The Amsterdam-based GSSA has opened a station in Reykjavík – this is Kales’ first office in Iceland and its 80th worldwide. It is a joint venture with local partner TVG-Zimsen, the freight forwarding and logistics arm of Eimskip, a leading maritime transport company in the Nordic country. By far the most important export is fresh seafood.
CEO, Sebastiaan Scholte, and Adam Gunnarsson, VP at Kales Group, have probably already stocked up on warm winter clothing. That is because they are likely to be traveling to Iceland more often during the coming months, when winter temperatures can drop to -10°C to -15°C. The reason for their trips to the volcanic island in the North Atlantic: the establishment of a branch office aimed at consolidating and expanding Kales’ market position on the outskirts of Europe.
Air China Cargo is the first customer
The newcomer is not starting from scratch. It has already secured Air China Cargo as a major client. The Chinese airline operates three weekly flights, using an A330-300 jetliner to connect Beijing via Copenhagen with Reykjavik. “We are responsible for marketing the capacity on the return flight to Beijing. Since we are also the Chinese airline’s partner in Copenhagen, we can find the most advantageous solution for our customers depending on volume and rate conditions,” explains Manager Scholte.
Sharing of responsibilities
To achieve their intended market penetration, Kales and its partner, TVG Zimsen intend to leverage their respective areas of expertise in a targeted manner. While Kales Group contributes international airline representation experience and an established airline network spanning 39 countries, TVG-Zimsen’s strengths are its expertise of the local market situation and its deep routed customer relationships.
“By combining Kales’ international experience and airline network with TVG-Zimsen’s local market knowledge, we have a strong foundation for developing Kales Iceland. Our ambition is to build a professional, independent and commercially focused GSSA organization that creates value for our airline principals and for the entire Icelandic cargo community,” notes CEO, Sebastiaan Scholte. Per flight, the A330-300 operated by Air China can accommodate between 10 and 15 tons of cargo in the aircraft’s lower deck compartments.
Providing neutral services
Kales emphasizes that the joint venture will provide neutral GSSA services to airlines operating in the Icelandic market. It remains to be seen whether they will succeed in acquiring one of the roughly dozen airlines serving Iceland.
“The establishment of Kales Iceland represents an exciting new chapter for airline representation in Iceland. By combining TVG-Zimsen’s understanding of the Icelandic market with Kales’ international GSSA expertise and airline network, we are creating a strong foundation for airlines looking to develop their business in Iceland,” emphasizes Raffaele Manna, Managing Director of TVG-Zimsen.
Seafood and more
As far as exports are concerned, electronics and general cargo are among the most important goods, alongside the main product: seafood. Icelandic exporters, particularly those shipping fresh salmon and other time-and temperature critical products, gain a new route to reach customers in the Chinese market. At the same time, importers benefit from a new scheduled freight connection and greater access to goods and suppliers in China, states a press release published by Kales Iceland, the new GSSA’s shared name. However, Kales is not responsible for the import business.
