DHL Operates Laos Route to China to
By-pass Vietnam Border Bottleneck
·
China-Vietnam
road border crossing presently experiencing delays by 20-30 days
·
DHL Global
Forwarding, the first international forwarder to launch the two-way China-Laos
rail service, sees rapid demand with 20-24 hour transit time and costs up to
50% less than airfreight
·
Vientiane
and Kunming key as multimodal hubs for China-ASEAN trade
Heavy road congestions on the China-Vietnam
border due to local COVID-19 related situations have resulted in soaring demand
for newly launched two-way China-Laos rail services facilitating trade between
China and ASEAN. Over 2000 trucks are in the queue on both sides of the main
connection Pingxiang (China) bordering Lang S'on (Vietnam), causing delays of up to 20-30 days.
The alternative border at Dongxin (China) bordering Mong Cai (Vietnam), which reopened on
10 January, is still experiencing backlogs. Both congestions are expected to
continue through to the Lunar New Year.
DHL Global Forwarding, the leading
international freight specialist division of Deutsche Post DHL Group, and the
first international forwarder to launch a two-way rail freight service between
Kunming, China and Vientiane, Laos has seen significant uptake with a daily
connection in each direction for its service on the newly opened China-Laos
railway. The rail service shortens transit time between Kunming and Vientiane
to about 20 – 24 hours, compared to 20-30 days with the present congestion
through Vietnam.
Rail-truck solution between China &
Southeast Asia: Key to keeping supply chains running
"We launched the China-Laos Railway
service in December and it was just in time. The backlogs on the road borders
between China and Vietnam are not likely to clear before Chinese New Year, and
it is really critical during this peak season to have the rail
alternative," said Steve Huang, CEO, DHL Global Forwarding Greater China.
"Thanks to the two-way rail service
between Laos and China, we've been able to help customers keep their delivery
timelines with limited delays. The service strategically positions Laos, a
land-locked country, as a land-linked hub. DHL Global Forwarding has the most
extensive road and rail services in the region, and our customers moving goods
between China and ASEAN countries now have a strong viable alternative between
air and ocean freight," Thomas Tieber, CEO, DHL
Global Forwarding Southeast Asia said.
Peak season relief: Faster, Cheaper freight
from China to ASEAN
DHL's scheduled service using the new
China-Laos Railway is one of the six international economic corridors under
China's Belt and Road Initiative (BRI). The Laos section of the railway is
414-km that connects Kunming (China) to Boten, Laos'
northern border with China, to Vientiane in the south, on its border with
Thailand. The route cuts the journey time from Vientiane to the Chinese border
to less than four hours, compared to 15 hours by road (in normal conditions).
At Boten, the railway will connect with the BRI
network at Kunming, China, through another 595-km railway link, providing Laos
with a land link to global and regional supply chains.
DHL's scheduled service leveraging the
China-Laos Railway runs in both directions between China and ASEAN markets,
including Thailand, Vietnam, Cambodia, Malaysia, Singapore, and Indonesia,
providing an attractive, highly cost-efficient alternative when logistics costs
are at an all time high.
The two-way service combines trucking from
all over China to the hub in Kunming, running through the China-Laos railroad,
then onward with DHL's established road network service and back, with
significant cost savings and competitive transit times, providing a viable
transportation alternative. Examples of the services include:
·
Chengdu -
Bangkok – road/rail services are 78% cheaper and 2 days faster than airfreight
·
Kuala Lumpur
- Chengdu - road/rail services are 70% cheaper, same transit time compared to
airfreight
·
Shanghai –
Singapore - road/rail services are 38% cheaper, 4 days longer compared to
airfreight
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