When we at H. Daugaard repeatedly talk about "customized logistics", it is because tailor-made solutions almost always contain undiscovered opportunities for synergy effects. One of the opportunities that many of our customers benefit from, both financially and environmentally, is transportation via the rail network across Europe.

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Economically favorable solution with freight trains

Money isn't everything - but being cost-conscious has always been good business. And in these times of rapidly rising fuel prices and environmental taxes, it can be even more important to be aware of opportunities to reduce costs - not least transportation costs.

When transporting large volumes of goods over longer distances, freight train transportation is often an economically favorable solution.

At H. Daugaard , we have a well-established collaboration with some of Europe's largest players, including Deutsche Bahn, Green Cargo and ScandFibre Logistics (SFL). This ensures full traceability and efficient transshipment to the rail network on the journey through Europe. From our warehouses in Vamdrup and Kolding, there is direct access to the rail network, ensuring efficient transshipment to and from the railroad.

A rolling warehouse

Time is money - but beware of thinking that fast solutions are better than slow ones. It's far better to look at the whole picture and consider the overall economy instead of assessing each part individually. There are costs associated with storing goods, whether you have your own storage facilities or use our storage solutions.

So think of the time your goods are on the road as a 'rolling warehouse'. When the freight car arrives in Denmark, we have the equipment to quickly and efficiently unload it and load it onto trucks that have unparalleled flexibility when transporting it the last few kilometers to your business door. This means your business doesn't need to have direct access to railroad tracks to reap the full benefits of using freight trains in your logistics solution.

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5 things to consider before opting out of freight trains

Different products, companies and markets have different needs. While there are many benefits of using the rail network in logistics solutions, not all companies will reap the same benefits from moving goods via freight trains. You can therefore consider the benefits:

Need for flexibility

Many companies overestimate the need for flexibility and end up choosing too costly solutions for large parts of their transportation needs. Often, it's only at the ends of the journey that the highly flexible transportation provided by a truck with a skilled driver is needed for loading and unloading. For longer distances, it may make more sense to transport the goods via the rail network.

At H. Daugaard , we have the equipment and access to very flexible reloading between truck and freight train, which minimizes both the time and costs of combining the two modes of transport - and as a customer you get the well-known flexibility in delivery.

The need for speed and adjustments to freight volumes

Transportation via the rail network has its greatest advantages in freight, where time is not the only parameter that determines the success of the transport. In other words, a truck with two drivers traveling directly from southern Europe to Denmark often arrives faster than goods sent by freight train on the same route.

While many industries need speed and flexibility in part of their freight delivery, this need can often be met by combining several different transportation options. For example, there may be an economic advantage in transporting 80% of the average freight volumes to and from a company via rail, while the faster trucks are used for the remaining 20%. Such a solution allows for relatively quick scaling up and down depending on demand and market fluctuations.

Distances

If there are no rails along the entire route from the sender to the recipient of the goods, reloading between train and truck can put too much strain on the overall transport solution on short distances. For example, if the goods are going the 26 kilometers from Kolding to Jels, it would not make sense to use the railway to Vamdrup and then transfer to truck for the last 12 kilometers. However, it doesn't take many hundreds of kilometers for the rail network to prove to be an attractive option.

H. Daugaard offers warehouse solutions in both Kolding and Vamdrup, from which both locations can be loaded efficiently to both truck and rail, so you have full flexibility for the solution that suits the individual delivery.

Environmental impact

Climate change, a global political agenda and an increased focus from consumers mean that many companies are investing large sums of money in initiatives that help minimize their climate impact. If climate change is also on your company's agenda, switching transportation to rail may be a "low-hanging fruit" that may mean changing a few habits, but the benefits will far outweigh the investment to achieve them.

Economy

Finally, rail transportation is often a more economical solution compared to truck transportation, for example. Especially for freight types where the profitability lies in the margins, it is worth paying attention to the possibilities of reducing transportation costs.

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Want us to tailor a logistics solution for your business?

H. Daugaard is a market leader in Denmark within rail transportation, reloading and distribution of steel products, paper products and building materials.

We continuously develop our rail concept in close collaboration with our customers and partners, which is why we can tailor the market's most optimal logistics solutions via the European rail network.

If you're curious about the potential synergies and benefits of a customized logistics solution, we're ready to help you. Contact us by email salg@h-daugaard.dk or phone +45 79 38 12 44 and let us make suggestions for improvements.