[KWE Thailand / Sea Freight Service] “Container Round Use” and actual vehicle transport by “Auto Direct International”

04/03/2020

Samurai Asia Editorial Department

Recently, the “Kintetsu Express” Group has been focusing on sea freight transportation and providing its original services. For example, the company's Thai subsidiary, KWE-KINTETSU WORLD EXPRESS THAILAND CO., LTD. (KWE Thailand) has developed an effective utilization of empty containers called “Container Round Use” and a service which transports actual vehicles to destinations along with containers called “Auto Direct International”. We interviewed the person in charge of each service.

"Container Round Use", an effective utilization of empty containers which leads to reduction of transportation costs and environmental conservation [Thailand]

"Container Round Use is a service that has been provided as a new attempt which is ahead of its time of reduction of transportation costs and reduction of CO2. It is a service to which great attention is now being paid." says Mr. Toyoda, in charge of sea freight sales.

KWE Container Round Use

▲System and benefits of Container Round Use

Previously, it has been common for container transportation that a container is returned to a container yard empty after its cargo has been delivered to the destination. The transportation cost (labor costs and fuel costs, etc.) of returning an empty container is added to the entire service fee in general.

In the logistics industry, cost competition is getting more intense due to the entries of logistics companies from emerging countries. In addition, surcharges (fuel surcharges) has a tendency to increase. Moreover, since the International Maritime Organization (IMO) has introduced a regulation "IMO2020 Regulation" in January 2020 to reduce sulfur oxides (SOx) with the purpose of protection of the global environment, it is certain that transportation costs will increase further.
In such a severe environment, KWE Thailand is paying attention again to Container Round Use, which is one of the initiatives to reduce costs and consider the environment.

The system is very simple. After a container arrives at the port of the importing site and it is unloaded at the customer site, it is converted to a local container for export. If a container is utilized in this way, the number of empty containers will be reduced as much as possible, and unnecessary transportation costs will not be occurred. Eliminating the transportation of empty containers may also lead to reduction of CO2 emissions and the impact on the environment.

"Price competition is nearing its limit, and we expect that quality services with added value as plus alpha will be demanded from now on. We have already received inquiries from Japanese companies with high consideration for environmental conservation, and we are planning to continue expanding this service. We believe that consideration for the environment will eventually contribute to improving the image and recruiting human resources of our client companies." (Mr. Toyoda)

Auto Direct International, a service which transports completed vehicles to destinations along with containers and responds to flexible schedules [Thailand]

Auto Direct International is a service that completed vehicles (actual vehicles) are loaded in containers and transports them to destinations along with the containers. Speaking of conventional transportation of actual vehicles, it was common method to load each one on a vehicle carrier ship and carry out mass transportation. However, it is not possible to response flexibly to the demands of dealers with this method. The service was created to solve this problem.

Containers in which 4 to 6 actual vehicles loaded can depart on a container ship without waiting for the arrival of a vehicle carrier ship. It is possible to realize transportation according to the client's schedule. Mr. Wada, in charge of sea freight transportation purchasing, says “Being stored in a container since it is picked up from a customer help to reduce damage to a vehicle by wind and rain during land transportation. APLL Thailand, one of our group companies, has already started a service of vehicle transportation to the Vietnamese market for some actual vehicle manufacturers, and KWE Thailand is planning to start full-scale development in cooperation with APLL Thailand from 2020.”

New services of Container Round Use and Auto Direct International provided by KWE Thailand. They aim to be a true logistics partner for their customers by providing high value-added services.

[Introduction of the person in charge]

Mr. Akihiro Wada, Senior Manager, Sea Purchasing Division (In charge of sea freight transportation purchasing)

Joined the company in 2007. After being in charge of air export purchasing work at Kansai International Airport, began importing tasks at the Dallas branch in the United States in 2011. Worked in the sea freight purchasing division in Tokyo and worked as sales in Nagoya, and then was assigned to the Thai subsidiary from July 2019. In charge of sea freight transportation purchasing.

Mr. Yuki Toyoda, Senior Manager, Sea Sales Department (in charge of sea freight transportation sales)

Joined the company in 2008. After being in charge of air import at Chubu International Airport (Centrair) and air / sea import sales at the office in Tokyo, assigned to the Thai subsidiary from October 2018. Mainly in charge of sea freight sales.

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