Damco wins Unilever cross-border contract

[Analytiqa]

New services developed to improve customers’ access to airports and sea ports in Southeast Asia
As per recent reports, Damco has secured two logistics contracts to handle cross-border transport to Cambodia for Unilever. The agreements will see Damco truck an annual volume of several thousand tonnes on behalf of the global FMCG manufacturer.

The contracts, covering Thailand to Cambodia and Vietnam to Cambodia, create a solid foundation for Damco's further expansion of cross-border services, leveraging on Damco's strength in the Indochina region. The new business includes a contract for cross-border transport from five Vietnamese factories to a distribution centre in Cambodia.

In response to capacity and transit time challenges faced by its customers, Damco has developed overland solutions to support both import and export handling for the Cambodia market. These solutions are meant to be more cost-effective, offer higher product security and often have shorter transit times than traditional alternatives.

Additionally, Damco has developed new services that improve customers' access to airports and sea ports in both Vietnam and Thailand. These include greater access to capacity, more frequent sailing options, and direct flights and liner options.

Damco's first Thailand-Cambodia contract with Unilever was awarded in February 2010. The FMCG goods were carried from two Thailand distribution centres to a centre in Cambodia. Damco converted half the volume to containerised trucks, which provide higher security. The move resulted in no damaged cargo and lower cost per carton for Unilever. This attention to service and cost reduction was a driving factor for winning the contract renewal for a second year.