DHL now licensed to use Japan's rail-network

[John Ashworth]

DHL Launches Multi-Modal Service Linking China And Japan

Analytiqa02 December 2011

DHL now licensed to use Japan's rail-network for cargo transportation

DHL has 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 60.0% compared to air freight alone, and reduces transit time by up to three days compared to solely using an ocean freight service. It also promises to emit up to 92.0% 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.

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.

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. 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 China-Japan trade lane is among the top intra-regional trade lanes in the Asia Pacific region. The US was Japan's top trading partner until 2007 when China took over as its biggest import and export partner.

While DHL can ship just about anything to and from China on this multi-modal service starting with electronics, the next big potential it sees is from the fashion and clothing 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 DHL is to introduce a less-than-container-load (LCL) option into this service, something small and medium enterprises especially can look forward to.