Accurately balancing supply and demand management, optimizing inventory levels, and forecasting future needs is challenging.
GEODIS commits long term airfreight capacity to Asia-Europe corridor
As part of its AirDirect service, which is an own controlled network (OCN), leading global logistics provider GEODIS has confirmed a two-way schedule of flights from China to Europe and back, through to early 2021, guaranteeing its customers a regular & reliable service.
GEODIS originally instigated its full aircraft charter arrangements on this route in March with ad hoc flights and introduced a weekly timetable in June to meet the urgent need for air cargo capacity which had diminished due to the effects of the pandemic. Now, with both freighter and passenger belly-hold space still in short supply, the logistics provider has announced a permanent schedule reaching into next year. Weekly direct flights will depart from Shanghai (PVG) every Monday and from Amsterdam (AMS) each Sunday to service what is expected to be a post-COVID resurgence in demand during what is traditionally a fourth quarter peak season.
The advent of the China-Europe-China service brings the company’s total investment in GEODIS’ OCN to over €70 million. More than 400 flights have been successfully completed across Asia, Europe, North and Latin America to date. Full details are available here: https://geodis.com/customer-advisory-bulletin
Among the customers requiring such a service are, in particular, a European auto manufacturer equipping its plant in China with sub-assembly parts.
In addition, Lenovo, a global leader in the manufacturing of personal computers, smartphones, workstations, computer servers and smart IoT devices, is one of GEODIS’ customers of its AirDirect Mexico service (Hong Kong/ Guadalajara) as well as its weekly direct flights from Shanghai-Amsterdam. GEODIS ensures the transportation of Lenovo’s products are safely and securely handled, helping Lenovo to deliver its components to factories and finished goods to customers in a timely manner.
“It is vital for our customers in China to be not only assured of regular capacity but also that their freight partner is controlling the transport service network, including flight operations,” says Onno Boots, GEODIS’ Regional President and CEO for Asia Pacific. “As a growth partner for our customers, GEODIS understands this need well. The “Own Controlled Network” initiative is a prime example of how we are extending control of our multi-modal network. In addition, we are exploring options to establish a connection between China and India, as well as linking Hong Kong and Singapore in the network. These efforts aim to provide a hub that will seamlessly link with our GEODIS Asia Road Network.”
“Both the Amsterdam and Shanghai hubs are ideal for coordinating multi-origin and destination cargoes. Our network of operations in Europe, as well as Asia is designed to maximize connectivity, giving our customers full flexibility in terms of pick-up and delivery points,” says Stanislas Brun, SVP Global Air Freight. “The regularity and reliability of this newly-established service, coupled with the visibility provided by our IRIS systems technology*, will help manufacturers and retailers rejuvenate their business as the global economy recovers post-COVID. We hope to help them prevent further supply chain disruption and reduce the inevitable temptation to increase buffer stock, with its consequent costs.”
*Editor’s Note: IRIS gives GEODIS customers information on the real-time status of their shipments in addition to access to relevant documentation; label printing when appropriate; exception management through ‘mile-stone’ alerts and KPI reporting. The automated booking system ensures data accuracy and saves time. It also enables customers to review local charges and full end-to-end costs; arrange pick-ups and final mile deliveries and details of all port-to-port rates are available through the pricing engine.