Yusen Logistics (Thailand) Launches ULD Build-up Services at their New FZ Facility
Satisfying customers with a high level of quality service is important for any business. Especially for those in the service-oriented fields, companies like Yusen Logistics (Thailand) strive to provide the smoothest and most reliable services possible.
To ensure that they can handle their customers’ cargo efficiently and to achieve the highest ULD utilization possible, the company now provides ULD build-up service using their own in-house staff at their Free Zone (FZ) facility at Suvarnabhumi airport. Not just that, the company also entered into block space agreements with low-cost carriers at Don Mueang airport to widen both company’s and customer’s opportunities in the market.
To learn more we spoke with Mr. Kazuaki Sekito, Executive Officer; Ms. Nantapak Ratanaprateepkorn, Senior General Manager; Mr. Masaki Muto, Assistant General Manager; Ms. Phan-orn Phanthongdee, Assistant General Manager / Sales Team; and Mr. Pairit Miteja, Assistant General Manager at Yusen Logistics (Thailand) about their ambitious plans to increase service quality via the opening of new FZ facility, offering ULD build-up services, and expanding network coverage via block space agreements with low-cost carriers.
With the opening of their new facility inside the FZ at Suvarnabhumi airport, Yusen Logistics (Thailand) aims to maximize service efficiency and offer more flexibility to their airfreight customers. To accomplish this, Yusen Logistics (Thailand) already has a dedicated office at the airport to support customs, but also recently launched their own ULD build-up service in order to improve their already trusted service quality at their new facility.
Unit Load Devices (ULDs) were first invented to protect cargo from damage and variable weather during transportation all the while helping the cargo operators to load and unload the shipments to/from the aircraft easier and faster. ULDs are separated into two main types; containers and pallets, and cargo operators are normally the ones who decide which one to use depending on the shapes and sizes of the cargo. However, when there’s countless numbers of ULDs being transported on airplanes to and from every corner of the earth each day, and many of them can be damaged during the loading or unloading process. Bad staffing or stacking cargo into the ULDs are one of the most critical processes which can often lead to this loss. That’s why Yusen Logistics (Thailand) decided to step into the ULD build-up process to take care of their customers’ shipments. They can do it all; the wrapping, stuffing, and stacking of cargo by their well-trained and experienced in-house staff.
“Even though ULDs were invented to help protect the cargo stored inside during transport, there are still a lot of them that get damaged and it’s often caused by stuffing and stacking of cargo into the ULDs. Therefore, we decided to intact our own ULD build-up process with the aim to provide more reliability and better quality of services to our airfreight customers. We want to make sure that our customers’ cargo will be looked after, handled properly, and able to arrive to the destination in perfect condition,” said Mr. Sekito.
Ms. Ratanaprateepkorn also added, “We like to avoid any possible damage to the cargo that we handle because we truly put a highlight on our service quality. Many other freight forwarders might not pay this close attention, they hand over the cargo to cargo terminal and hope the cargo will be well handled. The truth is, there are huge amounts of cargo from hundreds of forwarders being sent to the cargo terminals each day and there’s a chance that any piece cargo could be damaged during the ULD build-up process or during the loading process. That’s why we would like to handle this function with our own staff, inside our own facility, before handing over the completed built-up ULD to the terminal for scanning then loading onto the aircraft.”
High Value Cargo
Major customers of Yusen Logistics’ (Thailand) consolidation air freight services include the automotive, electronics and technology sectors, which are normally high value cargo. This makes it even more crucial that their cargo needs to always be in safe hands, from the origin to the destination.
Ms. Phanthongdee said, “We don’t normally go for a half-way service, we always go for the complete solution. That means we don’t provide the ULD build-up service only from the Bangkok side, but we need to be able to provide the same service at the destination airport too. So, we have to collaboratively develop services and select the destinations carefully to ensure that we can fully control service quality. The first destination that we currently offer this service at is Shanghai Pudong Airport. However, with our worldwide connections, we can provide this type of services to any destination airport upon request too. Because in many countries around the globe, ULD build-up has always been a common service for international logistic companies to offer to air freight customers, even though there are not many companies in Thailand that currently offer this service.”
Besides ensuring the safety of cargo, taking care of ULD build-up processes also allows Yusen Logistics (Thailand) to be able to maximize ULD utilization via the company’s consolidation services. Many people may ask, why placing or piling stuff into the container or pallet could be so complicated?
“The ULD build-up still needs to be done mostly by manual processes as it has been done over forty years now, when the ULD first introduced to the airfreight industry. Therefore, we choose to take ULDs from the airlines, manage the critical operations to load cargo into the ULDs with our own staff to ensure protective and effective loading options to meet our trusted quality. We then deliver it to the cargo terminal to proceed with the scanning and loading process. It’s very important that the workers who are responsible for this process have good training and experience, so they will surely have the know-how of utilizing a ULD to it’s fullest, all while keeping the cargo at its safest condition possible. We do this to gain the trust of our customers, so that we can help them deliver their cargo safely and effectively,” said Mr. Muto.
Expanded Network Coverage
With Yusen Logistics’ ambitious goals to provide customers with incomparable services, the company decided to offer more connections between Thai and international customers via Don Mueang airport (DMK). Yusen Logistics recently signed block space agreements with low-cost carriers (LCC) for the belly-hold capacity on international flights to and from DMK.
Mr. Miteja said, “We partnered with LCCs through block space agreements for belly-hold capacity on flights to Narita which operate almost daily for outbound cargo. While in the Chinese market, we have block space agreements on LCC flights to and from Shanghai. In the future, when our partner increases their flight frequency we will increase our space allocation too. We handle around 60-80 tons per month now, which is already enough to fill the space we have, but we anticipate an increasing demand for both inbound and outbound transportation, so we are also planning to support this growth too.”
In the airfreight and logistics industry, speed, safety and efficiency are key, but we can’t deny that service quality is essential too. Businesses need to provide more service coverage, expand their networks and improve their offering to customers. In a competitive market like the airfreight and logistics industry, meeting customer requirements isn’t enough anymore; going beyond customer’s expectations like Yusen Logistics (Thailand) is doing is the path to future success.