Air Incheon to fly first 767F for Samsung… Is Samsung Air the next Amazon Air?

Next week, Seoul-based Air Incheon will begin operating a 767-300BDSF (25202) for Samsung SDS/Cello. The aircraft is the first of two 767 freighters to be leased from ATSG West Leasing (a subsidiary of Air Transport Services Group). The second unit is expected to follow in August. Cargo Facts believes, however, that should this operation prove to be a success, Samsung SDS, like e-commerce giant Amazon and several freight forwarders, could choose to pursue direct control of additional own-operated freighter capacity.

But does Samsung really need that much capacity? One could be forgiven for thinking that the planned freighter service between Seoul Incheon and Hanoi will be utilized solely for the multinational conglomerate’s own transportation purposes – after all, the cell phone, appliance, and home electronics manufacturer’s supply chain regularly uses air freight to move components and sub-assemblies around the world. Samsung SDS main product, “Cello” does indeed manage the supply chains of Samsung-affiliate companies, but it also provides integrated end-to-end supply-chain services to third-party customers as well.

As a data-driven supply chain platform, Cello offers many of the same services typically offered by third-party logistics providers. The cloud-based service incorporates 9 “suites” offering capabilities that include freight-forwarding, route optimization, warehouse management, risk detection, and more.

Perhaps the biggest opportunity for airfreight, however, stems from the analytics suite. Harvesting data from both Samsung’s own supply chain, and from the experience of others, enables predictive analytics that are based on the entire end-to-end supply chain. In many scenarios, and for some sales models, air freight becomes part of a more efficient supply chain. If platforms like Cello can to some degree forecast demand and market rates, it suddenly becomes appealing to control additional capacity.

Then again, it is no secret that capacity ex-Vietnam is quite tight, and maybe the size of Cello’s own-controlled capacity will remain small in scale.

Those interested in hearing more about Air Incheon or ATSG are invited to join us at Cargo Facts Asia 2018, where delegates from both companies will be present. The event will be held 23-25 April at the Mandarin Oriental Pudong. For more information, or to register, visit www.cargofactsasia.com.