Thai Airfreight Forwarder Association Page 1

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1 TAFA Country Report FAPAA 38 th Executive Council Meeting Bangladesh June 2011 Thai Airfreight Forwarder Association Page 1

2 About TAFA TAFA established: since 1986 Address: Thai Airfreight Forwarders Association (TAFA) 874 Ploenchit Road, Lumpini, Pathumwan, Bangkok, Thailand, Tel: Fax: URL: E mail: tafa@tafathai.org TAFA Profile Thai Airfreight Forwarders Association (TAFA) was founded in 1986 as a representative of freight forwarders in the industry and has played an important role in the economic development of Thailand for many years, especially with the export industry which has the active support of Government. Apart from airlines, one of the main companies in the forwarding business is the Airfreight Forwarder. The business operations can be divided into many different ways, for example, by plane, by truck and many other supporting services. Lack of discipline in operating those processes causes a lower than standard business competition. Cooperation and unity among those fellow forwarders is essential to maintain the honored status of the Association. The Association forms a neutral center which enforces rules and regulations and lifts the standard of services. Additionally, the Association also acts as a representative for all the forwarders. It negotiates with other Government and Non Government Organizations, endeavouring to create the best outcome for all concerned. TAFA Objectives 1. To promote the Airfreight Forwarding business, support and assist in the problems of its members. This required negotiating with other organizations, in an effort to create mutual benefits for everyone involved. Significant movements in the world of Airfreight Forwarding business both locally and internationally were followed for the benefit of members. 2. To maintain cooperation and information exchange among members and also to acquire statistical information or documents about the Airfreight Forwarding industry, with approval from the involved members. 3. To raise the standard of Thailand's Airfreight Forwarding Industry and gain international acceptance. 4. To cooperate with the Government in maintaining the high standard of Airfreight Forwarding industry and enforce rules and regulations, ensuring that the operation functions properly. 5. To compromise business conflicts between members or between members and other organizations. 6. To take any legal action necessary, to achieve the Association's objectives. 7. To establish a non political movement. Thai Airfreight Forwarder Association Page 2

3 TAFA Members 2011 Current TAFA Membership Registration Ordinary Member Associate Member Total 140 Companies 99 Companies IATA Member : 62 Non IATA Member : Companies IATA Member : 6 Non IATA Member : 35 TAFA Committee 2011 Title Name Surname Company Chairman Mr. Kovit Thanyarattakul Multi Air Services Co., Ltd. Vice Chairman Mrs. Urai Choothakarn Union Freight Forwarder Co., Ltd. Vice Chairman Mr. Chairat Pitpisutkul Future Transport Int l Co., Ltd. Vice Chairman Mr. Voratat Tantimongkolsuk CTI Logistics Co., LTD Vice Chairman Mr. Somchai Thammalelakul Agility Co., Ltd. Committee Representatives TAFA also liaises closely with the Thailand Government and Non Government Agencies in the aspect of Air Cargo Business and participate in industry related committees such as; Working group of Asian Transportation and Logistics, Ministry of Transport Subcommittee of the Logistic Trade Facilitation, Ministry of Commerce Committee of Thai Customs and Private Sectors, Thai Customs Department, Ministry of Finance Committee of Global Logistics & Trade Facilitation Working Group, Thai Chamber of Commerce and Board of Trade of Thailand Committee of Logistic Service Providers of Federation of Thailand Industry Thai Airfreight Forwarder Association Page 3

4 Member of National & International organizations TAFA is a member of the International Organizations. Federation of Asia Pacific Aircargo Associations (FAPAA) The International Air Cargo Association (TIACA) International Federation of Freight Forwarders Associations FIATA) TAFA is a member of the National Organizations Thai Chamber of Commerce and Board of Trade of Thailand Thai Logistics Service Provider (TLSPs) Thai Airfreight Forwarder Association Page 4

5 Aircargo Business Development in Thailand Bangkok Airport Aircargo Statistics 2010 Thai Airfreight Forwarder Association Page 5

Thailand Air Export 2010 2010 was a year that defied many predictions.

6 Thailand Air Export was a year that defied many predictions. It saw the country overcome many obstacles that could have derailed the recovery from the global downturn, through 2011 will surely present additional challenges. By booming exports is the key factor that able to drive the economy forward, the fact that much of this progress was made in a climate of crisis was more unexpected. The political situation deteriorated in May, when security forces moved in to break up long running anti government protests that had shut down much of central Bangkok leading to street violence and casualties. Despite scenes of fighting in the streets (images which were beamed around the world) Thailand s crucial tourism industry did not take the hit that many had forecast on the other hands the Aircargo export market in the year 2010 was much better than previous year when compared to the tourism industry. Thai Airfreight Forwarder Association Page 6

7 Exports of goods and services outperformed expectations in Although a slowdown was expected in the second half of 2010 following the sharp rebound (and inventory restocking) of late 2009 and early 2010, merchandise exports remained firm and even expanded in the fourth quarter, helped by higher demand for agricultural products and vehicles. Service exports also performed well against the backdrop of the political turmoil of April and May, and by December tourist arrivals were already at a new historical high. External demand is likely to remain supportive in 2011 thanks to vehicle exports to ASEAN and Oceania, and fast growing demand from East Asia for both goods and services. (As an indication, tourist arrivals from China were up 45 percent in 2010 nearly four times the overall rate of increase). Nevertheless, because the recovery in advanced economies (which account for 70 percent of global import demand) is still expected to proceed at a modest pace, growth in external demand will remain below historical averages Air Export and Logistics Network Optimization TAFA has been invited to be a working group in National Business Plan under the Ministry of Commerce to set up and develop an integrated logistics network and promoted Suvarnabhumi Airport as a logistics hub of this region in terms of gathering, transferring and distributing merchandise, both regionally and internationally, in such a way that the country is linked with overseas markets through the development of, among other things, feeder systems, motorways, logistics centers/distribution centers and container yards at strategic locations throughout the country. Such centers would include Thailand s business gateways or regional manufacturing and trading centers, and Suvarnabhumi Airport City, where local and internationally competent private operators will collaborate in joint ventures while co managing the program. Default Insurance Program (DIP) The resolution from the TAFA Extraordinary General Meeting 1/2011 in February: Current situation 1. Maintain the DIP policy of 100 million baht. 2.The air cargo agents under DIP, which have sales volume within 45 days credit term exceeding 100 million baht, will be demanded to provide the extra B/G in covering the exceeding sales amount by the DIP airlines concerned based on each airlines requirement. Those said air cargo agents confirm to provide the B/G to each DIP airlines concerned without any problem. Since the TAFA ordinary members were selected and monitored closely, we are proud to say that there has not been one single claim from participating airlines under this program. The Default Insurance Program (DIP) has also proved to be an effective solution for both airlines and agents alike to ensure financial security for Air Cargo Industry in Thailand. The DIP is also unique in Southeast Asian region Thai Airfreight Forwarder Association Page 7

Exhibition April 2010 April 2011 Thailand International Furniture Fair 2010 by Department of Export Promotion on 10 14 March 2010 Bangkok International Fashion Fair & Bangkok International Leather

8 Publication and Exhibition TAFA Newsletter TAFA publishes TAFA Newsletter 5 issues per year which update not only in the air cargo development in Thailand, Logistics development but announce air cargo news to TAFA members as well. This publication provides to all TAFA members, related organization and universities library, etc. Exhibition April 2010 April 2011 Thailand International Furniture Fair 2010 by Department of Export Promotion on March 2010 Bangkok International Fashion Fair & Bangkok International Leather Fair 2010_by Department of Export Promotion on 1 4 April 2010 Bangkok International Gift Fair and Bangkok International House ware Fair 2010_by Department of Export Promotion on April 2010 Thailand Auto Parts & Accessories 2010_by Department of Export Promotion on 28 April May 2010 Thailand International Logistics Fair 2010_by Department of Export Promotion on 7 11 October 2010 Made in Thailand 2011_by Department of Export Promotion on 9 13 March 2011 Thailand International Furniture Fair 2011_by Department of Export Promotion on March 2011 Bangkok International Gift Fair and Bangkok International House ware Fair 2011_by Department of Export Promotion on April 2011 Bangkok International Fashion Fair & Bangkok International Leather Fair 2011_ by Department of Export Promotion on April 2011 Thai Airfreight Forwarder Association Page 8

About TAFA. TAFA Profile

About TAFA. TAFA Profile TAFA Country Report 2008-2009 FAPAA 36 th Executive Council Meeting Bangkok, Thailand 5-6 June 2009 T h a i A i r f r e i g h t F o r w a r d e r A s s o c i a t i o n Page 1 About TAFA TAFA established: