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

Seasonally-adjusted (SA) for-hire truck tonnage in October at 135.7 (2000=100) was up 1.9 percent compared to September’s 133.1, and the ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment was 139.8 in October, which was 0.9 percent ahead of September.

The average price per gallon of diesel gasoline fell 3.7 cents to $2.445 per gallon, according to data issued today by the Department of Energy’s Energy Information Administration (EIA). This marks the lowest weekly price for diesel since June 1, 2009, when it was at $2.352 per gallon.

In its report, entitled “Grey is the new Black,” JLL takes a close look at supply chain-related trends that can influence retailers’ approaches to Black Friday.

This year, it's all about the digital supply network. In this virtual conference, we will define the challenges currently facing supply chain organizations and offer solutions designed to transform linear operations into dynamic, automated networks that offer seamless communication, visibility, and the ability to respond and optimize processes at any given time.

In his opening comments assessing the economy at last week’s RailTrends conference hosted by Progressive Railroading magazine and independent railroad analyst Tony Hatch, FTR Senior analyst Larry Gross said the economy continues to slog ahead at a relatively tepid pace, coupled with some volatility in terms of overall GDP growth. And amid that slogging, Gross said there is currently an economic hand-off occurring between the industrial sector and the consumer sector.

Article Topics

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


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