Nikolai Sourcing Ltd releases results of study

According to the study results, around 98% of the trade from China to Finland is transported by sea freight since it offers competitive rates and wide availability. For large or heavy consignments, shipping through the Trans Siberian Railway (TSR) represents an important alternative to sea freight since the transit times are shorter. However at the moment, the freight fares for the TSR are high and there is no reliable operator for single containers from China. The strength of the TSR is the block train modality where companies can benefit of short transit times and some cost savings if they transport volumes big enough to fill a full train.

The usage of air freight has been increasing during the past decade and it is suitable for valuable goods, urgent supplies or for products with short “shelve-life”. It is the fastest method and offers other benefits such as lower inventory holding costs. A slower but cheaper option is the combined sea-air transportation which is faster than sea transportation and around 30% cheaper than air freight. It is suitable for valuable and light consignments; however the availability of the service is limited due to tight air cargo space capacity.

The study concludes that sea freight will continue being the most used mode of transport and states that railway transportation holds the potential to take a part of the share if the right measures are taken to increase competiveness and availability of the service. In the other hand, air and sea-air freight will continue serving specific needs.

The study contains information regarding the usage of different transport modes during the past decade and outlines the transportation situation during 2009. Criteria for transport mode selection are provided, and the transport corridors available from China to Finland are described. Freight costs comparisons between different modes of transport are presented, based on scenarios representing typical imports by medium and small enterprises. In addition, a special chapter is dedicated to railway transportation through the Tran Siberian Railway including its recent situation, future prospects and considerations when using this service. Finally suggestions and conclusions are provided in order to ease the decision process making when choosing the best transport mode.

The study relies equally in primary and secondary data, and compiles a big part of the existing information spread out in dozens of studies and publications. It has been elaborated by Gonzalo Gomez, a trainee working in several projects within Nikolai Sourcing.  For those interested in acquiring a copy of the study, please contact Nikolai Sourcing’s managing director.

Conducting research is part of Nikolai Sourcing’s continuous effort to keep on providing undisputed expertise and competence when sourcing from Asia.

Helsinki, 20th of April 2010

Edvard Krogius
Managing Director
+358 50 322 9392

< Takaisin