers’ lives. 

What are the new developments, initiatives, and marketing and strategic plans for Thailand in 2017 and beyond?

DHL Express Thailand strives to be the quality leader in the industry and the most customer-centric company. This is supported by our investments in infrastructure, technologies and customer experience management programmes, to achieve our aspirations to be a “provider of choice, investment of choice and employer of choice”, as well as to contribute to a better world with the Living Responsibility programme. 
We believe that by having motivated people in the company, it will create great service quality, which leads to loyal customers and ultimately a profitable network. Coupled with our award-winning internal programmes – Certified International Specialist and Certified International Manager – these are focused on attracting, retaining and training our talented DHL employees around the world. 
In 2017, we will continue to work with various partners in both the public and private sectors to generate greater advantages for Thai entrepreneurs, allowing them to cultivate sustainable business growth.
 

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