In South Korea, the number of air forwarders increased from 32 in 1988 to more than 200 more recently; many have entered the competitive arena of Europe and America routes.
Aeroad started as a consolidator of Aeroflot in 1993. Small Russian businessmen importing garments and small electronics goods constituted its initial custom, which has since grown into a medium-sized company.
Based on its success in Russia, Aeroad entered China as general sales agent of China Northern and Air China in April last year.
"At first, we had a tough time (on our China business)," said executive director Jong Kwan-soo.
At the time most cargo on China-South Korea routes were transferred by ocean-going carriers, with only one to two per cent of them transported by air.
"Things are getting better," Jong said.
The China business turned for the better, thanks to rising demand for transporting raw materials from South Korea to China. Korean manufacturers of textiles, footwears and electronics have transferred factories to China, and are now transporting materials from their Korean subcontractors to their China factories.
In February this year, the firm signed a marketing agreement with Airfoyle, a specialist charter operator of AN-124 aircraft.
"Rather than breaking into crowded competition, we chose to become a specialist in the untapped market," Aeroad president Choi Han-kyong said.
Only ten AN-124 planes are flying worldwide. The AN-124 can carry up to 120 tonnes of cargo.
"Korean shipowners remain unaware of the service merit of AN-124, but things will change as demand for special projects pick up," Jong said.
Demand for project cargoes (such as nuclear power plant components) from Korean shipowners, is rising rapidly, said Jong.
In March this year, Aeroad signed a cargo wholesaler contract with Miat Airline of Mongolia. The firm arranges a weekly service for Miat Airline's Boeing 727 on Seoul-Ulan Bator route.
"Despite the present slow demand, Ulan Bator has potential as a gateway to Central Asia," said Jong.