Geodis’ new Icheon facility responds to e-commerce growth

France-based logistics company Geodis has invested in a new multiuser facility in Icheon, South Korea, to provide additional multimodal logistics solutions in response to the recent surge in demand for supply chain services and solutions to serve growing regional e-commerce. Airfreight to and from South Korea has increased in recent months due to growing volumes of pharmaceutical products manufactured in South Korea and positive changes in consumer buying trends as countries begin to recover from COVID-19 restrictions, Chris Cahill, managing director of Geodis North Asia sub-region, told Air Cargo World . Geodis’ Icheon warehouse facility, completed last month, is located 30 kilometers from another company facility in Anseong, and brings Geodis' logistics footprint in South Korea to 65,000 square meters. The facility provides temperatures ranging from 5 C to 34 C and maintains a maximum humidity of 87%. [caption id="attachment_95345" align="alignright" width="385"] Photo courtesy of Geodis[/caption] The Icheon facility is part of Geodis’ multimodal solution to enable reliable supply chain operations for customers. Airfreight solutions include chartered flights to ensure export capacity from South Korea to Europe and vaccine shipments from production facilities in South Korea arrive on time, said Cahill. “We see strong demand for the intra-APAC trade lanes, given trends in the removal of travel restrictions and the resumption of normal business, moving more rapidly within Asia Pacific,” said Cahill. “At the same time, with disruptions seen in ocean freight as a result of the Suez Canal incident, we anticipate some switching to airfreight for movements in and out of Europe for some products.” The new Icheon facility is 25 km from central Seoul and a 90-minute drive from both Incheon International Airport (ICN) and Port of Incheon. This proximity is intended to attract business from “customers of all industry segments,” said Cahill. The facility establishes a logistics platform that can be scaled up over the next 10 to 15 years, and Geodis expects to double its revenue contract in logistics in the Asia-Pacific region in the next three years, he added. “We observed that, given the restrictions on tourism and travel, consumer spending power was not impacted by the pandemic and the same leisure dollar was channeled into e-commerce and buying in-situ,” said Cahill. “Our customers have certainly experienced a switch to their consumers buying online, though buying in stores, where they were still open for business also remained, and we foresee the change to continue as consumers are able to reach more brand offerings online now.” Geodis was ranked at No. 19 in Air Cargo World ’s most recent Power 25 ranking of the world’s top airfreight forwarders, based on 2019 airfreight tonnage.

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