FREIGHT forwarders are worried that express cargo operators will compete with them for big consignments.
Mr Anthony Lau Siu-wing, chairman and chief executive of BALtrans Holdings, said concern was growing that there would be competition from express cargo companies such as Federal Express and United Parcel Services, which are limited to handling parcels below a certain weight.
However, express companies said they were only servicing a market which needed express services for parcels below a certain size.
In a move to head off this challenge, freight forwarders are beginning to strongly market the concept of total logistics.
Under this concept, a freight forwarder takes delivery of a consignment from a manufacturer for storage at its warehouse, where on receiving an order it will sort out and ship the goods to the client.
Mr Lau said this approach enhanced a freight forwarder's role in the transportation link and assisted the manufacturer with warehousing and shipping.
Mr Lau said more exporters were sending their cargo to inland cities in Europe by air as the cost was only slightly more than by sea.
