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DHL Launches Multi-Modal Service Linking China and Japan

DHL
2011-12-01 22:15 1489
 

TOKYO, Dec. 2, 2011 /PRnewswire-Asia/ --

  • DHL now licensed to use Japan's rail-network for cargo transportation
  • New service cuts freight costs by up to 60% and CO2 emissions by up to 92% with reduced transit times
  • Enables seamless door-to-door transportation from China to Japan and back

DHL, the world's leading logistics company, today announced the launch of a new multi-modal service operated by its Global Forwarding division between China and Japan, which cuts costs by up to 60 per cent compared to air freight alone, and reduces transit time by up to 3 days compared to solely using an ocean freight service. It also promises to emit up to 92% less CO2 compared to air freight. The China-Japan multi-modal service was made possible because DHL was recently licensed by the Ministry of Land, Infrastructure, Transport and Tourism to use railway for cargo transportation in Japan.


Figure 1: Japan to China rail and ferry overview

DHL's China-Japan multimodal service comprises the use of ferries, rail and trucks carrying 12-foot containers. Goods are picked up from any location in China -- mainly Shanghai, Ningbo, Hangzhou, Suzhou, Nantong, Wuxi, Nanjing, Hefei and Wuhan -- and brought to Shanghai by truck, taken across to Hakata in Japan by ferry and then transported across Japan via Japan Rail. In Japan, pick-up and delivery is done through Japan Rail -- the country's most extensive rail network -- and taken across to Shanghai by ferry, with final delivery to destinations in China done by truck.

Roger Crook, CEO, DHL Global Forwarding, Freight, said, "China and Japan are two of the world's largest economies and the China-Japan trade lane is among the top intra-regional trade lanes in the Asia Pacific region -- it constituted over 44% of intra-regional trade in 2010 (Note 1). Pioneering, innovative transport solutions such as this, offer our customers yet more flexibility with the reliability of the DHL service quality."

12-foot containers used throughout the route

The 12-foot containers used in this service -- smaller than the usual 20- and 40-foot containers -- can be carried on all three modes of transport -- road, rail and ferry -- and handled at the majority of Japan rail freight terminals (Note 2). This significantly cuts handling and transit time as well as the potential for damage to goods by eliminating the need to move goods from one type of container to another to correspond with each transport mode. Additionally, these containers allow customers to ship in smaller amounts for better control over their inventory management.

"The US was Japan's top trading partner until 2007 when China took over as its biggest import and export partner," said Kelvin Leung, CEO, Asia Pacific, DHL Global Forwarding. "While we can ship just about anything to and from China on this multi-modal service starting with electronics, the next big potential we see is from the fashion and apparel sector -- the biggest mover of goods from China to Japan -- and the automotive sector, a key sector moving goods in both directions. The next step for us is to introduce a less-than-container-load (LCL) option into this service, something small and medium enterprises especially can look forward to."

Notes:

  1. Global Insight
  2. The bigger 20- and 40-foot containers can only be handled at selected stops of the Japan Rail network.

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DHL -- The Logistics company for the world

DHL is the global market leader in the logistics industry and "The Logistics company for the world". DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 275,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education.

DHL is part of Deutsche Post DHL. The Group generated revenue of more than 51 billion Euros in 2010.

For the latest news and happenings about DHL in Asia Pacific, visit http://press.ap.dhl.com.

Source: DHL
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