For businesses reliant on the Asia-Europe trade route, recent developments have reshaped the logistics landscape.
The ongoing Red Sea Crisis has significantly impacted global supply chain, with many ocean liners rerouting ships around Africa's Cape of Good Hope, resulting in additional journey times of 10-15 days and increased costs. Major companies like Tesla and Volvo are among those feeling these disruptions.
How can businesses optimize their shipments in this challenging context?
Increased Capacity & Multimodal Transportation
To mitigate delays, new vessels have been deployed on key routes, stabilizing rates and increasing capacity. Notably, the China-Europe trade routes have seen significant enhancements.
The Asia-Mediterranean route, for instance, has increased its capacity by nearly 50% since January, while the Asia-Northern Europe route has grown by approximately 12%. Larger ships have also boosted capacity on the Asia-Europe trade lane by 24%.
Beyond capacity expansion, businesses and their logistics partners can adopt alternative routing strategies and opt for multimodal transportation to enhance efficiency.
Multimodal approaches, such as sea-air combinations via Gulf hubs, provide significant cost savings compared to pure airfreight while offering faster transit times than traditional sea routes. Shipping containers from Asia to Dubai or Los Angeles and then by air to Europe offers a more economical and timely option, potentially saving up to 40% on costs and reducing transit times by up to 60%.
Optimizing Your Asia-Europe Shipments
Looking for a reliable logistics and freight forwarding partner for your upcoming shipments between Europe and Asia? ASI Logistics specializes in seamless door-to-door logistics & freight forwarding solutions between these continents.
Strategically located in 7 key Asian hubs – in China, Vietnam, and Cambodia – we leverage our extensive network and the expertise of our European mother company to ensure comprehensive handling of your shipments.
Our wide range of services, agility, responsiveness, and customer-centric approach accommodate diverse industries including fashion, luxury, F&B, industrial equipment, toys, and sports equipment, meeting your specific needs with precision.
From navigating disruptions to streamlining operations, our services ensure your cargo reaches its destination efficiently, timely, and safely!
No matter the context, ASI Logistics, strong of 15 years of expertise, provides you with the most adapted logistic solution to fit your needs and ensure you enjoy the benefits of smooth operations.
Thanks to our seven offices, including six conveniently located on China's east coast logistic hubs (Shanghai, Qingdao, Xiamen, Ningbo, and Hong Kong), its two branches in Ho Chi Minh City, Vietnam, and Phnom Penh, Cambodia, and its worldwide network of logistic experts, ASI Logistics accompanies you at every step of your product's journey from, to and within Asia.
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Sources:
- Carranza, A. (2024, July 2). What’s behind the unsettling rise in ocean rates? Supply Chain Dive. https://www.supplychaindive.com/news/ocean-freight-market-rates-increase-us-east-west-coast-asia-europe/717698/
- Jeffrey, R. (2024, March 6). What’s driving Asia-Europe Trade? Air Cargo News. https://www.aircargonews.net/monthly-exclusive/whats-driving-asia-europe-trade/
- Michael Angell, S. E. (2024, July 15). Most Newbuild capacity headed to Asia-Europe amid ongoing diversions. Journal of Commerce. https://www.joc.com/article/most-newbuild-capacity-headed-asia-europe-amid-ongoing-diversions_20240715.html