Geodis launches time-definite road freight service across southeast Asia

Global freight and logistics group now offering scheduled departures along the Singapore-Kuala Lumpur-Bangkok axis, particularly targeting ‘a gap in the market’ for shipments of 30-1,000kg, with multi-modal gateway services beyond these hubs.

Global freight and logistics group Geodis has developed a ‘time-definite’ road freight service across southeast Asia after identifying a gap in the market for scheduled road transport in the region, particularly for shipments of 30 to 1,000 kilogrammes.

Drawing on “a wealth of experience” running trucking services in the region over the last twenty years, Geodis Road Network (GRN) Asia Pacific has now been established as a time- and date-specific service for consignments along the Singapore-Kuala Lumpur-Bangkok axis, with the network set to expand this year to link other hubs “throughout the southeast Asian landmass”, the company said.

It said trade cooperation within the ASEAN bloc continues to strengthen through free trade agreements, and e-commerce activity is set to rise “dramatically”, adding: “Both trends support the forecast of growth in the regional cross-border road transport market to some US$4.1 billion in revenue by 2023. This represents an annual growth rate of over 15%.”

Rene Bach-Larsen, sub-regional managing director for the ASEAN region, commented: “Geodis recognises the opportunities this brings to its customers and will continue to develop GRN in support of their business growth. As the region’s road infrastructure continues to improve beyond the Singapore-KL-Bangkok spine, scheduled road transits will become an increasingly attractive option, being faster than sea and cheaper than air.”

Geodis said it had “identified that this gap in the market is particularly true for 30 to 1,000 kilo payload shipments”, noting that GRN “will benefit shippers of such consignments with a simplified, door-to-door tariff structure”.

It added: “For customers with this type of freight, GRN offers end-to-end control through the skills of Geodis teams across the region, providing seamless management of consignments from first to last mile. To add to this level of care Geodis owned assets, such as containers, air-suspension trailers and dedicated trucks are utilised. Such control minimises delays at border crossings, heightens security and gives assurance of reliable transit times.”

Alan Miu, regional director for customs brokerage, truck and rail, explained the importance of his team’s input in achieving swift cross-border transits, noting: “Our customs control tower solution gives peace of mind to our customers. A single Geodis point of contact advises each of our clients before and during transits on customs and other necessary documentation, assisting with electronic lodging of declarations in advance to avoid delays.

“This hands-on care also makes customers completely aware of their shipment’s progress through GPS monitoring, contingency planning if necessary and final, ‘signed-for’ delivery.”

Onno Boots, regional president and CEO for Geodis Asia Pacific – and who helped build a regional southeast Asia road freight network some years ago for TNT – said the company understood the need to respond to the fast-moving pace of changing economic circumstances and the consequent demands on the logistics environment, adding: “We believe that our client-centric and employee-driven approach provides the foundations of a successful future for Geodis and our customers by adapting to the transformations in the logistics industry that we are seeing.

“Our investment in and operation of GRN are prime examples of this philosophy in action. Its development has been led by identifying a gap in the market, it is enabled by good data communication and implemented by our dedicated people.”

Geodis concluded: “In GRN, Geodis sees a product that reduces supply chain costs; enhances a client’s working capital by improving delivery times, which also optimizes assets by minimizing inventories and warehousing capacity. Ultimately customers are provided with a competitive advantage in order to grow their businesses.”

Source: Lloyd’s