Aerospace Added to Consumer Goods Offering of Bollore Logistics

Concern for global freight forwarding and warehousing Bollore Logistics has witnessed the uncertainty of Covid-19’s influence on its Asia-Pacific logistics operations have a wide range of consequences for its fast-moving consumer goods (FMCG) sector. While some divisions were able to respond quickly, others had delays, and the need to ship materials to MRO operations in a number of places around the world caused delays that Bollore would have preferred to avoid.

Bollore manages over 2,000 personnel and close to 250,000 square feet of warehouses at 15 Regional Distribution Centers (RDCs), many of which have the ability to add value through light manufacturing, from its regional headquarters in Singapore. Aerospace, perfume and cosmetics, healthcare, fashion, and flavour and fragrances are all important vertical markets.

Our turnover in Singapore is over €300 million ($340 million), split 50/50 between freight forwarding and international cargo, as well as logistics and warehousing. During Covid-19, container rates on global shipping lines increased by a factor of six. “It’s harder to say on air freight,” he said, “but it’s in the same range.” Changes in capacity levels on the Singapore-Shanghai route have an impact on pricing. Singapore’s market pricing to the United States has climbed by a factor of more than six.

The majority of the issues have emerged as a result of unpredictably harsh border controls in destination markets. Bollore witnessed volume decline in some areas, but in others, such as flavour and fragrances and healthcare, it had to quickly ramp up capacity. New rules have been implemented. While Hong Kong can compete as a base for airlines, Marcerou feels Singapore remains the indisputable regional hub for MRO. The pandemic, on the other hand, has cast a pall over the situation.