11-01-2022
– When we, at H. Daugaard, again and again speak of “customized logistics” it’s because tailormade solutions almost always come with unexplored possibilities for synergy effects. Transport by rail through Europe is one of the options which can provide cost effective and environmentally friendly advantages to many of our customers.
Economically favourable solution
Money isn’t everything – but a cost-conscious approach to business can never be faulted. With rapidly rising fuel costs and environmental taxes, it is more important than ever to be conscious of the possibilities to reduce costs – especially transport costs.
If large volumes of cargo are to be transported over long distances, transport by freight train is often an economically favourable solution.
H. Daugaard has a well-established cooperation with some of Europe’s largest operators, including Deutsche Bahn, Green Cargo and ScandFibre Logistics (SFL). This ensures your company full trackability and efficient reloading to the railroad throughout Europe. From our warehouses in Vamdrup and Kolding in Denmark, we offer direct access and ensure efficient reloading to and from the rail network.
Environmental advantages
Cargo transport by rail is not just cheaper than road transport – it is also greener. Whether you measure circumference or weight, cargo transported by rail will emit less carbon dioxide and other pollutants. This advantage will increase incrementally with the expansion of European sustainable energy supply and increasing numbers of electrified rail carriages.
Outside of Denmark, a truck can carry up to 25 ton per load. In Denmark, that number is up to 37.5 ton per truck. In comparison, a freight carriage holds between 54 to 74 ton depending on the type of cargo. This means less trucks on the roads, if cargo volumes are large enough to take advantage of rail transport – cost effective and environmentally friendly.
A rolling warehouse
Time is money, but don’t necessarily think of quick solutions as better than slow. Instead, step back and look at the entire picture and total costs instead of each part of the supply chain individually. Storing goods in warehouses comes at a cost irrespective of you owning your own warehouses or using our warehouse solutions.
Look at transport time as a “rolling warehouse”. When the freight train arrives in Denmark, we have the equipment to unload and reload to trucks which have unsurpassed flexibility to transport the cargo the final kilometres to your company’s facilities rapidly and efficiently. You don’t even need to be able to access a rail track yourself to harvest the benefits of a freight train as part of your logistics solutions.
5 things to consider when discarding the thought of freight trains
Different products, companies and markets have different requirements. Even though the use of the railroad in logistics solutions has many advantages, not all companies can harvest equal advantages from cargo transport by freight train. For this reason, we advise you to consider:
The need for flexibility
Many companies overestimate the need for flexibility, and subsequently choose costly transport solutions for large parts of the supply chain. Often, highly flexible transport is only needed in the beginning and the end of the transport, such as by road with a skilled driver to handle loading and unloading. For large stretches of transport, it makes good sense to use the railway network for cargo transport.
At H. Daugaard, we have equipment for and access to flexible reloading between truck and freight car, which minimizes both time and cost of combining those two types of transport – and as a customer, you receive the familiar flexibility during delivery.
The need for speed and adjustment of cargo volumes
The greatest advantage of transport by rail network is when time is not the only success factor. Or in other words – a truck with two drivers driving directly in one stretch to southern Europe from Denmark will often arrive faster than goods sent by freight train to the same destination.
Even though many industries need speed and flexibility for part of their goods deliveries, this need is often covered by a combination of several transport types. Transporting 80% of average volumes to and from a business by rail and the remaining 20% by road with faster trucks can be cost effective. A solution such as this opens for options to relatively quickly scale up or down with market demands and fluctuations.
Distance
If tracks have not been lain for the entire route between sender and recipient of the cargo, reloading between rail and truck can put too large a strain on the total rail solution for short distances. If for example cargo is to be transported 26 kilometres from Kolding to Jels, it would not make sense to use the railroad to Vamdrup to reload to a truck for the remaining 12 kilometres. However, not many hundred kilometres are needed for the rail network to prove advantageous.
H. Daugaard offers rail solutions in Kolding and Vamdrup alike. Both locations can load efficiently to rail or truck, ensuring that you are provided with a fully flexible solution, which fits each individual delivery.
Environmental load
Climate changes, a politicised global agenda and an increased focus on consumers means that many companies invest large sums in initiatives meant to minimize climate impacts by industries. If climate is on the agenda in your company, a swap of transport to the rail network could be a low hanging fruit, which may only require a few habit changes. The gains, however, will be far greater than the investment needed to achieve those gains.
Finances
Finally, transport by freight train is often a more economical solution compared to e.g. transport by road. It is especially wise to be aware of the possibilities of reducing transport costs for the types of cargo that typically have marginal profits.
Shall we tailor a logistics solution to your company?
H. Daugaard is a market leader in rail transport, reloading as well as distribution of cargo such as steel, paper and building material.
We continuously develop our rail concept in close cooperation with our customers and partners, which is the reason why we can tailor the market’s most optimal European rail network logistics solutions.
If you are curious about the options of achieving synergy effects and advantages with a tailored logistics solution, we are ready to assist you. Contact us on salg@h-daugaard.dk or phone +45 79 38 12 44 to hear about improvement options specifically for you.
