Multimodal Transport – The Alternative Path for Southeast Asian Goods to Reach European market

Southeast Asia is rising strongly, becoming a global manufacturing hub for electronics and automotive components. However, the vital sea route through the Suez Canal, the shortest link connecting Southeast Asia with the European market, is facing numerous uncertainties. Since late 2023, attacks targeting cargo ships in the Red Sea and surrounding areas have forced many vessels to choose a longer route around the Cape of Good Hope (South Africa). As a result, transportation time is extended by 20 days, accompanied by soaring sea freight and insurance costs.

The increasing geopolitical risks serve as a wake-up call for the need to establish flexible global supply chains that can quickly adapt to changing circumstances. Recognizing this, Yamato Holding – a Japanese group specializing in express delivery, transportation, and logistics services – has pioneered cooperation with multiple partners to launch an international multimodal transport route starting from May 1, 2024. This service promises to ensure a smooth, safe, and efficient flow of goods between Southeast Asia and Europe.

Multimodal Transport – A New Path for Southeast Asian Goods to Reach the Open Seas

Multimodal transport is a method of transporting goods from the point of origin to the final destination using at least two different modes of transport, based on a single transport contract. This approach offers many practical benefits for businesses and the economy amid the current geopolitical turbulence.

Source Vietnam Logistics: The red area represents the scope of road and rail operations in the multimodal transport model

Yamato Holding's service is a solid bridge, connecting 6 Southeast Asian countries (Singapore, Malaysia, Thailand, Laos, Vietnam, and Cambodia) with the vast European market (excluding Ukraine and Belarus).

The strength of this transport service lies in the seamless combination of road and rail. For the Southeast Asia - China segment, Yamato leverages its existing Integrated Road Logistics Service network. For the China - Europe segment, it collaborates with reputable rail service providers.

The transportation route is optimally designed. According to the plan, goods are received from shippers in Southeast Asia. For example, a shipment from Thailand will be transported by road to China. In China, the goods are transferred to the transcontinental railway line, passing through Kazakhstan and Russia to enter Europe. The first destination in Europe is Poland (expected after 23-25 days from departure), followed by Germany (after 27-30 days). From Germany, the goods will be distributed to the final destinations by truck.

Source Vietnam Logistics: An example of a detailed route for the multimodal service from Southeast Asia to Europe, starting from Thailand and ending in Germany

Potential and Advantages of the Southeast Asia - Europe Multimodal Transport Route

The multimodal transport route connecting Southeast Asia and Europe is not just an ordinary transportation solution; it opens up enormous potential and promises to become a strategic trade bridge between the two regions, offering superior benefits.

The multimodal transport route allows businesses to transport goods faster. Instead of having to take the sea route around the Cape of Good Hope, which is currently experiencing disruptions, goods will be transported by road and rail, significantly reducing the time to reach customers.

Yamato Holding's route completely avoids the Red Sea area, which is fraught with maritime security risks, ensuring safe transportation of goods and avoiding additional costs incurred due to instability.

The multimodal transport model allows flexibility in adjusting routes and modes of transport when necessary, helping to maintain an uninterrupted supply chain that adapts to the unpredictable market and geopolitical changes. The combination of road and rail helps optimize transportation and insurance costs, resulting in higher economic efficiency for businesses.

Tan Thanh Container's Contribution to the Development of Vietnam's Logistics Industry

Amidst the ever-changing global supply chain and the clear recognition of the crucial role played by multimodal transportation, Tan Thanh Container - a leading company in Vietnam's logistics industry - has been establishing sustainable values and continuously striving to provide high-quality container and skeletal semi-trailer solutions to meet the diverse transportation needs of customers.

Among their offerings, the Fuwa refrigerated container product line stands out as an ideal solution for international multimodal transportation, compatible with road, sea, and rail transport routes. Equipped with modern technology, superior insulation capabilities, and durability, Fuwa refrigerated containers ensure that goods are always optimally preserved throughout the entire journey.

Beyond delivering exceptional product quality, Tan Thanh Container is also an embodiment of dedication and professionalism. With a state-of-the-art production system and a highly experienced team, every service provided by Tan Thanh Container is a commitment to safety, speed, and efficiency, serving as a solid foundation to help Vietnam's transportation industry confidently reach new heights and stand strong in the global market.

Contact information:

Tan Thanh Mechanical Trading Joint Stock Company

Address: No. 14, Street No. 15, Quarter 4, Linh Trung Ward, Thu Duc City, Ho Chi Minh City

Phone number: 0968 039 939

Email: info@tanthanhcontainer.com

Website: https://tanthanhcontainer.com/