Why is the Export of Groupage Cargo more Popular than Air Freight?


Today, in logistics, the service for export transportation of groupage cargo by various modes of transport is becoming more popular, since in the current circumstances, the best option is to send the cargo with consolidation in Moscow to Europe by road, in comparison with air transportation.

Reasons why the export of groupage cargo is becoming popular nowadays:

  • March 2020 – cancellation in international passenger air operation, exporters are deprived of a very flexible option to send cargo in the baggage compartments of passenger flights, sending cargo is only possible on cargo flights.
  • March–April 2020 – the average air freight rate for exports to the EU/Asia tends from 1-1.5 USD/kg to rates in the area of 3-3. 5 USD/kg.
  • March–April 2020 – the set of options for export shipments was about 20 air companies with the necessary direct flights, various departure airport, as a result, more or less stable working for export was only one company – Sheremetyevo.
  • March–April 2020 terms of air transportation increase from the standard 3-4 days to 7-12 days, when booking flights on the "future", and cargo is ready for shipment at the departure airport.
  • March 2020 – the EU/China borders are closed for personal transport, as a result, vehicles up to 1.5 ton are" removed" from the market, including Ford Transit, Mercedes Vito, Sprinter, etc. Only trucks with a built-in onboard computer for controlling the driver's working time can go (the possibility of extra fast delivery of small goods by very small cars is leaving the market).
  • March 2020 – container trains from/to China (all provinces except Wuhan) towards the Russian Federation/EU are fully launched.
  • March 2020 – the EU removes restrictions on monitoring compliance with the work and rest regime of heavy goods vehicles drivers.
  • March–April 2020 – there are periodically news about the closure of the borders with China for the passage of cargo transport (although not always everything is true), but this speculatively affects the prices for road transport from China to Russia and back.
  • March 2020 – mass outflow of business to marketplaces, local/international/specialized.
  • The c2b2c trading format is gaining popularity.
  • March–April 2020 – China is one of the most popular export markets, including for Russian products.
  • Switching to the P2C product sales scheme (production-to-customer).
  • Mergers and acquisitions in the courier/parcel/delivery services market.
  • Significant movement towards digitalization of any standard ERP systems, including WMS systems, a real transition to Blockchains – as the inevitable loss of customers/sales/volumes.

How does cargo consolidation work?

  • Delivery to the consolidation warehouse in Moscow by air or by road across Russia, or acceptance of cargo to the consolidation warehouse from a supplier
  • Shipping from a consolidation warehouse several times a week
  • Exit of prefabricated cars from Moscow on Thursday-Friday
  • Delivery of goods from any regions of Russia
  • Weekly delivery of goods from the consolidation warehouse in Lithuania throughout Europe
  • Professional and fast customs clearance, including customs clearance in the EU.

Features of cargo consolidation for shipment to China

  • Need for certification documents in China
  • If there are no documents for certification, there is the possibility of placement in a bonded warehouse at the destination station
  • The possibility of consolidation of shipments to China in the warehouses in Moscow, Warsaw, Vilnius.

Features of cargo consolidation for shipment to the United States

  • Possibility of cargo consolidation in customs warehouses in Russia and Europe
  • Well-established work with service platforms for marketplaces, as well as with the marketplaces themselves.

Stages of transportation

Stages of transportation

Comparison of transportation methods for certain destinations

Comparison of transportation methods for certain destinations