5 minute read
Global GSA
— Ismail Durmaz, CEO Group anticipates growth through the new acquisitions planned in 2023
Global GSA Group was founded in 1995 in Amsterdam, the Netherlands, as the first independent cargo General Sales Agent (GSA). The establishment of the Group was in response to the emerging professional development of the air cargo business.
Today, the Group represents some 62 carriers and have offices in 46 countries. The Global GSA Group team comprises of committed and experienced professionals.
In an exclusive interview with Global Supply Chain, Ismail Durmaz, CEO, Global GSA, traces the growth and development of the Group since its founding, its current and anticipated performance and his vision and strategy for future growth.
Global Supply Chain (GSC): Explain the growth of the Global GSA Group since its inception? Ismail Durmaz (ID): As our business grows and our geographic footprint expands, we have to consistently evolve what we do and
Ismail Durmaz,
CEO, Global GSA Group, is the archetype of the self-taught and self-made man.
Originating from Erzincan, Turkey, it is in 1988 in the Netherlands that he first started working for the Dutch forwarder/broker ChartAir Europe BV.
Passionate about the industry, Ismail loves what he does because it enables him to make the impossible possible. This passion will soon lead him to found Global GSA Group in 1995 in Amsterdam. Today, as a company among the top five GSAs worldwide, Global GSA Group has a promising future.
how we do it. The world is facing significant environmental and sustainability related challenges.
That is why we are striving to find new ways to lessen the negative impact on the sector. In the competitive and everchanging air cargo market, outsourcing commercial airline activities provides enhanced specialization, focus and agility, which can result in significant cost savings while achieving the best possible yields and load factors.
Global GSA Group aims to provide the best possible all-service airline representation in the air cargo market, while fully maintaining the airline’s own identity and propositions.
GSC: Which international Airlines specifically are you the GSA for? ID: Currently, we have 62 international airlines in our portfolio. As examples, I can cite the carriers we represent in several regions, such as Avianca, Azul, China Southern, and Turkish Airlines. We are particularly proud to have established mainly long-term relationships with our clients. For example, we have been representing China Southern and Turkish Airlines since the establishment of Global GSA Group back in 1995.
GSC: How did you fare in 2022 and what is your outlook for 2023? ID: 2022 has been a good year for our industry. With the success of the last couple of years, we have seen huge investments in the industry. Many sea freight carriers have entered the air freight industry with huge freighter fleets.
Major international carriers have expanded their cargo capacity and added new routes. But 2022 also showed important indicators for the coming months. As of April 2022, we monitored a decrease trend in yields.
With the market data and intel we have collected, we expect the market to drop even further in Q1 2023.
GSC: What is the extent of the current freight network coverage and what product and service options (for perishables / pharma / cold chain) does Global GSA currently offer? ID: We have 74 offices in 46 countries, covering the most important regions regarding airfreight traffic. We are able to provide services for all commodities that carriers are transporting, and we do so with the highest level of expertise whether it be perishables, pharma or others.
GSC: How important is the Middle East for Global GSA and what is being done to further improve yields on this sector? ID: Middle Eastern countries are very important destinations as they import a lot. Mainly the United Arab Emirates, Saudi Arabia, Qatar and Israel. The principal actions to increase yields are to improve customer experience and after-sales, ensuring that shipments flow as planned.
GSC: You have an office in Sharjah, SAIF Free Zone; are you planning expansion in the UAE and the Middle East? ID: We have an office in Dubai Airport Free Zone (DAFZA). For the moment, we have no plans to expand further into the Middle East. However, expansion decisions are always evolving and are therefore under constant consideration.
GSC: What is your general assessment of the current state of the global air freight industry—is there cause for concern? ID: With Covid-19 and its new variants and the war in Ukraine still ongoing, it is difficult to make long-term projections. But for the short term, we expect the environment to become tumultuous. We advise our carriers to take cautious strategic actions regarding business investments.
We are currently witnessing many large airfreight providers taking steps back when it comes to investments. Scheduled freighter frequencies are being reduced, available capacity is being shared with various regions, and announced new routes and additional capacity are not implemented.
GSC: What are your global expansion plans / strategy and where do you anticipate this growth is expected to come from? ID: We anticipate growth through the new acquisitions planned in 2023. The focus for Global GSA Group is to strengthen our position in the Canadian, US and South American markets.
GSC: Which is your fastest growing sector for the airfreight industry and why? ID: Our operations in Vietnam have been our fastest growing market. Their economy remained stable during the Covid-19 period and played a significant role in the export of Covid-19 tests and masks. Furthermore, they acted as an important gateway for Chinese e-commerce exports.
GSC: What are the opportunities and challenges ahead for Global GSA for the foreseeable short- and long-term future? ID: With the market shifting to pre-covid rates and demands, we are experiencing that more airlines are seeking GSAs’ support. Worldwide carriers that operated their own foreign offices are looking to outsource their operation back to GSAs. We seek to benefit from this trend.
