Damco expands Hub-In-Transit in Malaysia

2 min readUpdated Jun 4, 2025Jul 29, 20167:30 AM

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Damco, the global third party logistics provider, has expanded its Hub-in-Transit programme by establishing new hubs in Malaysia, United Arab Emirates and Morocco.

Damco’s Hub-in-Transit programme allows companies to postpone their decisions on the final delivery date and final destination, by using container trans-shipment hubs as decoupling points in the supply chain.

Anthony Elwine, Damco’s Global Head of Chemical & Industrial, explains: “Damco customers have used our Hub-in-Transit solution successfully to improve service to their customers while decreasing costs. We have now developed three additional hub locations to help them serve even more markets, and reap similar benefits.

“Chemical sector clients have been early users of the programme, but the service is also suitable for other products, such as steels and textiles, or FMCG/CPG.”

The service is especially of interest to companies with limited on-site storage capacity where production operations are large-scale, continuous processes. Those companies may be forced to ship their products based on assumptions about the best place and time of delivery.

Hub-in-Transit enables the companies to make full use of carrier free-time by using strategically located trans-shipment hubs as virtual warehouses for goods.

By doing so, the companies will be able to lower their costs-to-serve whilst increasing logistics flexibility towards their end-customers.

Damco’s Hub-In-Transit programme: The benefits

Use carrier free-time at strategically located trans-shipment hubs as a virtual warehouse for your goods
Increase flexibility to respond to changing customer demand by postponing your decisions on the final destination and delivery date of shipments
De-consolidate shipments if needed
Respond faster to your customers and increase your speed-to-market
Increase service levels as a result of more reliable point-of-destination deliveries
Reduce costs by eliminating the need for storage at origin or destination
Keep full end-to-end visibility and control of your cargo from the place of manufacturing to your end customer

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What this means

Damco's expansion of its Hub-in-Transit programme in Malaysia is a savvy strategic move, directly addressing a critical pain point for retailers and manufacturers with high-volume, continuous production. By offering virtual warehousing and delayed destination decisions, Damco pressures traditional logistics models and directly competes with services like DHL Supply Chain, which is also innovating in IoT for logistics. This initiative builds on the existing regional trend of brands like Skechers and ZUS Coffee expanding their physical presence, but focuses on the often-overlooked efficiency of the supply chain backbone itself. The risk lies in proving consistent end-to-end visibility and cost savings across diverse product categories. Watch for uptake rates among FMCG clients in Malaysia.

Wei Zhang · Retail News Asia newsroom

Questions & Answers

What is the primary purpose of Damco’s Hub-in-Transit programme?

The programme allows companies to postpone decisions on final delivery dates and destinations. It uses container trans-shipment hubs as decoupling points, acting as virtual warehouses for goods.

Which industries have found Damco's Hub-in-Transit service particularly useful?

Chemical sector clients have been early adopters of the programme. The service is also suitable for other products, including steels, textiles, and FMCG/CPG goods.

How does using Hub-in-Transit help companies financially?

It helps lower costs-to-serve by eliminating the need for storage at origin or destination. Companies can also make full use of carrier free-time by using trans-shipment hubs.

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