TAIWAN will allow forwarders to operate multi-country consolidation, which could see the amount of cargo through Taiwan increase and make the country a logistics hub for much of the world.

Taiwanese forwarders could only consolidate from containers according destination. The new law allows them to consolidate transshipments and re-export goods, reports local shipping news website TSSDNews.

If goods are illegally removed or stolen during the process, forwarders are liable to pay import taxes, said the report.

Forwarders air cargo terminals operating outside of control areas who have registered with Taiwan's customs are allowed to use their own seals on their cargo.

To reduce the impact on shipping companies, forwarders carrying out the consolidation will only be allowed to consolidate air cargo, ocean freight and re-export ocean freight first.

Ocean freight import and export may be opened in two years after the finance and transportation ministries amend related laws.

The domestic consolidation is likely to create 2,000 logistics and warehousing jobs in the country.

The new law will make Taiwan the most competitive ocean and air freight hub in the world, said Michael Tai, chairman of Taiwan's International Ocean Freight Forwarders and Logistics Association (IOFFLAT).

Taiwan has a geographical advantage since 80 per cent of global logistics and shipping services are within four hours of Taipei.