The APX founding team
In Thailand, parcel companies mainly use trains, the most cost-effective mode of transportation, to deliver cargo. However, the underdevelopment of the country’s railway system forces them to use small trucks extensively.
Uwe Dettmann and the team sensed an opportunity there and launched APX (Asia Pallet Express).
Founded in 2019 by Dettmann, Sorawit Tantrakulcharoen, and Sukanya Thamthada, APX provides door-to-door cargo transportation services through its network, with modern platforms for LTL (less-than-truckload) and palletised cargo services. It aims to build a connected truck transport network in Thailand and the ASEAN region to improve logistic efficiency while reducing CO2 emissions and the number of trucks needed on the road in the long run.
Also Read: APX gets ORZON’s backing to build a connected truck transport network in Thailand
“The LTL model allows customers to pay only for the space they use rather than chartering an entire truck seen in the full-truckload (FTL) model. Moreover, the hub-and-spoke approach streamlines distribution networks and leveraging the efficiency of the LTL model to cater to varying shipment sizes and destinations,” says Dettmann, CEO of APX.
LTL, a proven model in regions like the EU, the UK, and the US, has shown its adaptability and effectiveness. APX tailors this model to the unique demands of the Asian market, leveraging Thailand’s strategic geographic location as a gateway to Southeast Asia and major shipping hubs.
APX gathers fragmented trucking companies in various areas through its LTL model and hub-and-spoke trucking system and divides them according to their expertise in first-mile, line-haul, and last-mile services.
By having them operate together under its network, APX consolidates shipments from multiple small trucks into one large co-loaded truck. This reduces CO2 emissions and fuel costs and offers a cheaper alternative.
“For example,” Dettmann shares, “it requires 26 4-wheel trucks to transport 26 tons of consignment over a 300km distance, costing around 26,000 baht (~US$700) and emitting approximately 1,991 kilograms of CO2. Now, if we consolidate the cargo from these 26 small trucks into one 18-wheel vehicle, we’d only pay about 3,818 baht (~US$100), saving more than 7x the cost and reducing CO2 emissions by over 8x to just 292 kilograms.”
“Furthermore, the hub-and-spoke model also helps reduce backhauls. Since every truck in API’s network has to go to the hub, they always carry both inbound and outbound goods, ensuring full loads for both legs of the trip,” he explains.
The startup specialises in door-to-door transportation, allowing businesses and individuals to transport goods conveniently and efficiently. It also uses advanced smart loading plans, plug-in AI, and machine learning to optimise routes and scheduling to ensure timely delivery.
In addition, APX provides warehousing and distribution services, including fulfilment, kitting, co-packing, and custom clearance services, covering land, sea, and air freight.
The startup has established a network of trucking companies with expertise in different jobs and regions. Every truck in its network of over 2,500 undergoes standardised training. “Previously, fragmented trucking companies couldn’t offer nationwide service. By joining our network, they can now offer this service, creating a win-win situation for both trucking companies and customers,” Dettmann says.
In July last year, APX secured an undisclosed sum in pre-Series A funding led by ORZON Ventures to penetrate Malaysia and Singapore and diversify revenue channels. “Previously, our revenue solely came from domestic services in Thailand. Now, we provide both domestic and international services, covering Thailand, Malaysia, and Singapore. We also have partnerships allowing customers to ship goods door-to-door to the EU region seamlessly,” Datemann says.
One of APX’s key clients is PTT Oil and Retail (the company behind ORZON). Partnering with ORZON helps APX expand in all aspects, increasing revenue, reducing costs, and facilitating member recruitment and expansion.
APX aims to be a one-stop logistics solution offering customers comprehensive services. “We want to provide access to reliable and cost-effective trucking solutions to any region in Thailand regardless of their location, unlocking their potential to new markets across Southeast Asia and supporting development in ASEAN,” Dettmann concludes.
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