Big growth expected in truck freight between China and Europe
March 26, 2019 Category China News Round-up, Weekly
Truck freight between China and Europe is set to increase substantially after a vehicle loaded with high-tech manufacturing equipment successfully completed the 11,000 kilometer road journey from Dornstadt in Germany to Shanghai in two weeks. The freight-laden truck crossed Germany, Poland, Belarus, Russia and Kazakhstan before entering China for the final leg of its journey. It was also the first Europe-to-Shanghai truck freight by the Suzhou-based logistics company Suzhou Daoxin Supply Chain Management Co. Due to adverse weather conditions, the customer could not use airfreight to ship the products in two weeks.
There is great potential for road transport across Eurasia. In 2018, China’s total trade volume with the EU amounted to CNY4.5 trillion, up 7.9% year-on-year. Major markets along the Silk Road Economic Belt and all EU countries are TIR members. With the implementation and optimization of TIR in China, road transport as a cross border tool will play a greater role in trade flows. Truck transport offers an alternative option besides air, sea and rail. Road transport can ensure a ‘door-to-door’ service, which is suitable for high-priced goods and clients with strict time requirements.
Road transport can save up to 10 days compared to rail, and it costs much less than air transport. Hu Rongyi, General Manager of Suzhou Daoxin, was one of the earliest people to spot the opportunities in road transportation between Europe and China. After paying some visits by staff members along the truck route, Suzhou Daoxin delivered its first batch of goods, a truck of steel rolls from Germany’s Stuttgart to Suzhou in Jiangsu province in March 2018. However, the pilot transport was unsatisfying as it took 21 days. “We made a few more trials, and finally managed to get the goods delivered in 12 and 13 days late last August,” said Hu. Currently, Suzhou Daoxin operates truck transport services between Europe and Chinese cities every week, the China Daily reports.
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