In the last few years, the aviation and logistic sectors in Asia Pacific have seen significant growth. The demand for air cargo has increased due to globalisation and trade flows. This has led to expansion in the freight forwarding industry.
The Asia Pacific region has seen a significant increase in ecommerce, cross-border trading, and manufacturing activity. These factors have all contributed to the growth and stability in air freight demand throughout the year. TAMEX was established by Extrans Global as a result of a strategic decision made to diversify its service portfolio and increase its competitiveness.
TAMEX, recognizing the growing demand for airline General Sales and Service Agents sector (GSSA), saw an opportunity to leverage their expertise in freight forwarding and expand into this segment. Extrans Global, through TAMEX, aims to provide a comprehensive range of services for our customers while tapping into new revenue sources and strengthening our market position.
Alvin Tam Senior Vice President for Commercial at TAM group said that the global GSA market was indeed competitive and that established players were already operating on the Korean market.
“However we see this competition as a chance rather than a danger. TAMEX is dedicated to differentiation through its agility, superior service quality, and innovative additives. We are confident that our customer-centric approach and strategic partnerships will help us thrive in the current competitive landscape.
“TAM Group is our joint venture partner for TAMEX. It is a renowned GSSA based in Hong Kong. TAM Group, with its global presence and robust network, brings a wealth of experience to our partnership. Their expertise in GSSA complements our strengths and we are confident our collaboration will drive growth and success for TAMEX.
Market Challenges
The uncertainty, volatility and risks that come with geopolitical pressures and fluctuating airfreight volumes can make it difficult to plan for the future. GSSA providers need to adopt a dynamic, adaptive approach to strategic plan, incorporating scenarios, risk management and agility into the decision-making process. GSSAs that are innovative, agile, and customer-focused can navigate market dynamics effectively, seize opportunities and sustain growth despite uncertainty.
“Geopolitical Events can Impact Capacity by Restricting Access to Certain Airspace or Routes, Affecting Flight Schedules, Cargo Flows, and Transportation Networks,” Tam stated.
By maintaining flexibility, agility and strong partnerships, We mitigate the impact of geopolitical event on capacity and maintain service reliability for our clients.
Despite flat airfreight volume, the GSSA market will continue to grow and remain resilient, due to increasing demand for specialised services, ecommerce logistics, and pharmaceutical transport. GSSA providers such as TAMEX, who are in a good position to offer more cost-effective and efficient solutions for companies’ logistics needs, are able to offer value-added service, optimize capacity utilisation and drive growth via strategic partnerships and market-expansion initiatives.
“External pressures like inflation and conflict can impact operations through fuel prices, currency rates, and trade routes,” Tam added.
These factors could lead to increased operating expenses, supply chain disruptions and changes in the market dynamics. GSSA providers will need to adapt quickly and implement contingency planning to mitigate risks.
“TAMEX closely watches external developments, maintains an open communication with stakeholders and adopts a pro-active approach to address challenges, and safeguard operational continuity.”
Future developments
TAMEX is focusing on strategically expanding its South Korea presence as a hub in order to expand and grow its global influence. TAMEX aims to provide global outbound services for major airlines that connect the East and the West.
TAMEX aims to achieve these goals by offering more options and solutions to its partners, in terms of schedule flexibility and schedule stability. TAMEX wants to take advantage of emerging opportunities in South Korea by strategically positioning itself.
Tam explained that TAMEX is aiming to evolve in line with the changing customer requirements, prioritising agility and innovative solutions.
“We invest in agile initiatives to provide flexible and off-the table solutions for our partners, giving them greater control over their shipments.