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New LCL services between Rotterdam and Asia

DACHSER's air and sea freight division is significantly expanding its services. This involves new fixed LCL connections between the port of Rotterdam and various ports in Asia with fixed departure times.     

Since the end of 2023, DACHSER has been setting up weekly LCL import and export connections between Rotterdam and several ports in Asia. Picture: DACHSER

Since the end of 2023, DACHSER has been setting up weekly LCL export connections from Rotterdam to the ports of Shanghai, Nhava Sheva and Dubai (as a hub for distribution within the Gulf States) and LCL import connections from Shanghai and Shenzhen to Rotterdam. More LCL connections will be added in 2024. For these LCL connections, DACHSER uses its own consolidated container.

LCL (Less than Container Load) is very advantageous for customers who do not fill a full container with their shipment. Customers then share both the space and the cost of a container. This is not new for DACHSER in Benelux, but what is new is that DACHSER now loads and unloads shipments in their own logistics facility on a weekly basis at fixed times. Consolidating in its own container does not involve co-loaders, which eliminates an interface in both ports. By eliminating these links, the entire logistics chain is managed by DACHSER. The export shipment is picked up from the sender in Europe through DACHSER's own network and then transported by truck to a Container Freight Station (CFS) in a DACHSER warehouse. Here, the shipment is bundled into a container together with shipments from other customers. From the CFS, the container is shipped to the other continent then, where DACHSER’s Air & Sea Logistics office takes care of the import operations and delivery to the final destination. For LCL shipments incoming from overseas into Europe, the LCL consolidation containers are brought to a CFS at the nearest DACHSER branch. Here the shipments are unloaded and customs cleared, only to be delivered to the final recipient through the DACHSER network.

"Because we manage the entire supply chain, we always know where the shipments are and when they will be shipped, which gives us sovereignty over the logistics process," explains Wilco Versteegh, Managing Director DACHSER Air & Sea Logistics Benelux. "In addition, the elimination of links ensures that goods get from source to market faster. This can help minimize inventory costs and can promote consumer satisfaction."

Port of Europe

The DACHSER Rotterdam Logistics Centre, partly due to its location close to the port of Rotterdam, acts as a crucial link in the logistics provider's network. With the Air & Sea Logistics, Contract Logistics and European Logistics (road transport) divisions on the same industrial estate, under the leadership of Aat van der Meer, Managing Director DACHSER Benelux, the lines of communication are short and decisions can be made quickly. These advantages make the branch an ideal starting point for the 90 daily road groupage departures to destinations throughout Europe.
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Contact Vernice Chu Communications Manager Asia Pacific
vernice.chu@dachser.com

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APAC countries signed world's largest free trade agreement

On November 15, 2020, leaders from 15 Asia Pacific nations came to an agreement to form a free trade bloc under the Regional Comprehensive Economic Partnership (RCEP). The agreement is intended to facilitate trades among the member countries by removing tariffs and stimulate the economy amid the COVID-19 pandemic.

Main points at a glance:

  • RCEP is a free trade agreement in the Asia-Pacific region.
  • Fifteen countries signed the agreement including Australia, Brunei, Cambodia, China,  Indonesia, Japan, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, South Korea, Thailand, and Vietnam.
  • With the participation of the 15 countries, they have formed the world's largest free trade zone, covering about 30% of the world's population and nearly 30% of global GDP.
  • China’s presence notably increases the impact of the agreement and boosts the total GDP of the RCEP member countries.
  • India did not join the partnership over concerns that cheap import products might pose a harm to local producers.
  • The new free trade zone is bigger than the US-Mexico-Canada Agreement (USMCA) and the European Union.
  • The RCEP will reduce taxes on most goods over a 20-year period, streamline customs procedures, regulates the field of intellectual property and digital trade and replace a number of bilateral trade agreements in the region with one set of rules.
  • Some benefits are expected to be seen in 2021 once participate nations complete their domestic ratification procedures.

What does it mean to the global supply chain?

  • The RCEP is expected to eliminate a range of tariffs and quotas on most of the goods traded within the region over a 20-year period.
  • The "rules of origin” may have the biggest impact. Under RCEP, parts from any member nation would be treated equally, this gives companies in RCEP member countries an incentive to look for supplier within the region.
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  • China, Japan and South Korea are the traditional key players for electronics, automotive, textiles and garments industries, having them in the RCEP would ensure supply chain stability to ASEAN countries.
  • It gives an incentive for companies to look for supplier within the RCEP member countries, thereby laying the foundation for enabling an accelerated GDP growth within the region.

As RCEP will further fuel the ongoing manufacturing shifts within Asia, it not only affects companies within the member countries but is also relevant to any companies worldwide who have business in the region.

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