DHL claims the scheduled crossborder road freight service could help businesses reduce freight cost by up to25 per cent, compared to air freight, and benefit from the shorter transit time ofat least one day relative to sea freighton a port-to-port basis. The service istargeting industry verticals includingthe automotive, fast moving consumergoods, high-tech and oil & gas sectors.
DHL said it has seen over the past year, an increasing demand for road freight service in addition to air and sea freight services. The volume of goods transported overland between the three countries is poised to grow between 2009 and 2014, with the movement of goods in the automotive, electronics and consumer goods industries expected to register an annual compounded growth rate of 8 per cent each, according to DHL.
The service is expected to further facilitate trade between the three neighbors which saw total bilateral trade between Malaysia and Thailand increase from US$15 billion in 2006 to $19.6 billion in 2008. Malaysia is also Singapore’s top trading partner with bilateral trade reaching S$111.4 billion (US$79.1 billion) in 2008, an increase of 1.4 per cent from the previous year.
Traditionally, shipments are transported into Bangkok for domestic distribution in Thailand. However, after recognising growing demand in Southern Thailand, DHL designed its service to enable goods transported into Thailand to be cleared at the border in Sadao before onward distribution within the area.
DHL’s cross-border road freight service will operate out of the company’s hubs located in Bangkok, Kuala Lumpur, Penang, Sadao and Singapore.
