Hyundai Glovis Co., a logistics unit under South Korea’s Hyundai Motor Group, has added a truck-based freight transport unit in the United States to bolster its road connection for faster inroads in North America.
The company announced Thursday that its U.S. subsidiary Glovis America Inc. has set up a new trucking subsidiary. Named Global Expedited Transportation (GET), the new trucking firm specializes in freight transport via truck across the U.S., mainly between the West coast and the East coast.
GET will primarily serve to transport automotive parts used by U.S. operations of its affiliated finished car makers Hyundai Motor and Kia Motors. By assigning a team of two truckers per overland freight, the company will transport automotive parts picked up at the ports in Los Angeles and deliver them to auto assembly plants on the East coast within 54 hours. The two truck drivers will take turns to drive night and day across the country.
The company said that the new transport subsidiary will deliver 40 percent of its total overland shipment in the early stage and then will gradually increase its direct shipment to 70 percent by 2023.
In addition, GET will offer trucking service for third-party clients that need shipping service from the East coast to the West coast as well as increase handling items to such as raw materials on top of electronics parts for better operational efficiency.
According to the Hyundai Glovis, truck-based freight transport service accounts for nearly 80 percent of the U.S. cargo shipping demand with its annual market size reaching 726 trillion won ($621 billion). The operating margin of the trucking firms on average also has been on a rise every year.
By Lee Jae-cheol and Cho Jeehyun
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