- Supporting Establishment of Resilient Global Supply Chains in Response to Geopolitical Risks -

Yamato Holdings Co., Ltd., headquartered in Tokyo, launched an international multimodal transport service by truck and rail connecting Southeast Asia and Europe on May 1, 2024.

Logo: https://cdn.kyodonewsprwire.jp/prwfile/release/M106587/202404249931/_prw_PI1fl_17kUqzDz.jpg

1. Background and Purpose

The Southeast Asian region is a hub for production facilities of electronics-related products and automotive components from various countries worldwide. Finished goods are shipped from the region to markets across the globe. Historically, the shortest maritime route -- the Suez Canal route -- has been predominantly used for transporting goods from Southeast Asia to the European market. However, since late 2023, armed attacks on vessels by militant groups in the Red Sea and its adjacent waters have continued. As a result, many ships have been forced to take a longer route around the Cape of Good Hope in South Africa, significantly impacting global logistics and economies. The transit time to the destination has been extended by up to 20 days compared to the Suez Canal route, leading to substantial increases in maritime freight rates and insurance costs due to the detour. Additionally, geopolitical risks have become more pronounced, emphasizing the critical need for establishing a robust global supply chain that can swiftly adapt.

Yamato Holdings has helped customers build their global supply chains across 24 countries and regions. Furthermore, its group company, Overland Total Logistic Services (M) Sdn. Bhd. in Malaysia has been providing cross-border truck transport services utilizing container trailers between Southeast Asian countries (*) and China since 2001.

To build a resilient global supply chain between Southeast Asia and Europe, Yamato Holdings introduced an international multimodal transport service by truck and rail on May 1, 2024. The new transportation option offers seamless connectivity for the customers.

Moving forward, the company will continue to propose solutions that optimize the customers' entire global supply chains, aiming for total logistics cost reduction, production efficiency improvement, and environmental impact reduction.

(*) Singapore, Malaysia, Thailand, Laos, Vietnam and Cambodia

2. Service Overview

By utilizing Overland Total Logistic Services' truck transport network for the Southeast Asia-China segment and partnering with rail service providers for the China-Europe segment, Yamato Holdings will provide seamless transportation through the delivery destinations. This solution has shorter transit times than maritime transport via the Cape of Good Hope, and lower cost and less greenhouse gas emissions than air transport.

Service Flow Example: International Multimodal Transport from Thailand to Germany

Image: https://cdn.kyodonewsprwire.jp/prwfile/release/M106587/202404249931/_prw_PI2fl_pCOk6x48.jpg

- Service Commencement Date: May 1, 2024

- Service Coverage Areas: Southeast Asia (Singapore, Malaysia, Thailand, Laos, Vietnam and Cambodia) to Europe (excluding Ukraine and Belarus) up to the specified delivery destinations.

- Transportation Methods: Container leasing or consolidated shipments based on cargo volume.

Reference: Southeast Asia to Europe Transport Routes

https://cdn.kyodonewsprwire.jp/prwfile/release/M106587/202404249931/_prw_PI3fl_P4nIbG34.jpg