Subscribe to our free, weekly email newsletter!


UPS expands global offerings with new China-Europe rail service

By Jeff Berman, Group News Editor
July 08, 2014

In a move geared toward expanding its global forwarding services and provide shippers with more options, UPS recently announced that it has added a Full Container Load (FCL) rail offering to its China-to-Europe services portfolio.

This rail service runs from Chengdu, China to Lodz, Poland and from Zhengzhou, China to Hamburg, Germany, UPS said, and it added that the rail movements, coupled with a trucking network, enables UPS to provide increased service to shippers in China and Europe.

“Our customers are looking to UPS for ways to achieve their business objectives of reaching new markets and reducing costs,” said Keith Andrey, UPS vice president of ocean freight and multimodal services, in a statement. “We are excited to add our rail option for our customers in one of the world’s largest freight lanes to complement our existing ocean and air freight and package capabilities. This gives customers access to a broader transportation portfolio to better meet their business needs.”

A UPS spokesman told LM that the new rail service is up to 50 percent faster than ocean freight and up to 70 percent less costly than air freight.

“Based on market data for ocean sailing and train routings, customers may achieve up to 50 percent transit time savings for lanes like Chengdu to Prague, while savings will likely be lower and up to 30 percent for coastal pairings like Shanghai to Hamburg,” the spokesman said.

UPS said that the new rail service is well-timed to meet the needs of shippers in terms of balancing supply chains, citing a study from Seabury that noted more than 70 percent of shippers expect a moderate to strong shift to lower cost modes over the next 1-to-3 years.

The UPS spokesman said that the company’s customers are looking to improve their supply chain and cut costs while obtaining a time-in-transit that best fits their business.

“The solution will be similarly positioned and has a similar value proposition as Sea-Air, meaning it is slower and cheaper than Air Freight, but more expensive and faster than Ocean Freight,” he said. “UPS is always looking to ensure we have the right products and services to best serve our customers. UPS began evaluation of rail as a possible transportation solution on the China-Europe lane in 2013, and, after thorough evaluation, began offering the service to our customers in the second quarter of 2014. This is an expansion of our forwarding services and gives customers more options in the Asia-Europe lane. Like other multimodal offerings, the rail solution will save money for customers shifting volume from air freight to rail.”

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Mexico's growing importance in the continental supply chain is now being recognized by North American transportation groups

Satish Jindel, president of Pittsburgh-based SJ Consulting, says that one way for LTL carriers to improve both their bottom lines and overall productivity is to get a better grasp on the cost of handling a shipment and the pricing they have for it.

Falling 5.5 cents to $2.668 per gallon, this follows last week’s 5.9 cent decline for the lowest weekly average price going back to the week of October 14, 2009, when it was at $2.60 per gallon.

With the latest round of Trans-Pacific Partnership (TPP) negotiations in Maui, Hawaii ending without a deal, U.S. supply managers may be adjusting to other global sourcing strategies.

The PMI, the ISM’s index to measure growth fell 0.8 percent to 52.7 (a PMI of 50 or greater represents growth). PMI growth has been at 50 or higher for 31 straight months (with the overall economy growing for 74 months), and the current PMI is 1.7 percent below the 12-month average of 54.4.

Article Topics

News · Global Logistics · Railroad · UPS · FCL · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA