By switching modes from Air to Rail, our customer realised 44% cost reduction on key lanes while maintaining service level requirements.
Air freight is fastest, but also the most expensive shipment method
The customer has regular shipments from Germany to China. Due to the service level requirement, most of the shipments were sent by air. The monthly volume was up to 300 tonnes.
Rail freight is cheaper than air freight
With the Chinese government heavily investing in infrastructure for rail freight, DSV proposed a customised rail solution for transport all the way from Germany to China. This reduced transportation costs while still meeting service level requirements.
Benefits for the customer
- First two trial shipments by rail proved that the service requirement is met.
- Total rail cost reduction : 44.5% compared to air freight.
- With these proven results, the customer is working with DSV on realising more cost savings by shifting more air shipments to rail.