Note to editor: Find out more on how companies can build supply chain resiliency through omnisourcing and multimodal transportation strategies on Logistics of Things. BANGKOK, THAILAND - Media OutReach Newswire - 12 November 2024 - DHL Global Forwarding (DHL), the freight specialist arm of DHL Group, said that road freight will continue to play an important and increased role in Southeast Asia, as companies look to build more resilient supply chains. In a new white paper titled "Highway to the Future: Navigating the Road Freight Opportunities in Southeast Asia", DHL outlines the role of road freight as a single or in a multimodal solution, as businesses look to more agility and flexibility in transportation modes for their shipments.

"Over the last few years, we have seen strong export growth in Vietnam, Thailand, and Malaysia. Vietnam is Southeast Asia's largest exporter currently, while Malaysia has strengthened its position as a semiconductor hub. Thailand has made great strides in automobility, particularly in the electric vehicles (EV) sector.

The new DHL International Multimodal Hub at Suvarnabhumi Airport Free Zone 3 will also see Thailand emerge as a regional trade hub. The simplified process will allow goods to be shipped through multiple transport modes, making the country even more attractive for companies looking to expand or move part of their production into Southeast Asia.

While our last whitepaper focused on the emerging use of road freight during the pandemic, our new whitepaper highlights why it remains important even as we see air and ocean freight normalize globally," said Thomas Tieber, CEO, DHL Global Forwarding Southeast Asia and South Pacific.

Countries such as Vietnam, Thailand, Malaysia, and Singapore are set to benefit, especially with their connectivity options, as trade can happen through either road, air, or ocean. These countries also have favorable trade agreements with major economies globally.

The growing importance of building a resilient supply chain has called for greater agility and transparency with real-time visibility and insights into shipment statuses and road conditions, amidst concerns about security, safety, and stability. Southeast Asia's advanced cellular networks have enabled real-time monitoring of road freight via sensors and GPS units, providing customers with accurate predictions of cargo location and arrival times¹.

While global companies are diversifying their supply chain, Chinese companies are also expanding their manufacturing base into the region. In 2023, China's investment into Southeast Asia reached US$24 billion, according to a report by McKinsey. These investments highlight the region's growing importance as a global manufacturing hub, especially with markets such as Cambodia, Laos, Thailand and Vietnam. These countries have announced or implemented improvements or expansions of transportation infrastructure that are vital for logistics. For example, in 2021, Laos opened a new railway linking Vientiane to Kunming in China. Thailand has also opened the new DHL International Multimodal Hub, making it easier for shipments to move in, out, and through Thailand across different transportation modes.

"These investments into making rail or road infrastructure better in Southeast Asia means that it is often cheaper and faster than air to ship from China into Southeast Asia. Road freight plays an important role in a multimodal solution. Moving goods through a combination of transport modes can result in faster Door-to-Door (DTD) lead time compared to ocean freight, with substantially lower cost than air freight," said Bruno Selmoni, VP, Head of Road Freight and Multimodal Solutions, Southeast Asia, DHL Global Forwarding.

Government initiatives in the Southeast Asia region have provided opportunities to streamline shipments across borders. Countries within the region are also attempting to resolve border issues, collaborate on improving infrastructure, and streamline procedures.

Initiatives like ASEAN's Customs Transit System, ACTS, aim to streamline the processes and reduce paperwork further. The Customs Administrations of all ten ASEAN Member States collectively endorsed the ASEAN Authorized Economic Operator Mutual Recognition Arrangement (AAMRA) in 2023. This agreement establishes a consistent and transparent trading environment within the member states. AAMRA aligns certification standards with the World Customs Organization (WCO) SAFE...