Air Cargo Trailer Operations Between Finland And The Netherlands : Can Freight Frame Oy Enter The Competition?

Tampere University of Applied Sciences Degree programme in International Business Green Supply Chain Management TATU SELIN: Air cargo trailer operations between Finland and the Netherlands. Can Freight Frame Oy enter the competition? Bachelor's thesis 49 pages, appendices 17 pages. January 2014 This research evaluates the possibility for Freight Frame to expand their business in the field of logistics. In more detail, the research analyses the possibility for Freight Frame to enter the market of air freight trailer operations between Finland and the Netherlands. The aim is to find out if the market entry is possible overall, it’s feasibility in a financial perspective, and what kind of new investments it would obligate from Freight Frame. This thesis was carried out as a study for Freight Frame Oy in order to survey the air freight cargo operations in trailer traffic. These road feeder services could increase especially the turnover for the frigo-trailer –traffic, as the occupancy of southbound trailers is too low. The data for the research was gathered from Finnish supervisory authorities, such as Trafi, Finavia and the Customs, and from a personal interview at a major Finnish air cargo operator . Theoretical basis for this research lies in Supply Chain Management, and in more detail in high-value and express airand road freight services. The approach is from the transport company’s perspective. Could Freight Frame provide road feeder services for air freight operators in a financially feasible manner? The result from the research is that it is possible to enter the market, but only at first as a subcontractor to a larger air freight road feeder service provider. This would also mean huge investments for Freight Frame and the need to have extensive negotiations with an existing road feeder service provider to achieve a contract. The results indicate that in case of accomplishing a contract with an existing road feeder service provider, the investments would pay off in a couple of years. The results indicate also, that air freight operators, who buy these road feeder services, are willing to welcome new operators to the business, as the current prices are steep from their perspective. This thesis includes confidential information that has been removed from the published version on the commissioner’s request.