SINGAPORE STAGE FOR ECS GROUP

ECS Group has been operating in the Asia Pacific region for almost 20 years, establishing itself as a significant player in the industry. The decision to base ECS (Asia Pacific) in Singapore was strategic, leveraging the city’s excellent connectivity and business-friendly environment. During this time, the company has formed strong relationships with local partners, allowing it to navigate the region’s unique dynamics, comments Adrien Thominet, chairman of Paris-based aviation business services provider ECS Group.

“China plays a crucial role in the airfreight industry, and ECS Group acknowledges its importance,” says Thominet. “The company has adapted to challenges, including the COVID-19 pandemic, and is working towards restoring business levels. With a combination of local and expatriate staff, ECS Group has integrated into the regional business atmosphere successfully. Overall, ECS Group’s long-standing presence and expertise makes it a key player in the Asia Pacific airfreight market.

“There was significance in basing ECS (Asia Pacific) in Singapore. Singapore serves as a natural gateway to Southeast Asia and has historical ties to our initial acquisitions in the region. Additionally, we have been the Global Service Agent (GSA) for DHL for over 15 years, and Singapore is their strongest hub in the region. Therefore, we wanted to ensure alignment with their organisation.

“The countries in the region that provides us with the highest level of business activity are Vietnam and India. On the other hand, Indonesia represents the country with the smallest levels of business activity. It’s worth noting that Cambodia has been facing some export issues since the end of 2022, but it is gradually recovering,” he adds.

Some 20% of ECS Group’s global business is created by the Asia Pacific region. The business atmosphere in the Asia Pacific region can be “dynamic and diverse, with varying levels of competition and barriers to entry,” says Thominet.

“It is important to note that market conditions have been relatively weak since the beginning of the year, leading to increased competition among businesses operating in the region. Additionally, each country in the region has its own unique culture and regulatory framework, which can present challenges and opportunities for businesses. Having strong local expertise is crucial in maximising production and adapting to specific local contexts. ECS Group, with its experienced local teams, understands the importance of navigating these dynamics and leveraging their knowledge to deliver tailored solutions to meet the specific needs of each market.”

Despite the challenges, ECS Group has positioned itself as a key player in the industry by fostering strong relationships with local partners and adapting its approach to different markets. The company’s “agility and adaptability” enable it to excel in the Asia Pacific region, overcome barriers to entry, and provide high-quality services to its airline partners.

Chinese influence

China plays a significant role in the region’s airfreight industry. As the world’s second-largest economy and a major manufacturing and trading hub, China generates substantial air cargo volumes. Its strong export-oriented industries and global supply chain connections contribute to a significant portion of airfreight activities in the Asia Pacific region. Consequently, any disruptions or changes in China’s economy or trade patterns can have a considerable impact on the overall airfreight market in Asia Pacific.

Since the beginning of 2023, China has reopened its international trade, and this has had a direct impact on regional volumes within Asia. The resumption of international exchanges by China has significantly influenced trade dynamics in the region, leading to increased business activity and trade flows within Asia. This shift in China’s trade policies has been perceptible in the overall volumes and has played a significant role in shaping the business landscape in the Asia Pacific region.

Long-term commitment

Thominet says: “ECS Group opened its first branch in the Asia Pacific region almost 20 years ago, demonstrating its long-term commitment to the region. At ECS Group, we prioritise the employment of local staff at our regional operations. We believe in harnessing the expertise and knowledge of our local teams who possess a deep understanding of the local markets, culture, and language. By having a strong local presence, we can tailor our services and solutions to meet the specific needs of our customers in the Asia Pacific region.

“Additionally, as part of a highly organised and globally integrated group, ECS Group brings a wealth of business solutions and robust security measures to the region. Our extensive network and industry-leading practices enable us to provide efficient and secure cargo services. This combination of local expertise and the support of a well-organised group allow us to deliver high-quality services and maintain a strong presence in the Asia Pacific airfreight market,” Thominet concludes.