DHL launches multi-modal service
DHL has announced the roll out of the industry’s largest suite of multi-modal services by its Global Forwarding and Freight division. The suite of solutions combines air, road, rail and sea transportation to move cargo from China to the rest of the world and is expected to help ease the capacity shortage for air and ocean freight from China. More importantly, it will help companies reduce transport costs by 20 to 50% and carbon emissions by up to 89%.
Hermann Ude, CEO, DHL Global Forwarding and Freight said: “We believe multi-modal solutions will shape the future of logistics as companies look for ways to reduce their carbon footprint, reduce transport cost, and especially in Asia, deal with seasonal capacity shortages. China’s ongoing investments in infrastructural development – road, rail, and world-class international flight connectivity – have opened up new possibilities for scheduled, reliable and flexible door-to-door services through the combined use of different transport modes.”
The move is timely as freight volumes from China and Asia as a whole are leading the global air freight and ocean freight recovery. Intra-Asia trade is forecast to grow at 6.2% CAGR fuelled by the increase in Chinese consumption as well as increasing intra-Asia trade with China. Similarly, air cargo volumes between North America and China are expected to grow 8% CAGR between 2010 and 2019, and 6.8% CAGR for the same period between Western Europe and China. DHL Global Forwarding anticipates that the popularity of multi-modal services will continue to increase in view of seasonal capacity shortages that are expected to remain in the coming two to three years.
Kelvin Leung, CEO, North Asia Pacific, DHL Global Forwarding, said: “With multi-modal solutions, customers can opt to replace air freight with combinations of rail, road, sea and air transport with different transit times, costs and levels of CO2 emissions. Compared to using air freight alone, using multi-modal services will result in cost savings of 20 to 50% and as much as 90% when replacing air freight with just international rail. In addition, switching from air freight to a multi-modal combination of sea, air, road and rail transportation can achieve a reduction in carbon emissions of as much as 89%. It all depends on which mode of transport is switched to which.”
Steve Huang, CEO, China, DHL Global Forwarding, said: “China’s planned high speed expressways and rail networks are scheduled for completion within the next three years, enhancing access to and from the five economic regions which cover 74% of the country’s population, contribute to 90% of its GDP and account for 95% of its international trade. Launching multi-modal solutions enables businesses in China to further leverage the country’s investments in infrastructure and enhance trade and connectivity to the world.”
Affirming DHL’s commitment to Sustainable Supply Chain solutions, DHL Global Forwarding announced the launch of its multi-modal solutions in conjunction with Shanghai Expo, where the company has partnered with the Urban Planet pavilion to exhibit DHL’s GOGREEN products, environmentally friendly transport technologies and new concepts for effective City Logistics.
Unveiled today (July 1), DHL Global Forwarding’s suite of five multi-modal services includes:
1. International Rail
– End-to-end rail service originating from 14 cities in China, arriving in 7 countries in Commonwealth of Independent States (CIS), Mongolia and Russia
– Over 95% CO2 reduction in emissions compared to air freight on some routes
– 90% cost savings compared to airfreight and 30% faster than ocean freight
2. Rail-Air
– Daily rail service from 4 cities in China to Urumqi, weekly air service from Urumqi to Germany and onwards to 70 cities in 26 European countries
– Combines advantages of China’s domestic rail network and DHL Global Forwarding’s international air freight services from Urumqi to Europe
– Over 50% CO2 reduction in emissions compared to airfreight on some routes
– 20-50% cost savings compared to airfreight and 20-50% faster than ocean freight
3. Sea/River-Rail
– Sea service from Guangzhou to Lianyungang, rail service from Lianyungang to CIS, Mongolia and Russia
– Combines advantages of DHL Global Forwarding’s domestic sea freight services in China and international rail services out of China
– Up to 80% CO2 reduction in emissions compared to airfreight on some routes
– 90% cost savings compared to airfreight and 30-40% faster than ocean freight
4. Sea-Air
– Ocean freight originating from 13 cities in China. Onward airfreight from Dubai or Los Angeles – reaching over 100 cities in Africa, Europe and the Middle East via Dubai and reaching 30 cities in the Americas via Los Angeles.
– Over 80% CO2 reduction in emissions compared to airfreight on some routes
– 20-40% cost savings compared to air freight and 30-50% faster than ocean freight
5. Cross Border Road Freight
– Door-to-door full truck load or less-than-truckload service originating from 11 cities in China, arriving at Friendship Gateway at China-Vietnam border
– Door-to-door full truck load or less-than-truckload service from Friendship Gateway to 4 cities in Vietnam
– Over 80% CO2 reduction in emissions compared to airfreight on some routes
– 20-50% cost savings compared to airfreight and 30-50% faster than ocean freight
