Thai firm links with US Accelerated to challenge airfreight with trucks, price

Thailand's Leo Transport Corporation, a logistics service provider, is joining with a US partner, Accelerated Freight Service, to offer multimodal transport services and challenge air cargo on pricing door-to-door from Asia and onward from the US west coast ports, reports The Bangkok Post.

Leo Transport aims to make the speedy service an alternative for exporters wanting to avoid costly airfreight but still needing quick logistics service to cater to overseas customers' just-in-time requirements. Target markets are automotive parts, books and garments exporters.

According to Leo group president Kettivit Sittisoontornwong, seagoing shipments would be loaded on ships' decks to accelerate stevedoring. "The charge is 75 per cent lower than airfreight,'' he said.

The Leo Sea-Speed Truck service, from Laem Chabang, serve importers in the US within 22 days, compared with 30-35 days by conventional sea and land logistics transport, said a company statement.

Time reductions, said the company, are achieved by the use of trucks, instead of trains, with 24-hour non-stop operations to carry shipments from US west coast ports to the east coast and points in between.

Mr Kettivit also said that while rail transport took between one and two weeks to carry products from the west coast to the east coast, trucks could move the shipments to within 68 to 72 hours.

Accelerated Freight Services, a door-to-door specialist, also provides pre-clearance for the shipments.

Mr Kettivit said many exporters failed to control their lead times so airfreight seemed to be the most popular choice to deliver goods to other countries in a timely manner. The service has been offered in Thailand for two years. Currently, Leo Transport provides the service to three customers in the printing and footwear industries. It expects to have between 10 and 15 clients this year.

The consolidated revenue of the Leo group last year reached THB1 billion (US$30.6 million) and is expected to grow by 20 per cent this year, he said.