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China-Europe rail stands to threaten air cargo's market share
THE head of global freight forwarding at United Parcel Service (UPS), Steve Flowers, believes that Beijing's One Belt, One Road initiative will come to threaten air cargo carriers between China and Europe.
"Transportation managers will likely have a hard time passing on the opportunity to reduce transport costs up to 65 per cent while not having to endure the 40 days-in-transit typical for ocean service," Mr Flowers said.
UPS has been running full container loads on the China-Europe rail network for the past year and based on that, Mr Flowers said customers were saving up to 65 per cent by opting for rail over air, reports Newark's Journal of Commerce.
Next will come China-Europe less than container loads, good news for shippers, but a service that will cut into the market share of air cargo, said Mr Flowers.
The LCL option would make the rail service more attractive to traditional air freight shippers that were accustomed to palletised loads, and open up new multimodal freight options for shippers of all sizes.
"This UPS preferred LCL service will help attract shippers of all shapes and sizes on one of the world's largest and busiest trade lanes," he said.
Mr Flowers said the products being shipped out of China were a mix of high tech, industrial and automotive, retail and consumer goods, and UPS saw the rail service as crucial for its international customers.
John Lin, deputy director of policy and law research centre at the Shanghai International Shipping Institute, said even with the strong growth, the vast majority of containers will still go by ship.
"Transportation managers will likely have a hard time passing on the opportunity to reduce transport costs up to 65 per cent while not having to endure the 40 days-in-transit typical for ocean service," Mr Flowers said.
UPS has been running full container loads on the China-Europe rail network for the past year and based on that, Mr Flowers said customers were saving up to 65 per cent by opting for rail over air, reports Newark's Journal of Commerce.
Next will come China-Europe less than container loads, good news for shippers, but a service that will cut into the market share of air cargo, said Mr Flowers.
The LCL option would make the rail service more attractive to traditional air freight shippers that were accustomed to palletised loads, and open up new multimodal freight options for shippers of all sizes.
"This UPS preferred LCL service will help attract shippers of all shapes and sizes on one of the world's largest and busiest trade lanes," he said.
Mr Flowers said the products being shipped out of China were a mix of high tech, industrial and automotive, retail and consumer goods, and UPS saw the rail service as crucial for its international customers.
John Lin, deputy director of policy and law research centre at the Shanghai International Shipping Institute, said even with the strong growth, the vast majority of containers will still go by ship.
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