The Asia Pacific region has experienced significant growth in the aviation and logistics sectors over the past few years. With increasing globalisation and trade flows, demand for air cargo services has surged, driving expansion in the region’s freight forwarding industry.
Specifically, there has been a notable rise in e-commerce activity, cross-border trade, and manufacturing activities, all contributing to the growth and stability of year-round air freight demand in the Asia Pacific region. The establishment of TAMEX by Extrans Global was driven by a strategic decision to diversify the company’s service portfolio and enhance its competitiveness in the sector.
Recognising the growing demand for airline General Sales and Service Agents (GSSA) sector, TAMEX saw an opportunity to leverage its expertise in freight forwarding to expand into this segment. By establishing TAMEX, Extrans Global aims to offer our customers a more comprehensive suite of services while tapping into new revenue streams and strengthening our position in the market.
“The global GSA market is indeed competitive, with established players already operating in the Korean market,” Alvin Tam, Senior Vice President of Commercial at TAM Group, said.
“However, we view this competition as an opportunity rather than a threat. TAMEX is committed to differentiation through agility, superior service qualities, and innovative additive solutions. By leveraging our agility, customer-centric approach, and strategic partnerships, we are confident in our ability to thrive in this competitive landscape.
“TAM Group, our joint venture partner for TAMEX, is a renowned GSSA company based in Hong Kong. With a strong presence globally, TAM Group brings extensive experience and a robust network to our partnership. Their expertise in the GSSA sector complements our strengths, and we are confident that our collaboration will drive mutual growth and success for TAMEX.
Market challenges
Fluctuation in demand, geopolitical pressures, and changing airfreight volumes pose challenges to long-term planning in the sector by introducing uncertainty, volatility, and risks to 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 staying agile, innovative, and customer-focused, 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 stated.
“In response, GSSA providers like us, work closely with airlines to assess route availability, adjust capacity allocations, and explore alternative transportation options to minimise disruptions and ensure timely delivery of cargo.
“By maintaining flexibility, agility, and strong partnerships, we mitigate the impact of geopolitical events on capacity and uphold service reliability for our customers.”
Despite flat airfreight volumes, the GSSA market is expected to remain resilient and continue to grow, driven by increasing demand for specialised air cargo services, e-commerce logistics, and pharmaceutical transportation. As companies seek more efficient and cost-effective solutions for their logistics needs, GSSA providers like TAMEX are well-positioned to offer value-added services, optimise capacity utilisation, and drive growth through strategic partnerships and market expansion initiatives.
“External pressures such as inflation and conflicts can impact operations by affecting fuel prices, currency exchange rates, and trade routes,” Tam continued.
“These factors may lead to increased operating costs, supply chain disruptions, and changes in market dynamics, requiring GSSA providers to adapt quickly and implement contingency plans to mitigate risks.
“TAMEX closely monitors external developments, maintains open communication with stakeholders, and adopts a proactive approach to address challenges and safeguard operational continuity.”
Future developments
TAMEX is focused on strategically expanding its presence in South Korea as a hub to further expand and grow its influence globally. With South Korea acting as a global hub for its partnered airlines, TAMEX strives to provide global outbound solutions for major airlines interconnecting the East and West sides of the globe.
With these goals, TAMEX hopes to provide more solutions and options to its partners in terms of schedule stability and flexible rates. By strategically positioning itself in South Korea, TAMEX aims to capitalise on emerging opportunities and strengthen its position as a leading GSSA provider in the region.
“TAMEX is looking at evolving in line with changing customer requirements by prioritising agility, innovative solutions, and service excellence,” Tam outlined.
“We are investing in agile initiatives to provide flexible solutions and off-the-table solutions for our partners to give customers with greater control over their shipments.
Joining forces in Asia’s freight forwarding sector
