DHL Global Forwarding continues to enhance its services which leverage infrastructure developed as part of “Belt and Road”, the Chinese trade initiative that could influence up to half of all global trade once completed.
“Trade is the enabler for greater prosperity and a sustainable future. We believe logistics is the backbone of global trade, and nowhere more than in Asia have we seen the tremendous transformation of the economies as rising standards of living and a growing middle class has fuelled increased consumption and trade,’ said Frank Appel, CEO, Deutsche Post DHL Group.
Frank Appel was speaking in conjunction with DHL’s Delphi Dialog forum on the implications of “Belt and Road” for international trade. The forum, with renowned experts from the government, business and academia, is the latest in a series which examines trends and developments that shape our world and the logistics industry.
Making ‘Belt and Road’ accessible for business
China’s investment in Belt and Road infrastructure – more than US$75bn (Euro 67.5bn) in the 18 months to June 2016 – bolsters regional cooperation and promotes trade. Since 2010 and in line with the vision for “Belt and Road”, DHL has been developing scheduled connections offering rail services across multiple cities in China, and linking it to road solutions throughout South East Asia and ferry services from North Asian cities in Japan and Taiwan.
From South East Asia and other parts of North Asia, the road and ferry connections feed into China’s rail system which connects into Europe, with final distribution by road across the continent. This intricate connection of rail, road and sea services offers customers an additional logistics route, fostering trade between economic powerhouses of Europe and Asia.
“We have been focused on building connectivity between China and regional countries, and connections into Europe via all combinations of road, rail and sea services,” said Steve Huang, CEO, DHL Global Forwarding China. “A multimodal solution – combining all modes of transport – enables customers to better manage their supply chains – offering flexibility, cost savings and potentially a reduced carbon footprint.”
“The new service provides greater flexibility and speed for Japan’s exporters, including sectors like automotive and electronics production which already enjoy market dominance in Europe,” said Mark Slade, President and Representative Director, DHL Global Forwarding Japan.
“With Less-than-Container Load services to Europe, Japanese businesses can improve the efficiency of fulfillment and inventory management at cost-effective rates, helping them maintain their competitive edge as world-class manufacturers.”
Broadly, combinations of multimodal services can reduce transport costs by up to six times and up to 90% reduction in carbon footprint as compared with air freight, making it an increasingly attractive option for SME and MNC customers alike.
DHL launched a further three new multimodal services:
- Sea & Rail service: A Less-than-Container Load (LCL) service between Japan and Germany which allows businesses to export low-volume shipments for as little as half the cost of standard air freight. With a transit time of about 22 days, shipments are moved from Kobe to Taicang via sea, and by rail to Hamburg through hubs like Duisburg, Lodz, Malaszewicze and Warsaw.
- Road & Rail service: The Vietnam-Europe service takes Full Container Load (FCL) cargo from Hanoi to Chengdu via road, followed by rail to hubs like Lodz, Duisburg and Hamburg in Europe, arriving in 21 days. An LCL option for the Vietnam-Europe service will commence in Q4 2016.
- Rail, Road & Sea: Further boosting our Southern rail corridor offering announced last year, the new Chengdu-Istanbul service traverses three Central Asian countries – Kazakhstan, Azerbaijan, and Georgia – as well as two sea transit segments before arriving at Istanbul in 14 days.
The three new services build on a series of major DHL investments in the last 12 months, including a multimodal service between Japan and Warsaw via Suzhou announced in November 2015; and an MOU signed in May 2016 with Chengdu’s Gateway Logistics Office to upgrade infrastructure and customs processes. DHL has been developing multimodal services along the Belt and Road since 2010, when it launched a suite of five services – International Rail, Rail-Air; Sea/River-Rail; Sea-Air and Cross-Border Road Freight.
