Overview
Singapore’s aviation hub a vital contributor to the country’s economy
The Asia-Pacific region has evolved to become the world’s largest aviation market, with Singapore gaining a reputation as an aviation hub, comprising its airports, airlines and other air freight companies. Singapore’s aviation sector contributed to approximately 6% of the domestic economy’s Gross Domestic Product. The air freight sector is a significant segment of the aviation sector, contributing to Singapore’s aviation hub initiatives.
In 2013, it was noted that the transformation of this aviation hub is a result of several initiatives, which include the development of the Changi Airport Group’s (CAG) Changi East, of 1,080 hectares, that features an air cargo and logistics complex, a mega passenger terminal, a maintenance, repair and overhaul (MRO) hub, and the operationalisation of another runway for civilians. Another initiative was the implementation of the Air Traffic Management (ATM) Master Plan for ensuring the safety and efficiency of air traffic flows at Changi Airport.
Originally, the air freight sector commenced its operations through airports and airlines, with carriers including Singapore Airlines and CAG. Over time, other well-reputed global and local air freight companies such as dnata Singapore, SATS, DHL Singapore, Singapore Post and UPS - Singapore have become a part of the country’s air freight sector.
Regulations for air freight carriers set by government agencies and global organisations enable growth and maintain Singapore’s reputation as an aviation hub
To maintain Singapore’s role as an aviation hub and support the growth of the industry, various organisations and government agencies have implemented regulations and programmes that contribute to these goals.
The Civil Aviation Authority of Singapore (CAAS) is a statutory board set up under the the Ministry of Transport, to ensure and facilitate the growth of the aviation industry and hub as a whole, to manage and promote its safety operations, to provide air navigation services, and to maintain Singapore as a one-stop centre of excellence for aviation know-how and human resource development.
Under its safety operations and regulations, the CAAS provides air freight services for dangerous goods of articles or substances that appear as a hazardous threat to the health, safety, property or environment when they are transported. These goods include household items, consumer products, and industrial supplies such as compressed gas cylinders, lithium batteries or aerosol cans.
Additionally, Singapore’s International Air Transport Association (IATA) is the industry’s Asia-Pacific regional headquarters. IATA Asia-Pacific maintains collaborations with governments, airports, air navigation service providers and regional industry organisations, and oversees many operations for the aviation sector, including industry initiatives for improving infrastructure and cost-effective operations such as OneID and Digital Cargo.
Furthermore, SAAA Cargo Services is the first global centre certified by IATA as a Competency-Based Training and Assessment (CBTA) Excellence Centre that provides dangerous goods training. It provides manifest submission services to Singapore Customs through ACES - an electronic submission of Cargo Manifest Declaration.
Similarly, CAG is the consultant, manager and investor of the renowned Changi Airport’s operations, where air freight operations are carried out at the Changi Airfreight Centre (CAC), a 47-hectare centre comprising four Cargo Agent Buildings (CAB) across 125,000 square metres of office and warehouse space. The buildings offer around-the-clock services and facilities for operators to carry out cargo-related activities within the premises of CAC’s air freight terminals.
Key Trends
Economic Development Board and its depiction on the growth, decline and rise of air freight industry continues to contribute to Singapore’s economy
Due to the growth of the country’s economy, the air freight industry began its evolution in the 1900s through airports and airlines with carriers that swiftly expanded their freighter fleets. In 2012, at Changi Airport, cargo volumes dropped by 3.2%. After a period of seven months, the airport managed to secure a 1.3% rise in tonnage.
Kelvin Wong, an executive director for logistics at the Economic Development Board (EDB), is reported to have noted rapid advancement in the manufacturing and logistics value chain, which incidentally caused a decrease in the size of some individual products - and major static air freight volumes have marked Singapore’s success.
EDB supports the e-freight@Singapore initiative for providing a government-run data centre, a central data exchange for forwarders and carriers. By 2014, Wong reportedly stated that 17 companies had already adopted this initiative, adding that all participants were dedicated to achieving IATA’s goal of reaching 80% of e-freight-enabled routes by 2016. In 2017, over 60 million tonnes of air cargo was delivered, while 2019 saw all airlines adhering to the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) for reporting fuel consumption.
Initiatives launched by government, its agencies and local airport help combat COVID-19 and ensure a sustainable future
From 2020 to 2021, to combat the impact of the COVID-19 pandemic, both CAG and CAAS suspended the planned increase in aviation-related rates, thereby bringing air travel to a halt. IATA also appealed to the Singapore government and other governments within the Asia-Pacific region for assistance and emergency support to be provided to airlines. The pause in the industry, as well as the financial packages that the Singapore government provided, contributed to the industry’s survival.
The impact of the pandemic also led to an acute loss of bellyhold cargo capacity internationally. To maintain the support of vital supplies and supply chains worldwide, freight operators began holding their aircraft in the air for longer durations to tackle shortages in capacity. Many passenger airlines redirected and repurposed their aircrafts for cargo-only flights, even converting some passenger cabins to encompass cargo capacities.
CAG and its partners also aided several flights in transporting essential medical and food supplies, carried out by scheduled and non-scheduled freight operators including Singapore Airlines, British Airways, SF Airlines, SpiceXpress and Swiss International Air Lines. Other air cargo shipments including personal protection equipment, masks, test kits and perishables were also airlifted to and from Changi Airport.
In September 2022, it was reported that Singapore’s latest initiative is to become a global hub for sustainable aviation. A high-level International Advisory Panel’s (IAP) recommendations for decarbonizing the aviation sector were presented and reported by CAAS. The IAP stated that within the airline domain, the volume of global aviation emissions as a result of flight operations and decarbonization will necessitate much action.
It also reported that the sustainable aviation fuel (SAF) supply chain requires motivation, and therefore boosting the demand signals inspires more SAF production. To attain this, the establishment of a buyers club would integrate both early adopters and mass SAF demands. Singapore is a global logistics and business hub with many opportunities for air cargo users and business travellers who require the motivation to become first movers in joining this buyers club. Potential opportunities may arise for future collaborations with regional partners to expand the buyers club to gain a wider demand within the ASEAN region.
Key Statistics
- A compound annual growth rate (CAGR) of -0.5% was noted from 2016 to 2021, when it was reported that in 2021, the air freight sector had total revenues of SGD 4.3 billion.
- In 2020, it was reported that according to the World Bank collection of development indicators, the air transport freight (million ton-km) in Singapore had reached 3,020 million ton-km.
- Year 2021 saw China as one of Singapore’s most important trading partners, with an air cargo volume of about 205.7 thousand metric tons.
- Additionally, 2021 also saw a notable air freight movement at Changi Airport of 1.95 million metric tons, showing significant recovery from 2020.
- In 2022, it was reported that SATS, a subsidiary of Singapore Airlines, would acquire one of the world's largest air cargo logistics providers from the USA-based buy-out firm Cerberus.
Top Singapore MNCs in Freight Forwarder
UPS ASIA GROUP PTE. LTD.
Repeated Company as per the Client -
GEODIS SINGAPORE PTE. LTD.
GEODIS Singapore, established in 1975, is part of the global company which is headquartered in France. It is a Lead Logistics Provider that manages its customers' supply chains by offering end-to-end solutions through its infrastructure, people, procedures and technologies. GEODIS Singapore manages its customers' supply chains through five business lines: supply chain optimization, freight forwarding, contract logistics, distribution and express, and road transport. It offers end-to-end solutions based on its know-how, infrastructure, procedures and information technologies, to assure operational excellence and the highest level of service. GEODIS has ISO 9001 and ISO 14001 certifications.
SCHENKER SINGAPORE (PTE) LTD
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BOLLORE LOGISTICS SINGAPORE PTE. LTD.
Bolloré Logistics Singapore, incorporated in 1983, is a subsidiary of the Bolloré Group of France, and serves as the headquarters for its Asia-Pacific operations. Its expertise in the Perfumes & Cosmetics, Luxury, Aerospace, Healthcare, and Oil & Gas sectors is demonstrated by the continuous development of customized and value-added solutions for its customers. The company provides solutions for logistics, supply chain management, freight forwarding and inventory management. Bolloré Logistics provides a one-stop logistical solution with 14 storage and distribution hubs located across Singapore. With Green Mark Platinum and LEED Gold certifications to its name, Bolloré Logistics was also honoured with the Supplier Performance Excellence Award from DuPont in 2022.
DSV AIR & SEA SINGAPORE PTE. LTD.
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DHL GLOBAL FORWARDING (SINGAPORE) PTE. LTD.
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KUEHNE + NAGEL PTE. LTD.
Established in Singapore in 1994, Kuehne+Nagel is part of the global logistics company which is headquartered in Switzerland. The company provides road and rail transportation, air and sea freight, inbound logistics, supply chain consulting, insurance, project logistics and packaging solutions, with a strong emphasis on integrated logistics solutions. Kuehne+Nagel has evolved from a traditional shipping company to a global logistics partner by providing highly specialized solutions to major sectors throughout the world. The company’s Net Zero Carbon effort seeks to achieve carbon neutrality for sea freight services by 2030.
NIPPON EXPRESS (SINGAPORE) PTE LTD
Incorporated in Singapore in 1973, Nippon Express is part of the global network of the Japan-based logistics company. The company's area of business involves the organization of the transportation of freight and cargo. It delivers one-stop business solutions to link people and enterprises across national and regional boundaries, through a diversified mode of transportation via land, air and sea in the freight forwarding, travel, removal, heavy haulage, and construction business areas. Nippon Express works with its customers to handle all logistical challenges in the automotive, electrical and telecommunications, fashion and retail, food, aerospace and aviation, railway, and pharmaceutical industries.
EXPEDITORS SINGAPORE PTE LTD
Incorporated in 1981, Expeditors is a multinational logistics firm which is headquartered in the US. Customs brokerage, vendor consolidation, cargo insurance, time-definite transportation services, order management, warehousing and distribution, and bespoke logistics solutions are among the services it offers. The company provides a comprehensive range of global logistics services, including a smooth international network of people and effective information systems to enable the strategic positioning of transportation and goods. Expeditors made its first appearance on the Fortune 500 list in 2006. The company’s Project Cargo division handles special project shipments that are routed through air, water and ground transportation.
CEVA LOGISTICS SINGAPORE PTE. LTD.
Established in 1973, CEVA Logistics Singapore is a supply chain management firm. It is part of the global CEVA Logistics network. The company provides end-to-end e-commerce service offerings to large and medium-sized national and multinational enterprises. These services range from inbound supplier management and warehousing fulfilment, to transport and customs services, and last mile and reverse logistics. The company targets a wide range of market sectors, including technology, retail and consumer, industrial, healthcare, publishing, aerospace, and oil and gas. CEVA Logistics was acquired by GEFCO in 2022.
Top Singapore Large Local Enterprises in Freight Forwarder
SAMUDERA SHIPPING LINE LTD
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SINGAPORE AIRLINES CARGO PTE LTD
Established in 2000, Singapore Airlines Cargo is a subsidiary of Singapore Airlines Limited. Singapore Airlines Cargo provides air freight transportation services. In addition, the company manages cargo capacity on passenger aircraft and has a specialized freighter fleet. Among the services offered by Singapore Airlines Cargo are airmail, charter services, dangerous items, live animals, perishable cargo, pharmaceutical cold chain, urgent shipments and precious cargo. Headquartered in Singapore, the company also has specialized and trained personnel to manage a variety of items on its aircraft, ranging from rare animals to pharmaceutical supplies.
YCH GROUP PTE LTD
Incorporated in 1995, YCH Group is one of Asia’s supply chain and logistics giants, partnering with some of the world’s largest firms in over 100 locations. Its team of supply chain specialists, logisticians, technology disruptors and planners collaborate as a renowned 7PL supply chain and logistics provider, to reach the common objective of becoming the partner of choice for integrated end-to-end supply chain management. YCH Group has a presence in 12 countries in the Asia Pacific, including Greater China, India, Malaysia, Thailand, Indonesia, the Philippines, Vietnam, Australia and Korea. YCH Group won the eSCM Award in 2003, and the ZDNet Smart 50 Award in 2006.
VIBRANT GROUP LIMITED
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CWT PTE. LIMITED
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NINJA LOGISTICS PTE. LTD.
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ST LOGISTICS PTE. LTD.
Established in 2004, ST Logistics is a Singapore-based company that offers Supply Chain Management and Integrated Logistics Solutions to the defence, government, and healthcare sectors. ST Logistics specializes in high-quality supply chain and logistics services. The company’s customers rely on its end-to-end supply chain capabilities in sourcing and procurement, freight management, warehousing, and last mile distribution services. ST Logistics was named an Honourable Laureate of the Singapore Government’s SkillsFuture Employer Award in2018, and in 2021, it was awarded the Excellence in HR Innovation (Silver Award) by Human Resources Online.
POH TIONG CHOON LOGISTICS LIMITED
Incorporated in 1969, Poh Tiong Choon Logistics is one of the first companies in Singapore to provide container storage services. Poh Tiong Choon also pioneered bulk cargo vessel trimming operations in the island. It was also ahead in heavy haulage operations, playing a critical role in Singapore’s early industrial development. Poh Tiong Choon transported infrastructure freight such as turbines, generators, and reactors for power plants, and enormous concrete beams for road and bridge construction. In 2007, the ESCM council certified Poh Tiong Choon as eSCM. It is also one of eight Singapore companies to be approved under the Secure Trade Partnership Programme (STP).
CHASEN HOLDINGS LIMITED
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WORLDWIDE GSA PTE. LTD.
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Top Singapore SMEs in Freight Forwarder
M & P INTERNATIONAL FREIGHTS PTE. LTD.
Founded in 2006, M&P International Freights provides full-service international freight forwarding to both importers and exporters. M&P International is a one-stop shop for freight shipping services, and provides a diverse and innovative range of services. These include container trucking, chartering, transshipment, pick and pack logistics, freight logistics, and more. M&P International Freights serves a wide range of clients and each of their distinct shipping requirements – which include Project Cargo, Oil & Gas, Machinery & Equipment, and Ship Spares – from its central location at one of the world's most efficient transhipment hubs with free-trade zone entitlements. M&P International Freights is SLA, MTO and FIATA certified.
ASM LOGISTICS (S) PTE. LTD.
Established in 2009, ASM Logistics is a non-asset-based supply chain logistics company headquartered in Singapore. ASM Logistics offers International Freight Products and Multimodal Shipping Solutions that are personalized to the specific needs of each client. Because of its significant global relationships with shipping lines, airlines and road transporters, ASM offers highly competitive freight rates and a service that exceeds expectations. ASM Logistics has offices in Thailand, Vietnam and Malaysia. ASM Global Logistics, a new office in Mauritius, was opened in late 2019. ASM Logistics was recently acquired by the integrated logistics provider, the Santova Group.
SINGAPORE TRANSPORT SUPPLY SERVICE (PRIVATE) LIMITED
Incorporated in 1962, Singapore Transport Supply Service provides dependable logistics services to its loyal customers. Singapore Transport has expanded its logistics and supply chain management services to include warehousing, distribution, transportation, container depot storage, cargo handling, and international freight forwarding. Although it has gained the internationally recognised ISO 9002 certification, the company continues to pursue excellence. Singapore Transport operates as a logistics hub, assisting overseas clients in storing and consolidating their shipments in Singapore. For local distribution within Singapore and Malaysia, it operates through its sister company Warehouse Logistics Net Asia, which has offices in Malaysia and Indonesia.
JACOBSON GLOBAL LOGISTICS (SINGAPORE) PTE. LIMITED
Founded in 1994, Jacobson Global Logistics (JGL), headquartered in Singapore, is a leading 3PL group with a strong presence in Southeast Asia. Jacobson Global offers warehousing, air and ocean freight arrangements, domestic and international distribution, as well as value-added upstream supply chain services. The company also provides extensive coverage throughout Southeast Asia, with offices in Malaysia and Vietnam, as well as exclusive partners in Indonesia, Thailand, Cambodia and Myanmar. Jacobson Global provides accessibility and connectivity to all of its clients through the international network that has been built since its inception.
SILK EXPRESS FREIGHT PTE LTD
Silk Express Freight, which was incorporated in Singapore in 1994, is a family-owned company. Integrated transportation and charter transportation are also handled by Silk Express. The company offers DAP and DDP Nationwide, Competitive Export Air and Ocean Freight Rates, Customs Brokerage, Aerospace Engines and Spare Parts (AOGs), Exhibition and Trade Shows, Military Goods, and PODs on all Shipments. Aside from general cargoes, Silk Express also handles several other types of cargoes as part of the company’s additional services. Silk Express has offices in Malaysia and Japan.
THE NATIONAL FORWARDER (SINGAPORE) PTE. LTD.
Established in 1991, The National Forwarder (Singapore) is a leading freight forwarding firm. By leveraging its skills in overcoming the challenges of ship supplies in transit, the company maintains the operational preparedness of 50 boats. Sea freight, airfreight, international routing, inventory management, odd-sized cargoes, customs brokerage, and drone-enabled delivery are among the services offered by The National Forwarder. Apart from nautical cargoes, the company also handles common goods such as electronics, medications and even seafood. The National Forwarder partners with prominent airlines such as Singapore Airlines and Emirates to provide booking priority and special pricing.
EES FREIGHT SERVICES PTE LTD
EES Freight Services was incorporated in 1983. It provides logistical services to domestic and international clients. EES Freight works from three offices and has its own vehicle fleet. The company's sea freight headquarters and sales and marketing offices are conveniently located near the harbour and most major shipping lines. EES Freight’s air freight division, which includes a warehouse in the free trade zone, is located within the airport. The company provides consolidation services, project management, storage and distribution, and customs clearance services. It also deals in printed materials, DG, events and exhibitions, projects, marine ship spares and automobiles. EES Freight has been honoured with the Singapore SME 100 Award.
GFS FORWARDING PTE. LTD.
Established in 2008, Global Freight Solutions (GFS) Forwarding is a full-service freight forwarder in Singapore, providing comprehensive logistics services in global air and ocean freight. GFS Forwarding has formed alliances and collaborations with a global network of agencies to deliver services to locations such as China, the UK and the US. The company is well equipped with adequate warehouse facilities in Singapore. GFS' experienced and knowledgeable workforce are all members of the International Air Transport Association (IATA) and the International Federation of Freight Forwarders Associations (FIATA). Furthermore, GFS is registered with the Regulated Air Cargo Agent Regime (RCAR).
AGI FREIGHT SINGAPORE PTE LTD
Incorporated in 1998, and formerly known as Interport Jet Express, AGI Freight Singapore was renamed as such in January 2001. AGI Freight Singapore delivers personal, non-third-party services to primarily exporters, importers, and business users in the spheres of tailored and localized cargo space management, operating as an indirect distribution channel for the clients. AGI Freight Singapore provides a wide range of services, including but not limited to air and ocean consolidation, FCL/LCL, transportation, customs brokerage, and warehousing. AGI Freight Singapore was honoured with the prestigious SME 500 Award in 2009 and 2010.
TRANS GLOBAL (S) PTE. LTD.
Trans Global (S), incorporated in 2003, is an international freight forwarder specializing in overall logistics, and project or oversize cargoes. It has expertise in international freight forwarding, total logistics, land transport services, removals services, shipping and mailing services, and project cargo handling. Trans Global offers customized solutions to fulfil customers' needs in ocean, air and land transportation. Trans Global has received QMS ISO 9001:2008 and the bizSAFE 3 accreditation. Trans Global is a member of the Singapore Logistics Association, and the Singapore Chinese Chamber of Commerce & Industry (SCCCI).
Top Singapore Fastest-Growing Companies in Freight Forwarder Sector
TRANS GLOBAL PROJECTS LOGISTICS PTE. LTD.
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PSA CARGO SOLUTIONS (SEA) PTE. LTD.
Established in 2018, PSA Cargo Solutions is part of PSA International, a global port organization with more than 50 facilities across 26 countries. PSA Cargo Solutions provides unique port-centric cargo solutions that enable cargo owners and service providers to manage their cargo flows for increased efficiency, agility and resilience. PSA Cargo Solutions has launched a suite of Value-Added Services to assist cargo owners, including Priority Discharge, Top Stowage, Express Delivery, Flexi-Alerts and Fast Connection Management for containers transiting through Singapore. The company’s expanded range of services now includes supply chain management services such as 4PL, Lead Logistics Provider (LLP), and PO Management, transportation, and trade compliance management.
SAL LOGISTICS (SG) PTE. LTD.
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EV CARGO GLOBAL FORWARDING PRIVATE LIMITED
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TAURUS ONE PRIVATE LIMITED
Janio Technologies, incorporated in 2018, is a cross-border logistics platform that offers integrated end-to-end logistics solutions in South-East Asia. The company combines technology and human touch to offer a dynamic combination of solutions. Janio offers solutions whether it's local or cross-border, B2C or freight, with or without warehousing and fulfilment. It provides end-to-end e-commerce logistics solutions, tailoring the optimal solutions for organizations. Janio won the LogiSYM Supply Chain Top 10 and Singapore Rice Bowl Startup Awards. The company offers international shipping solutions throughout Asia, including China, Hong Kong, Indonesia, Malaysia, the Philippines, Thailand, Vietnam, Australia and New Zealand. Janio Technologies is now known as Taurus One.
ST LOGISTICS PTE. LTD.
Established in 2004, ST Logistics is a Singapore-based company that offers Supply Chain Management and Integrated Logistics Solutions to the defence, government, and healthcare sectors. ST Logistics specializes in high-quality supply chain and logistics services. The company’s customers rely on its end-to-end supply chain capabilities in sourcing and procurement, freight management, warehousing, and last mile distribution services. ST Logistics was named an Honourable Laureate of the Singapore Government’s SkillsFuture Employer Award in2018, and in 2021, it was awarded the Excellence in HR Innovation (Silver Award) by Human Resources Online.
RULEWAVE LOGISTICS SINGAPORE PTE. LTD.
Rulewave Logistics Singapore, established in 1982, is a global logistics company that provides an all-inclusive service comprising warehousing, international freight forwarding and project management. Rulewave Logistics is an expert in the global transportation of chemicals, drilling solutions, and OCTG for the oil and gas exploration industry. The company's experience in this demanding environment has laid the groundwork for the level of service that it offers to its customers. Rulewave Logistics has offices in the Netherlands, the United States, the United Arab Emirates, Turkey, Azerbaijan and Malaysia. It is well-equipped to provide a one-stop-shop solution, but it also provides partial services for the various phases of the supply chain.
NINJA LOGISTICS PTE. LTD.
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MERIDIAN PROJECT LOGISTICS PTE. LTD.
Incorporated in 2016, Meridian Project Logistics is headquartered in Singapore and dedicated to supply chain logistics. It offers transportation solutions for OOG, Heavy Lift and complex cargo in difficult and challenging places. The company has offices in Myanmar, Malaysia, Thailand, Indonesia, Cambodia, Vietnam, Bangladesh, the Philippines, Pakistan and Sri Lanka. Meridian Project undertakes a thorough route analysis from port to site or site to port, in order to analyze and determine the alternative routes available for the safe and secure transportation of specific items. The company provides Supply Chain Management, Consulting, Route Survey, Chartering, Transportation Services and Heavy Lifting Services.
BANSARD INTERNATIONAL (SINGAPORE) PTE. LTD.
Bansard International (Singapore), incorporated in 1963, is a multimodal freight forwarding firm, and a member of IATA and FIATA. Bansard International implements air freight, sea freight, and international road solutions, as well as logistics and e-logistics solutions, to help customers manage their supply chains more effectively. The company guides organizations through the process while handling the numerous supply chain stakeholders. Bansard International’s offerings are process of import/export, customs clearance, shipping paperwork, warehousing and supply chain management, sorting, labelling, (re)packing, quality control, PO management, IT systems, cross-border e-logistics, and express and hand-carry services.
