The logistics industry will continue to face challenges in the coming years

>> Many advantages of developing logistics services

The ASEAN Federation of Forwarders Associations (AFFA) held their AFFA Conference and 32nd AFFA AGM in Vientiane, Lao PDR, with great success.The important event was attended by all 10 AFFA members: BRUFA, CLA, ILFA, FMFF, LITFA, MIFFA, PMTLAI, SLA, TIFFA, and VLA.

AFFA commits to playing a significant role in the logistics industry in the ASEAN region and beyond, under the theme "Boosting Economics and Logistics Industry Within ASEAN and Asia in a Post-Pandemic Era Through Transformation."

The event, which is the most important event in the logistics and transport industry within ASEAN countries, was officially supported by the ASEAN Secretariat and the Ministry of Public Works and Transport of Lao PDR.

Mr. Satvinder Singh, the Deputy Secretary General of ASEAN for the ASEAN Economic Community, had given the highest appreciation to the excellent contribution from AFFA in supporting ASEAN economic development.

He emphasized that the logistics and forwarder industries play a big role in ensuring the excellent movement of goods within the region and beyond and a smooth border crossing process under the ASEAN initiatives.

Mr. Viengsavath Siphandone, the Minister of Public Works and Transportation of Lao PDR, committed to providing sufficient support for ASEAN in the transport field, converting Lao PDR from a landlocked country to a "land linked country," and ensuring ASEAN connectivity to connect with other regions, especially China.

The Chairman of AFFA, Mr. Yukki Nugrahawan Hanafi from Indonesia, expressed his happiness to be part of the development of the ASEAN Region by serving the logistics sector to ensure the fast movement of goods within the regions.

At the conference and annual meeting, all AFFA members can continue the plan to cooperate more and accelerate business development by taking more positive actions, especially in creating a suitable framework of cooperation between the freight forwarding and logistics industries.

There was a good reason to choose Vientiane, Lao PDR, as the host. Lao PDR has started to be the pioneer in connecting with the broader region, especially China, through the Thanalaeng Dry Port.

This is a good reason to foster good movement on the connecting routes.

Freight forwarding and logistics businesses are recently facing an uneasy situation with the turbulence of business patterns in the entire world caused by the COVID-19 pandemic.

By improving and developing our cooperation and improving the capacity through transformation, AFFA members can together have the highest ability to overcome the business uncertainty caused by the COVID-19 outbreak, which, frankly speaking, won’t be easy for all businesses.

Because the COVID-19 pandemic is still ongoing, AFFA must collaborate to reduce and manage the consequences.

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Low international demand for goods, container issues, and rate turbulence from very high freight rates during the pandemic to very low prices now – all of these issues must be addressed collaboratively by AFFA as the ASEAN Secretariat's only registered entity in the logistics and transport fields.

AFFA members and their global partners, particularly those in Asian and Pacific countries, should grow together as logistics and transportation operators.The most important thing is to ensure that this collaboration and cooperation runs smoothly.

AFFA also needs to develop good cooperation on capacity building and IT connectivity. AFFA should have a good understanding that human resources and the application of IT connectivity can become the most important dimensions for the success of their services.

These are the transformation strategies that AFFA should pursue collaboratively.

AFFA must also work to expand cooperation between the ASEAN Secretariat and AFFA, including all country members in trade facilitation and supporting the RCEP in the broader region.

AFFA realizes that the logistics and forwarding industries have great opportunities and a new direction to develop in the upcoming years. Besides that, AFFA also realizes that the challenges will not be easy to face.

The transformation of the business, the mutual collaboration between members and global partners, especially within ASEAN and Pacific countries, the excellent capacity building, and understanding the era of digitalization will very much help the application of all initiatives in the logistics and transport sector that have been honored by the ASEAN Secretariat.

Together with the ASEAN Secretariat, AFFA will be more active in the future concerning ASEAN Trade Facilitation. The initiatives of AFAMT, AFAFGIT, and ACTS are most important to ensure the fast and safe movement of goods between countries within ASEAN, including the ASEAN Authorized Economics Operators Mutual Recognition Agreement (AAMRA), where AFFA members need to improve their capacities.

According to Yukki Nugrahawan Hanafi, the most important need is to continue the cooperation and collaboration in more positive actions.He hopes that in the future, AFFA and it can form a strong business partnership, undergo updated transformation, and engage in fruitful business collaboration.

During the 32nd AFFA Conference and AGM, AFFA members elected Malaysia's Mr. Alvin Chua Seng Wah as the new Chairman of AFFA for the next term, from 2022 to 2024. Alvin Chua stated his intention to continue all of the excellent programs that AFFA has been doing in the past.AFFA will continue to play a bigger role in the logistics industry for a better world.