The air cargo industry in Southeast Asia is witnessing remarkable growth, driven by rapid economic development and the region’s strategic position as a global trader. However, increased opportunities bring greater competition.
When the coronavirus hit, e-commerce emerged as the dominant spending trend, steadily increasing month over month. Strategically located in South Asia, Teleport draws cargoes from China to Southeast Asia to feed its consolidated Airasia network, capturing the market potential offered by this thriving sector.
“China is strong, and Hong Kong is important. Saigon and Hanoi are important markets where Teleport is looking to increase production capacity to boost the market. India is growing very quickly, delivering high volume,” explained Francis Anthony of Teleport. “One of our strategies is to focus on “Our next day offerings are by adding the right capacity at the right time from China to different parts of Southeast Asia and the Asia-Pacific region.”
With rapid growth, Teleport hopes to expand its reach not only in Southeast Asia but also in the Asia-Pacific region, Europe and the United States using the existing network and strategic partners.
“Building trust and capacity is our main focus, but we have been fortunate to see support not only from the shipping sector but also from the fast-growing e-commerce sector. We have also put together a dedicated team to complement our existing capacity, and this approach has proven to be very successful.
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Flying cargo ship
Teleport welcomed its first dedicated freighter into the fleet, the Airbus A321 Passenger-to-Freighter (A321 P2F), in July last year, looking to move into a new phase of growth. Within the next For 24 months, Teleport aims to have up to ten freighters, as it aims to complement its passenger freight approach.
The choice of a converted aircraft rather than a purpose-built freighter was driven primarily by specific needs. Teleportation requires a Short Development Range (SDR) of routes from other hubs, eliminating any wide-bodied freighters. Choosing a different fleet would also have involved complexities around their crewing and maintenance.
The available option, an Airbus A321 freighter, was chosen due to its unique design. The upper portion accommodates consolidated shipments, to meet the needs of customers who prefer component merchandise. Manpower shortages at airports after the pandemic made unloading and loading cargo a challenge, so the A321’s efficiency in handling cargo with minimal manpower was a crucial factor.
The presence of cargo aircraft allows greater control over flight paths. Unlike passenger airlines that are limited to point-to-point destinations, Teleport can use triple routes, which improves aircraft utilization. This flexibility is crucial in determining flight schedules and transporting cargo.
“With the cargo ship, we will be able to handle special cargo such as dangerous goods, odd-sized items, live animals, etc. These are some of the limitations of passenger aircraft, which are very good for carrying small and loose electronic devices. Commercial Parcels,” Anthony explained. “In addition, we will have better control over our flight network, ensuring reliability and flexibility in serving our customers and meeting the growing demand within the region.”
Relationship with competitors
By capitalizing on the wave of regional opportunities, Teleport is looking to build on its already large network. Despite serving 240 destinations, the logistics provider recognizes the need for expansion and accelerated growth.
Instead of competing for parts of the market, Teleport is looking to shift away from a traditional competitive mindset to an integration mindset. With the aim of making the most of it, especially in sectors where it does not currently operate, Teleport is looking to build partnerships with other carriers to fill the gaps in its network.
Rather than competing in competition, freight handlers see these partnerships as an opportunity to leverage each other’s strengths and create collective success for their businesses and regions.
A recent example of this strategy is the collaboration with Garuda. By identifying and filling empty segments such as Denpasar to Australia, Teleport has not only improved load factors but also contributed to the overall growth of both companies.
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Shift in strategy
In the past 18 months, looking at how to secure its position in the region, Teleport has seen a significant shift in its strategic focus to become more directly engaged with customers and its operations.
Previously, Teleport relied heavily on third-party channels, lacking direct interaction with global freight forwarders. Realizing this gap, they embarked on targeted efforts to correct it.
The initial challenge was establishing direct relationships, so Teleport systematically secured appointments in each country in which it operated. This process was complex, and involved complying with regulations and overcoming regulatory hurdles.
Known in the market as a low-cost, procedure-centric airline with a focus on passenger capacity, Teleport is looking to adapt and evolve to meet the needs of global customers.
“We are working with strategic partners that will unlock some of the capabilities that we really need to deploy,” Anthony said. “We are talking aggressively with customers and airlines to grow segments and reach beyond the AirAsia network.”
