TAFA Country Report 2008-2009 - FAPAA

TAFA Country Report2008-2009FAPAA 36 th Executive Council MeetingBangkok, Thailand5-6 June 2009T 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 TAFATAFA established: since 1986Address: Thai Airfreight Forwarders Association (TAFA)874 Ploenchit Road, Lumpini, Pathumwan, Bangkok, Thailand, 10330Tel: +66 2254 5780-2 Fax: +66 2254 5784URL: http://www.tafathai.org E-mail: tafa@tafathai.orgTAFA ProfileThai Airfreight Forwarders Association (TAFA) was founded in 1986 as a representative offreight forwarders in the industry and has played an important role in the economicdevelopment of Thailand for many years, especially with the export industry which has theactive support of Government. Apart from airlines, one of the main companies in theforwarding business is the Airfreight Forwarder.The business operations can be divided into many different ways, for example, by plane, bytruck and many other supporting services. Lack of discipline in operating those processes causes alower-than-standard business competition. Cooperation and unity among those fellow forwarders isessential to maintain the honored status of the Association.The Association forms a neutral center which enforces rules and regulations and lifts thestandard 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 createthe best outcome for all concerned.TAFA Objectives1. To promote the Airfreight Forwarding business, support and assist in the problems of itsmembers. This required negotiating with other organizations, in an effort to create mutualbenefits for everyone involved. Significant movements in the world of Airfreight Forwardingbusiness both locally and internationally were followed for the benefit of members.2. To maintain cooperation and information exchange among members and also to acquirestatistical information or documents about the Airfreight Forwarding industry, withapproval from the involved members.3. To raise the standard of Thailand's Airfreight Forwarding Industry and gain internationalacceptance.4. To cooperate with the Government in maintaining the high standard of AirfreightForwarding industry and enforce rules and regulations, ensuring that the operationfunctions properly.5. To compromise business conflicts between members or between members and otherorganizations.6. To take any legal action necessary, to achieve the Association's objectives.7. To establish a non-political movement.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 2

- Committee of Thai Customs and Private Sectors, Thai Customs Department, Ministry ofFinance- Committee of Global Logistics & Trade Facilitation Working Group, Thai Chamber ofCommerce and Board of Trade of Thailand- Committee of Logistic Service Providers of Federation of Thailand IndustryMember of National & International organizationsTAFA is a member of the International Organizations.- Federation of Asia Pacific Aircargo Associations (FAPAA)- 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)Aircargo Business Development in ThailandBangkok Airport Aircargo Statistics 2008 - 2009T 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 4

Thailand e-CustomsThai Customs has developed “e-Customs services” for both e-Import and e-Export Entrieswhich expectedly would be on full function system on April 2008. This is for the sake of beingable to enhance Thai Customs efficiency by using electronic and paperless systems, such as; e-Declaration, e-Manifest, e-Payment, e-Container, e-Licensing, e-Certificate.Moreover, the services as so-called “Single window” and “One Stop Services” also beingdeveloped in order to standardize level of Customs Brokers to meet the international standardin facilitation and security as being defined under World Customs Organization standard.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 5

Default Insurance Program (DIP VIII)DIP VIII has been mutually established by Members of Thai Airfreight Forwarders Association& Members of Air Cargo Business Association on 1 st , October 2008, and will expire on the 1 st ,October 2009. There will be two Insurance policies covering both debts and indemnity.Amount of Agents and Airlineunder DIP V – DIP VIIIAmount of Agentsunder DIP in each yearAmount of Airlines Beneficiaries ineach yearDIP V - 2006 DIP VI - 2007 DIP VII - 2008 DIP VIII -200971 72 75 7844 42 41 40The original policy would cover 45 days of aggregated sales amounting to not more thanTHB100 million (US$2.9 million) per agent, and total THB240 millions in aggregate. However thecoverage was reduced to THB50 million and THB240 million in aggregate after the September11 incidents. Since 2005 the limit has been re-adjusted to THB100 million.The DIP program has been very successful and there are 78 qualified agents and 40 airlinesparticipating in the DIP Program 2009, ensuring over THB20 billion in sale volumes. Since theTAFA ordinary members were selected and monitored closely, we are proud to say that therehas 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 bothairlines and agents alike to ensure financial security for Air Cargo Industry in Thailand. The DIP isalso unique in Southeast Asian regionCustoms Free Zone at Suvarnabhumi AirportSuvarnabhumi Airport going to be emerges as one of the best aviation hub in the region, not only interms of passengers but also in the logistics and air cargo aspect. Now the Thai Customs Departmentsetup the area of cargo in the term of “Customs Free Zone” by attorney of Customs Free Zone Act 1999in order to support national economic and globalization business opportunity.Measures for Aiding Airlines and Business Operators caused by SuvarnabhumiAirport Closure and World Economic CrisisTo alleviate the hardship, the short termed and long-termed measures therefore have beenestablished for all airlines and stakeholders operating at all airports under the AOT's supervisionsuch as- Waive rental fees, facility usage in terminals fees, landing and parking fees for 10 daysduring Airport Closure; 26 November - 5 December 2008.- Reduce rental fee and/or Terminal and Building Service Charge by 10 percent or all tenantsfor the period of 6 months, from January to June 2009.- Extend the payment due date for rental fee and concession fee.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 6

Road Transport Trend for Greater Mekong Sub region: R3-R9The Greater Mekong Sub region (GMS) comprises of six Mekong riparian countries namelyCambodia, Lao PDR, PR China, Myanmar, Vietnam, and Thailand. The Program has started in1992, when the political situation eased in the sub region, with the objective of facilitatingeconomic cooperation and integration among the six countries of the Mekong Sub region.Since then, GMS has evolved gradually and now covers eight (8) priority sectors. It is nowconsidered as a broad-based comprehensive scheme and regarded as a successful model ofregional cooperation.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 7

Publication and ExhibitionTAFA NewsletterTAFA publishes “TAFA Newsletter” 4 issues per year which update not only in the air cargodevelopment in Thailand, Logistics development but announce air cargo news to TAFAmembers as well. This publication provides to all TAFA members, related-organizationand universities library, etc.Payload Asia – November 2008TAFA published the topic of Insurance alternative to bank guarantees: The Thai experienceFAPAA - Payload Asia November 2008 Issue in order to present the success story of DefaultInsurance Program (DIP) in Thailand.Exhibition January 2008 - March 2009- Joined Thailand International Logistics Fair 2008 by Department of Export Promotion on11-13 September 2008.- TAFA was one of the key speaker in the 4 th IATA Air Cargo Claims and Loss Prevention” inthe session of Air Cargo Claims in Freight Forwarders Association on 17-19 September 2008- Join in Bangkok International Gift Fair and Bangkok International House ware Fair 2008 byDepartment of Export Promotion on 14-19 October 2008- The World Air Cargo Event 2009 by Air Cargo Media on 18-20 February 2009 and join theconference as a key speaker in the session of “Regional Development”- Join in Thailand International Furniture Fair 2009 by Department of Export Promotion on11-15 March 2009Training and SeminarIATA/FIATA Dangerous GoodsTAFA is one of the IATA/FIATA Authorized Training Centers. We mainly organize IATA/FIATADGR Initial and Dangerous Goods Regulation (DGR) Recurrent Course from 2007 onward.Course Year Amount of participantsIATA/FIATA Dangerous Goods Regulation 2007 25 personsInitial CourseIATA/FIATA Dangerous Goods RegulationInitial Course2008 - 2009 28 personsT 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 8

Training Courses 2008 – March 2009 : TAFA & Department of skill Development,Ministry of LabourTAFA and Department of skill development, Department of skill Development, Ministry ofLabour have signed MOU on the Human Resources Development in Air freight Business since2006 - 2009 to serve the Industry. This covers both new and old employment which is morethan 100 persons in the year 2008.Training Course 2008 – March 2009Under TAFA and Ministry of Labour1. Supervisory Skill Technique2. Service Mind3. English for Ari Cargo BusinessDurationAugust 2008 : 3 DaysAugust 2008 : 2 DaysMarch : 5 DaysAmount of participants39 persons23 persons30 personsTraining Courses 2008 – March 2009 : TAFA & ACBATAFA arranged the main courses in order to serve members in both Basic Cargo Tariffand Dangerous Goods Regulation.Training Course 2008 – March 2009Under TAFA & ACBA1. Dangerous Goods Regulation (DGR)/ TAFA-NCA-ACBA2. Dangerous Goods Regulation (DGR)/ AMSS3. BASIC CARGO TARIFF /TAFA & CATHAY PACIFIC & ACBADuration2 courses / yearJune 2008 : 5 DaysSeptember 2008 : 5 Days5 courses / yearMarch 2008 : 5 DaysApril 2008 : 5 DaysMay 2008 : 5 DaysJune 2008 : 5 DaysJuly 2008 : 5 Day3 courses / yearJune 2008 : 5 DaysAugust 2008 : 5 DaysNovember 2008 : 5 DaysAmount of participants60 persons85 persons128 personsSeminar 2008 – March 2009TAFA was arranged the seminar for our members to enhance their skill in freight forwardersbusiness such as;- Seminar Air Cargo Claims and Loss Prevention Seminar for Freight Forwarder on 14 January2009 by TAFA, Thai Airways and Thai Star Surety- Seminar of Cooperative Education in Logistics industry on 27 January 2009 by TAFA andSuranaree University of TechnologyT 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 9