Multimodal Results 2019

Transportation by rail, sea and road is a popular logistics block in the world of cargo turnover. Today the multimodal sector of the world accounts for 98 % of the traffic.
Let us take a closer look at the current state of the multimodal transport market, its trends and prospects in ACEX version.

Let’s start with a sea
The trend towards the transition to business automation affected logistics in general, in particular the sea freight market. A new modern berth has been opened at the port of Novorossiysk, aimed at automating processes, which means that the processing speed and service for customers are improving.
In addition, most shipping lines, such as Maersk and FESCO are trying to switch to an electronic system of quotations, in order to make it easier, faster and more transparent for the customer to receive a calculation for the goods delivery from point A to point B.
‘We’re trying to be “in the loop”, using the systems of our partners’ sea lines. This helps to give a prompt response to the client at market value, which is a huge plus for our work,’ says Denis Bobrakov, Commercial Director of ACEX in Novorossiysk. ‘More and more companies are trying to use online calculators in their systems, because people do not want to communicate with each other or managers. It is easier to get an answer from a soulless machine than a person.’
Due to the fact that the preference is increasingly focused on road transport (as a more affordable type of transportation), more and more new types of deliveries emerge on some routes.
‘Of course, for many forwarding organisations, engaged in sea container transportation, this has caused a decrease in cargo volumes, but, fortunately, the experience and service of our company helped us not only to “stay afloat” in all senses of the expression, but also to increase this year’s performance by 40 % compared to 2018,’ says Denis Bobrakov.

Continuing on the road
Cargo transportation by Russian transport in 10 months of 2019 amounted to 6.87 billion tons. This is 2.1 % more than in 2018. Almost all modes of transport showed a decline in volumes. However, only road transport increased by 3.8 % and amounted to 4.7 billion tons (according to SeaNews).
Why is this happening? The answer is simple. Trucking is the most budget-friendly type of cargo delivery, enabling many cargo owners to save significant amounts on delivery.
‘Despite the fact that roads all over Germany have become more expensive and, as a result, transportation rates have increased as well, our services continue to be in demand. The transport sector in Europe continues to grow, the turnover of the company keeps increasing and the road transport entrusted to ACEX is expanding,’ commented Edvinas Neverovskis, Director of ACEX representative office in Lithuania.
In addition, there is a positive trend in the development of road transport from China, featuring new directions and new ways of cargo delivery.
‘In addition to the usual air cargo delivery, we are actively developing the road and railway direction Suzhou-Russia, and consistently making deliveries without the use of aircraft, which indicates the great potential of this direction,’ said Ken Hui, CEO of FANS TRANS, ACEX member in Hong Kong.

Finishing on railway lines
This year, carriage of goods by rail decreased by 0.7%, which amounted to 1,067 billion tones (according to SeaNews).
One of the main news in the field of railway transportation in 2019 was the announcement of three electronic platforms – Digital Logistics (operator of the electronic trading Freight Transportation platform of the Russian Railways), Rail Commerce (operator of the Railcommerse wagon exchange) and Simple Transportation (operator of the wagon aggregator Vagonline) – beginning joint operations.
The Association of 3 sites suggests that it is almost impossible to master the railway transportation market by one company. The same goes for the survival of small operators. Companies with up to 1,000 wagons on the balance sheet either sell them or rent them to the big players.
‘If the service that will be offered is simple and flexible, then development is inevitable! We, freight forwarders, can use such a system if it is more convenient and cheaper than working with operators under direct contracts,’ commented Oleg Degtyarev, Director of RusTrans, ACEX member in Moscow.
In conclusion, we can say that the trend towards automated processes, the opening of new transport routes and the unification of the major players in the railway market shows that the development of multi-modal industry is positive, ensuring a continuous and stable growth of the freight market.

Prepared by ACEX team

 

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The magazine JŪRA has been published since 1935.
International business magazine JŪRA MOPE SEA has been
published since 1999.

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