The Japanese holding company for courier, transport and logistics services, among others, introduced an international intermodal link on 1 May to build a resilient global supply chain between Southeast Asia and Europe.
The Southeast Asian region is the centre of industries manufacturing electronic products and automotive components from various countries around the world. The shortest sea route – via the Suez Canal – was mainly used to transport goods from Southeast Asia to the European market. However, since late 2023, armed attacks by militant groups on cargo ships have been ongoing in the Red Sea and adjacent waters. As a result, many vessels have been forced to take a longer route around the Cape of Good Hope in South Africa, which, according to Yamato Holdings Co. Ltd. is affecting global logistics and the economy.
“Transit time to destination has been extended by up to 20 days compared to the Suez Canal route, leading to a significant increase in ocean freight rates and insurance costs due to the diversions. In addition, geopolitical risks have become more pronounced, highlighting the critical need to establish a robust global supply chain that can adapt quickly,” explains the Japanese company.
To create a resilient global supply chain between Southeast Asia and Europe, Yamato Holdings launched international multi-modal transportation – by road and rail – in early May 2024.
The areas covered by the service are Singapore, Malaysia, Thailand, Laos, Vietnam and Cambodia in Asia and Europe (excluding Ukraine and Belarus).
As part of the new link, Yamato is using the Overland Total Logistic Services trucking network on the Southeast Asia-China section and working with rail service providers on the China-Europe section.