October 28, 2017, Wuhan, China—Damco, a global provider of freight forwarding and supply chain management service, today launched its first block train service between China and France at an official ceremony in Wuhan, Hubei Province. The block train which will be transporting goods for one of the world’s largest global sporting goods retailers, is set to reduce transit time into Europe by around 20 days with an expected arrival date in France of 16 November.
Caroline Wu, CEO of Damco Greater China Area commented, “This is an important step towards expanding logistics support to the markets we serve across the regions.” She continued, “We are grateful to our customers for the trust they have put in us and look forward to providing them with a cost effective, efficient and dependable service.”
The Damco Rail solution offers a substantial, complementary advantage alongside traditional ocean freight solutions which could also enhance the business relationship between China and France. In addition to providing the market with a secure, reliable, door-to-door (FCL, LCL) service, this intercontinental rail solution creates further opportunities for customers to elevate their supply chain operations by leveraging Damco’s global supply chain footprint and the range of products within its portfolio.
“While this development represents a significant milestone in Damco’s Rail product development, at a third of the cost of air freight, it can also contribute positively to improving cost efficiencies and supply chain agility for businesses.” commented Philippe Dunand, Global Account Director for Damco’s Lifestyle business.
Rail services are becoming increasingly important for the transportation of goods between China and Europe with the ongoing developments as part of China’s One Belt One Road or, Belt and Road Initiative. Given the distances covered and the need for manufacturers to transport their goods efficiently and securely between the two regions, customers can also benefit from Damco’s global supply chain management expertise.
Damco’s Head of Rail, Kasper Krog stated, “Our analyses show that the block train not only achieves reliable lead times, but also provides customers with improved cargo visibility through GPS tracking.” He continued, “Furthermore, because CO2 emissions from rail services are typically 12 times lower than that of air transport, with the block train, we are also able to offer a solution that is efficient, fixed timetable, cost effective, transparent, and with comparatively lower impact on the environment.”
The project also demonstrates the synergetic value of Maersk group’s multiple brands within the Transport & Logistics division in providing customers with further added value and flexibility via multimode transport solutions. The company plans to make the block train service available to additional customers and market sectors.
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About Damco Rail
Damco Rail was established in 2014 initially with a focus on the high-tech sector. Our rail products and services have been developed to enable organisations, supported by our expertise, to design end-to-end solutions that are tailored to meet their specific needs. Our rail solutions include: rail services between China and Europe; cross-border truck-rail services from Vietnam to Europe via China; and short sea-rail from Taiwan/ASEAN to Europe via China. Damco rail now covers a variety of vertical market segments including retail and lifestyle.
Damco is at the forefront of developing innovative supply chain solutions. We fuse our global network and depth of expertise with pioneering digital innovations to enable our customers to stay ahead. Our vision is to connect and simplify supply chains across the globe.
We are experts in the field of complex, rapidly changing markets such as fashion, retail, chemical, FMCG and technology. With a presence in over 100 countries, where we employ more than 11,000 people worldwide, we combine global reach with depth of local understanding. In 2016 we reached a turnover of 2.5 billion US dollars, managed 659 thousand TEUs (twenty-foot equivalent units) of ocean freight and 190 thousand tons of air freight.
We are proud to be a part of A.P. Moller – Maersk.