GEODIS commits long term air freight capacity to Asia-Europe corridor

Helping reduce the inevitable temptation to increase buffer stock, with its consequent costs

As part of its AirDirect service, which is an own controlled network (OCN), GEODIS has confirmed a two-way schedule of flights from China to Europe and back, through to early 2021, guaranteeing its customers a regular and reliable service.

GEODIS originally instigated its full aircraft charter arrangements on this route in March with ad hoc flights and introduced a weekly timetable in June to meet the urgent need for air cargo capacity which had diminished due to the effects of the pandemic. Now, with both freighter and passenger belly-hold space still in short supply, the logistics provider has announced a permanent schedule reaching into next year. Weekly direct flights will depart from Shanghai (PVG) every Monday and from Amsterdam (AMS) each Sunday to service what is expected to be a post-COVID resurgence in demand during what is traditionally a fourth quarter peak season.

The advent of the China-Europe-China service brings the company’s total investment in GEODIS’ OCN to over €70.0 million. More than 400 flights have been successfully completed across Asia, Europe, North and Latin America to date.

Among the customers requiring such a service are, in particular, a European auto manufacturer equipping its plant in China with sub-assembly parts.

In addition, Lenovo, a global leader in the manufacturing of personal computers, smartphones, workstations, computer servers and smart IoT devices, is one of GEODIS’ customers of its AirDirect Mexico service (Hong Kong/ Guadalajara) as well as its weekly direct flights from Shanghai-Amsterdam. GEODIS ensures the transportation of Lenovo’s products are safely and securely handled, helping Lenovo to deliver its components to factories and finished goods to customers in a timely manner.

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The regularity and reliability of this newly-established service, coupled with the visibility provided by the 3PL’s IRIS systems technology will help manufacturers and retailers rejuvenate their business as the global economy recovers post-COVID. GEODIS hope to help them prevent further supply chain disruption and reduce the inevitable temptation to increase buffer stock, with its consequent costs.

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