IAG rides high on surging Malaysia volumes

IAG Cargo has seen sharply increased volumes both in and out on its just-opened Kuala Lumpur service, as the new destination looks set to add not just more capacity but strength and depth to IAG’s presence in Southeast Asia. “It does plug a gap. Certainly in Southeast Asia it plugs a big gap,” John Cheetham, regional commercial manager for Asia Pacific and India told Payload Asia in the Malaysian capital, Kuala Lumpur (KL). By Michael Mackey.

Since KL came on line at the end of May exports to the UK and Ireland have risen by 57 per cent, nearly ten times more than the six per cent increase in cargo to the rest of Europe and two-thirds more than cargo to North America which grew by 37 per cent.

The products being carried are a good mix heavily weighted towards high tech electronics, brought down by road from Penang in the North of Malaysia. These are half of the goods IAG moves out of Kuala Lumpur, ahead of perishables (30 per cent), rubber goods (10 per cent) and ‘just in time’ garments (five per cent), which Cheetham said is often carried as a prioritised product.

Imports into the Malaysian capital have increased as well. Both the UK and Ireland saw a 40 per cent rise, double those from North American which increased by 20 per cent. Inbound KL, IAG Cargo has seen a good mix of cargo including machinery parts and industrial chemicals, as well as perishables – in particular cherries and blueberries – alongside pharmaceutical products This mix and balance of goods, one cutting out the traditional problem of lack of imports, helped make Kuala Lumpur very attractive for IAG Cargo.