Peculiarities of Transport & Logistics Market

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Peculiarities of Transport & Logistics Market

2018-02-01

You have been working in freight forwarding market focusing on Russia and the CIS market for many years What problematic issues are encountered when arranging freight forwarding in these directions?

ABIPA Company has been present in the market for 10 years and thereby has obtained logistics knowledge and experience not only from Russia and the CIS countries but also on a worldwide scale, as we are the members of the worlds largest network of independent freight forwarders WCA for 4 years.

However, you are right stating that logistics services in Russia and other CIS countries have specific features, first of all their customs procedures that seem complicated to Europeans, also restricted import of certain goods such as foodstuff. 

Greater attention should be paid to the documents accompanying the freight forwarding. During cargo transportation to Russia and the CIS countries the pre-shipment inspection of all supporting documents should be carried out more carefully because any error correction in such documents at cargo arrival to a customs clearance point would be much more sophisticated and time-consuming. A considerable part of EU companies are not very attentively focused on paperwork for export formalities, therefore together with our colleagues in Russia and other CIS countries we have to double-check the document conformity to customs requirements for importers.

Russian custom clearance procedures are the most popular topic of conversations with foreign partners during the international events and exhibitions. Having long-term experience in this market we can offer a smooth custom clearance process to our customers both in the customs stations of Moscow and Moscow Region, as well as in the airports of Sheremetyevo, Domodedovo and Vnukovo, or just in the posts within the forwarding route; cargo clearance is also available in Vladivostok and Saint Petersburg.

 

What is the current situation of freight forwarding EU-RUS? What should be expected and anticipated by Lithuanians, Poles, Germans, Romanians, Bulgarians, Czechs and Slovaks?  It is worth covering all the regions.

In reply to this, firstly, I would like to emphasize that all the EU member states, depending on their economical development, geographic location, market and other factors, have different freight flows to Russia and other CIS countries. This is also the case that determines forwarding charges or rates, consequently freight forwarding would be cheaper from the countries having high freight flows. The above rates are influenced by seasonality, exchange rate, fuel price variations and taxation novelties.

It should be mentioned the intensification of railway forwarding trends. This is related to the project of New Silk Road launched by the People's Republic of China for bridging Europe and Asia. The very first train from China reached London in January 2017.

To conclude all the aspects mentioned, the growth of freight volumes and carriage both to Europe and Asia could be predicted, however such growth will not be significant. Freight forwarding via railway transport is expected to grow.

 

New Silk Road (NSR) 

Please tell us about the current situation (RUS and LT)

At present, China is engaged in intensive development of NSR, involving European towns.  Although now it is dare to mention financial benefit, of course the participation of Lithuania and Russia in this project will be beneficial to them. In order to obtain maximum benefit the investments for current infrastructure improvement are essential. 

Nevertheless, any forecasted drastic growth will be subject to market supply and demand. For now ABIPA Company also offers all railway freight forwarding services and proven / well-run logistics procedures NSR.

 

Why Russia is leaving the project?

 

Different opinions about this project are expressed in public sphere some countries are more enthusiastic in accepting the participation rules than others; the project itself, involving many countries, is global, and the implementation is not very precise, settlement of obligations undertaken is not clear. The things are said that the project maintained by the state funds so far is loss-making but promising and viable at the same time. Probably the concerned parties consider perspective or benefits in a different way.

 

However Russia has not officially announced its withdrawal from the project yet.

 

What about the benefit to separate regions? The Baltic states, Ukraine, Czech Republic, Slovakia, Romania, Poland and etc.

Modernization of old infrastructure first of all, development of new one, installation of new branch lines. New jobs, freight traffic rearrangement. 

Successful project provides competition to one of the most popular trading areas such as airborne and seaborne transportation sectors. As middle-class is rapidly increasing in China, the flows of high quality goods to be delivered from EU to China would also increase.

With the intensified international trade both European and Asian manufacturers and consumers will feel the benefit. Taking into account grand projects of PRC, referring to Supplychaindigital, New Silk Road project could generate over $2.5 trillion of annual trade value by 2025.  http://www.supplychaindigital.com/logistics/chinas-belt-and-road-new-silk-road