Teleport and Etihad Cargo have partnered to inject cargo capacity and frequency into their respective cargo networks between Southeast Asia and the Middle East, with plans to increase frequency in the near future.

The Kuala-Lumpur-headquartered integrated logistics provider and the cargo and logistics arm of Etihad Aviation Group, the UAE's national airline, said the move is in response to growing airfreight demand and trade between the two regions.

Trade between the Gulf nations and emerging Asian nations continues to show high growth momentum, surging 35% from US$383 billion in 2021 to US$516 billion in 2022.

It is expected to reach US$757 billion by 2030, outstripping the growth rate with Western nations such as the US, UK and the Euro Area.

Teleport and Etihad Cargo noted that, at the same time, air freight demand continues to grow at a double-digit rate across all regions, having risen 14.1% as of June 2024.

"Since signing the partnership in May this year, Teleport has deployed its freighters for Etihad to ship machines, raw materials, phones and chip sets, among others, from Ho Chi Minh to Kuala Lumpur twice a week, with onward connection via Etihad's capacity to Abu Dhabi and beyond," the announcement said.

"This partnership also enables both parties to maximise the available passenger belly capacity especially out of leisure hubs such as Bali and Phuket, by leveraging on each other's network strength," it added.

Etihad will deepen its connectivity in Southeast Asia on the back of Teleport's extensive network in the region, while Teleport leverages Etihad's strong global network to expand its network reach into the Middle East, Europe, the Americas and the African regions. 

The partnership is expected to move 1,600 tonnes of cargo between the two destinations by the end of this year, with the potential for an increase in flight frequency and new routes. 

"This recent partnership with Teleport is important to enhance our connectivity to Southeast Asia, and we are confident that through the integration of their freighter operations and our capacity, we are able to continue to grow and build a more efficient and robust network that better serves both regions and quickly," said Stanislas Brun, vice president of Cargo at Etihad Cargo.

"The market environment is highly favourable to grow our presence here today, and with a strong air partner like Teleport," he added.

Jagedeswaran Nadrajah, head of Air Partners at Teleport, said the integration of Etihad's global network with Teleport's largest Southeast Asia network has opened up a more dynamic way to connect cargo between these two regions — leveraging on the strengths of both our networks.

"This is valuable to both our existing and new customers trading between two important regions. This sort of synergy is a testament to what Teleport has been building through its Air Partners programme as a win-win solution for all Teleport Air Partners, where we can continue to build and grow and never fly empty," he said.