KIWI Logistics Cargo GSA has been received very well in the first year of business, especially to South American destinations. We have gained a reputation for sourcing ‘hard to reach’ solutions and have been supported by forwarders that have enjoyed our rapid and reliable service,” Joanne McConachy, its general manager told Payload Asia.
Kiwi also organises shipments to the Caspian, Africa and the Americas, as well as befits a GSA with an eye on the energy sector and seemingly the future.
“Whilst general cargo and tech equipment is entering a sunset era for airfreight moves, the energy sector demand is strong and growing,” McConachy added. A key lynchpin for Kiwi in the energy sector was the appointment as Coyne Airways GSA in Singapore.
Coyne’s services to the oil and gas markets around the Caspian Sea, including Aktau and Atyrau in Kazakhstan, are particularly popular with freight forwarders in Singapore due to the city-state’s position as a regional centre of excellence for the oil and gas industry, noted McConachy.
As a sector, energy its not entirely ‘boxable’, needing long and outsized shipments for which Kiwi has sourced multiple interline solutions, coupled with good freighter options into locations usually and politely described as challenging.
Kiwi’s tagline or as it calls it, its business philosophy, is ‘offering challenging destinations whilst keeping cargo moves simple.’
There is one simplicity it tends to shy away from though: Charters. Kiwi admits to getting requests for these but its view is that these are frequently not viable and so it tends to seek, maybe even create, a sea/air solution.
Adding to the brew, and the complexity of their task, is a mixed bunch of multinational clients, as well as medium forwarders and some express businesses. McConachy is tight-lipped on precisely who her main customers are, saying only that Kiwi works with, “MNC’s forwarders and Singapore’s larger forwarders, including local heroes”.
“Co-loading is popular in Singapore as there is smaller forwarders that need our services, but can take advantage of bulk moves to improve their margins.
Due to our fluid and good connectivity with a comprehensive and growing list of carriers we move everything from ship spares, telecoms equipment, oil piping, health care and general commodities to support heavy lift, project and energy industries,” McConachy added.
Singapore, its base, looms large in Kiwi’s thinking. It is aware of how competitive it is, but thankful of the advantages the city-state’s convenient Asia-Pacific location and infrastructure, such as state-of-the-art Changi and other hardware bring.
It is also and this is not surprising given Singapore’s connectivity mantra looking to implement technology and software that will bring efficiency and a great platform of visibility to clients and suppliers, said McConachy.
The company is realistic though both about its own prospects and about those of the industry in general expecting greater competition from sea freight, as well as the problems that currency volatility brings. It is therefore works hard to ensure its offerings remain competitive.
On a more personal level it is also aware timing is important and despite its early, rampant success, modest. “As a start up business the challenge to knowing when to implement new resources is a critical planning decision,” said McConachy. All of which goes to explain a highly balanced and striking sensible assessment of what the coming years, its second, is likely to hold.
“We assess that there will be much of the same, the markets will remain stable with some specialised destinations seeing increase in demand, but overall the volumes will be constant. With the global economy still nervous we don’t anticipate any seasonal spikes or product drives.
We anticipate that there will be more downward pressure on pricing,” added McConachy.
