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Changi tests intra-terminal trucking to boost forwarder productivity
THE Singapore Aircargo Agents Association (SAAA) will soon be offering its own airport shuttle truck services for freight in a bid to boost the competitiveness of exporters, forwarders and agents, reports New York's FlyingTypers.
The plan will be tested with 28 forwarders from July with participating companies combining loads on trucks, which will shuttle cargo within Changi Airport Cargo Complex.
"Using consolidated trucks instead of multiple trucks to the same location will improve competitiveness," said SAAA chairman Steven JK Lee.
Mr Lee told FlyingTypers his organisation was being helped with the funding of the new service by the Singapore Government, which wants SMEs improve productivity.
The move to help Singapore's beleaguered forwarders and air freight agents comes as the sector faces difficulties.
Changi's freight volumes have remained static for a decade, while Mr Lee said the high costs of operating in Singapore and the strength of the Singapore dollar had impacted the competitiveness of manufacturing.
"Singapore is loosening the dollar, but we're competing against Vietnam and Malaysia amongst others," he explained.
"Vietnam has lower costs and the Ringgit has depreciated substantially. This is a concern for freight forwarders. If there isn't growth they need to restructure and make redundancies. Some forwarders have already gone to a four-day week rather than shed jobs," he said.
The plan will be tested with 28 forwarders from July with participating companies combining loads on trucks, which will shuttle cargo within Changi Airport Cargo Complex.
"Using consolidated trucks instead of multiple trucks to the same location will improve competitiveness," said SAAA chairman Steven JK Lee.
Mr Lee told FlyingTypers his organisation was being helped with the funding of the new service by the Singapore Government, which wants SMEs improve productivity.
The move to help Singapore's beleaguered forwarders and air freight agents comes as the sector faces difficulties.
Changi's freight volumes have remained static for a decade, while Mr Lee said the high costs of operating in Singapore and the strength of the Singapore dollar had impacted the competitiveness of manufacturing.
"Singapore is loosening the dollar, but we're competing against Vietnam and Malaysia amongst others," he explained.
"Vietnam has lower costs and the Ringgit has depreciated substantially. This is a concern for freight forwarders. If there isn't growth they need to restructure and make redundancies. Some forwarders have already gone to a four-day week rather than shed jobs," he said.
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