We join forces in the Asian freight forwarding sector

The Asia Pacific region has witnessed significant growth in the aviation and logistics sectors over the past few years. With increasing globalization and trade flows, demand for air cargo services has increased dramatically, fueling the expansion of the freight forwarding industry in the region.

In particular, there was a significant increase in e-commerce, cross-border trade and manufacturing activity, which contributed to the growth and stability of year-round air freight demand in the Asia-Pacific region. The establishment of TAMEX by Extrans Global was prompted by a strategic decision to diversify the company’s service portfolio and increase its competitiveness in this sector.

Recognizing the growing demand for the general airline sales and service agent (GSSA) sector, TAMEX saw an opportunity to leverage its freight forwarding expertise to expand in this segment. By establishing TAMEX, Extrans Global wants to offer our clients a more comprehensive package of services, while leveraging new sources of revenue and strengthening its position in the market.

“The global GSA market is indeed competitive, and there are already established players in the Korean market,” said Alvin Tam, senior vice president of commercial affairs at TAM Group.

“However, we see this competition as an opportunity rather than a threat. TAMEX is committed to differentiating itself through flexibility, excellent service quality and innovative value-added solutions. By leveraging our flexibility, customer-centric approach and strategic partnerships, we are confident that we can thrive in this competitive environment.

“TAM Group, our joint venture partner for TAMEX, is a renowned GSSA based in Hong Kong. With a strong global presence, TAM Group brings extensive experience and a solid network to our partnership. Their expertise in the GSSA sector complements our strengths and we are confident that our collaboration will drive TAMEX’s mutual growth and success.

Market challenges

Fluctuating demand, geopolitical pressures and changing air freight volumes are challenging long-term planning in this sector, introducing uncertainty, volatility and risk into business operations. GSSA providers must adopt a dynamic and adaptive approach to strategic planning, incorporating scenario analysis, risk management and agility into decision-making processes. By remaining agile, innovative and customer-centric, GSSAs can effectively navigate market dynamics, seize opportunities and sustain growth in the face of uncertainty.

“Geopolitical events can impact capacity by restricting access to certain airspace or routes, thereby affecting flight schedules, cargo flows and transportation networks,” Tam said.

“In response to this, GSSA providers like us are working closely with airlines to assess route availability, adjust capacity allocation and explore alternative transportation options to minimize disruption and ensure timely delivery of cargo.

“By maintaining flexibility, agility and strong partnerships, we mitigate the impact of geopolitical events on performance and maintain reliable service for our customers.”

Despite sustained air freight volumes, the GSSA market is expected to remain resilient and continue to grow, driven by increasing demand for specialized air transportation services, e-commerce logistics and pharmaceutical transportation. As companies seek more efficient and cost-effective solutions to their logistics needs, GSSA providers like TAMEX are well-positioned to offer value-added services, optimize capacity utilization and drive growth through strategic partnerships and market expansion initiatives.

“External pressures such as inflation and conflicts can impact operations by impacting fuel prices, currency exchange rates and trade routes,” Tam continued.

“These factors can lead to increased operating costs, supply chain disruptions and changes in market dynamics, requiring GSSA providers to quickly adapt and implement contingency plans to mitigate risk.

“TAMEX closely monitors external developments, maintains open communication with stakeholders and takes a proactive approach to address challenges and ensure operational continuity.”

Future development

TAMEX focuses on strategically expanding its presence in South Korea as a hub for further expansion and growth of its global influence. With South Korea acting as a global hub for its partner airlines, TAMEX aims to provide global outbound solutions for major airlines connecting the eastern and western parts of the globe.

With these goals, TAMEX hopes to provide its partners with more solutions and options for schedule stability and flexible rates. By strategically positioning itself in South Korea, TAMEX intends to capitalize on emerging opportunities and strengthen its position as a leading GSSA supplier in the region.

“TAMEX strives to evolve in line with changing customer requirements, prioritizing flexibility, innovative solutions and service excellence,” Tam concluded.

“We are investing in agile initiatives to provide our partners with flexible and turnkey solutions that give customers greater control over their shipments.