Rail Services: market situation between China and Europe

Statement by Dachser CEO Burkhard Eling on the military conflict in Ukraine

Peace and the free movement of goods are fundamental prerequisites for the positive, free development of all societies. In this spirit, Dachser has grown as an international logistics provider over the past decades. We therefore deeply regret the escalation of the military conflict in Ukraine. Among other things, the conflict will also have a substantial impact on supply chains in Eastern Europe. 

Our first priority is the safety of all drivers transporting consignments on behalf of Dachser. We have therefore today imposed an immediate takeover and loading stop for all shipments to Ukraine. This applies to all European transports of our Cargoplus service segment, which specializes in FTL and LTL transports to the CIS countries, among others, as well as to all transports from the European Logistics network that are handled in Ukraine by our partner ACE. Regular traffic from our platform Strykow (Poland) to Kiev will be discontinued. All trucks that are currently still on their way to Ukraine have to be returned in coordination with the customers. We are in close contact with our Ukrainian partner, who has also closed his warehouses.

In air freight, the airspace over Ukraine has been closed in a wide radius. Take-offs and landings are not possible here, so that congestion at the alternative airports is to be feared. 

Our European Logistics and Air & Sea Logistics teams are closely monitoring developments in the situation and are in close contact with our customers. This also applies in particular to restrictions on the movement of goods that may arise in the coming days as a result of the sanctions announced against Russia. 

• Background - Dachser's activities in Ukraine and Russia. 

Dachser does not have its own locations in Ukraine, but works there with its partner ACE Logistics. The Estonian company is also Dachser's partner for the Baltic states and joint venture partner in Finland. The Cargoplus service segment handles additional full truckload services.

In Russia, Dachser has been represented by its own national company since 2008 and provides services in the Road Logistics and Air & Sea Logistics business segments. Around 160 staff are employed at seven locations. In 2020, Dachser Russia handled around 17,000 consignments and generated revenue of EUR 21.6 million.

Golden Week 2024 in China

From October 1 to 7, most businesses and factories in China will be closed for the National Day Golden Week holiday. As one of the world’s most important economies, this extended shutdown can significantly impact the international supply chain. It’s important to start preparing now to minimize potential disruptions.

Golden Week is a 7-day national holiday in China that celebrates the establishment of the People’s Republic of China on October 1. The holiday lasts from October 1 to October 7, during which many Chinese people travel for leisure or visit family across the country. Like many other businesses, DACHSER in China will be closed during Golden Week and will resume normal operations on  October 8.

Most businesses and factories will be closed during the week-long holiday, meaning that production will be at halt. Airports and seaports will keep operating but with reduced manpower due to low production volume from factories. Normally government institutions such as customs offices will be closed from October 1 to 3.

Since China, one of the world’s biggest economies and production countries, will come to a standstill for a whole week and factories may not run at full capacity as soon as the official holiday ends, the plunge of production volume would have an impact to the worldwide supply chain.

To help reduce potential interruptions to your supply chain during Golden Week, consider the following steps:

• Communicate with your suppliers and customers to make arrangements for sufficient stock and manage expectations
• Discuss your planning with us and prepare an accurate shipment forecast for long-term planning, so we can offer you the most suitable solution that fits your budget and schedule
• Place your booking earlier and pay attention to the cut-off dates.
• For sea freight, it is recommended to book 4-6 weeks before the start of holiday
• For air freight, it is recommended to book 1-2 weeks before the start of holiday

If you have any questions, please get in touch with your usual local DACHSER contact who will be happy to assist and plan the next steps with you together.

The new DACHSER magazine is here!

One of the key phrases of the last few months at DACHSER was “Keeping the good and shaping agility.” This is also the title of the interview with Burkhard Eling in the latest DACHSER magazine, in which DACHSER’s new CEO explains what these words mean to him.