Yusen Logistics Co., Ltd. has started to provide the rail transport service from Hanoi to Europe utilizing freight trains between China and Vietnam, enhancing cross-border transport services which connect ASEAN countries and Europe.
Freight trains which link China and Vietnam are regularly operated and solutions for realizing stable mass transport with transport demands rapidly growing.
The new rail transport service is one of the few solutions that utilizes railways between ASEAN countries and Europe. Shipments are transported from Hanoi, Vietnam to Chongqing, China by China-Vietnam freight trains, then transferred to the China-Europe Railway Express, which connects China and Europe, and the cargoes will be delivered across Europe.
Yusen arranges cargo collection, vanning operation at their own CFS, import/export customs clearance, and final mile delivery. In addition, shipments status can be updated in real-time with their end-to-end service. Yusen Logistics is the only Japanese freight forwarder who has a large logistics center by the terminal station in Duisburg, Germany, where they handle devanning operation, cross-docking, and delivery all around Europe.
Prior to the launch of the service, the company arranged trial shipments to Germany in March.
Cross-border transport utilizing railways is not only a BCP measure in the supply chain, but also it can optimize lead time and take advantage of a green solution significantly reducing greenhouse gas (GHG) emissions. Due to the Red Sea crisis, ocean transport from Asia to Europe needs extended lead time, as well as shipping container shortage and tight on space resulted from an increase of cargo demand out of Asia.
The situation continues to cause disruption to ocean freight, including a sharp rise in shipping costs. With international rail transport option, lead time will be shortened by approximately 18 days compared to the Cape route, and GHG emissions will be reduced by approximately 50% compared to ocean transport via the detour route.
In 2023, Yusen began to provide the rail transport service to Europe utilizing China-Laos Railway. To respond to the further growth in transport demand between Europe and ASEAN countries such as Thailand, Malaysia, and Cambodia, the company will continue to aim to expand intermodal transport services with international railways. In Vietnam, in addition to the brand-new service from Hanoi, Yusen are also in the process of verifying an international rail transport service from Ho Chi Minh City.
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