Yusen Logistics has started a rail freight service between Vietnam and Europe. The logistics provider said the service provided an alternative to ocean container services that continue to be disrupted by attacks on shipping in the Red Sea at the same time that capacity is being tested by an increase of exports from Asia.
“The situation continues to cause disruption to ocean freight, including a sharp rise in shipping costs,” said the company in a statement. “With [an] 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.”
The new rail service will move goods from the Vietnamese capital Hanoi to Chongqing, China by China-Vietnam freight trains. That cargo is then transferred to the China-Europe Railway Express, which connects China and Europe, and the cargoes will be delivered across Europe.
“We arrange cargo collection, vanning operation at our own CFS [container freight station], import/export customs clearance, and final mile delivery,” said Yusen in a statement. “In addition, shipments status can be updated in real-time with our end-to-end service.
In Europe, Yusen has a logistics centre next to the rail terminal at Duisburg in Germany and has carried out trial shipments there in March this year. It is now unloading containers into its cross-dock and for onward delivery around Europe.
Yusen said it started to provide a rail transport service to Europe using the China-Laos Railway. Increased demand for transport between Asean countries, including Cambodia, Malaysia and Thailand, means Yusen is expanding multimodal transport services with internationals railways. Along with the new service from Hanoi, Yusen is in the process of introducing an rail service from Ho Chi Minh City.
The company said it would continue to enhance supply chain logistics and promote initiatives with a sustainable long-term perspective.
The EU and Vietnam signed a free trade agreement in 2020. Vietnam exorts a range of car components to Europe and the rest of the world, includingengines, chassis, axles, paint, electrical systems, chips, and circuit boards. Exports of transport-related and car parts grew in 2023.
Earlier this year Yusen Logistics bought service parts logistics provider Parts Express to strengthen its automotive logistics offering in Belgium, the Netherlands and Luxembourg.
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