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Eurasia Rail Freight China To Germany For Electronic Products
2021-11-30

In 2019, a German agent of  WCA family member found Loongle to negotiate Sino-German railway cooperation. They have a long-term customer who purchases electronic products from China. Basically, the purchasing factories are near Suzhou, Wuxi, and Hangzhou in the Yangtze River Delta, and the goods are received in Germany. People are closer to Duisburg. There are 30*40’HQ purchases in about a month, which is a relatively stable long-term project. Because electronic products cannot be damp, the shipping method was directly rejected by the customer. However, the cost of air transportation is too high, so the customer indicated that rail transportation was the best method of transportation, which can save freight costs and ensure the safety of cargo transportation. Meanwhile, the rail freight way only takes 16days for transit, which is half the transit time of sea freight way.

It coincided that Suzhou West Railway Station opened the Suzhou-Duisburg direct railway service in 2018, and the whole transit time only took 16 days. So immediately, we felt that this project had a greater opportunity and participated in the competition.

After the first round of quotations, the German agency informed us that our quote was higher than other agencies and was not competitive. After discussions, we found that the main reason is that the price of Suzhou Station is generally higher than that of other stations such as Zhengzhou, but Suzhou Station is closer to the loading address. If the cost of our rail freight rate is similar to that of other stations, then the German side has indicated that they would choose us for this project’s cooperation.

After receiving this information, we immediately communicated face-to-face with the Suzhou rail station and indicated that it is a long-term project. We hope that Suzhou rail station can carefully consider this point and give us a certain price reduction. With our unremitting efforts, the Suzhou rail station finally supported us and met the customer’s target price. At this point, the whole project is a matter of course, and the German side readily agreed to sign a long-term cooperation agreement with us to ship 6*40’HQ goods from Suzhou to Duisburg every week.

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