High cross-border logistics costs between China and Europe pose a challenge to many businesses. Through systematic supply chain optimization, companies can significantly reduce logistics expenses while improving operational efficiency. The following are eight key strategies for reducing cross-border logistics costs between China and Europe:
- Optimizing the combination of transport modes
Establishing a multimodal transport system
Sea + Rail: Long-distance sea transport combined with the final leg of the China-Europe Express
Air + Rail: High-value goods are first airlifted to Central and Eastern Europe, then distributed by rail
Case study: An electronics company reduced costs by 25% by adopting a “sea to Piraeus Port, Greece” and “rail to Central Europe” strategy.
Dynamic transport mode selection model
Establishing a cost-time matrix (see table below)
Matching the optimal transport solution based on product characteristics
Product type High timeliness requirement Medium timeliness requirement Low timeliness requirement
High value (>€100/kg) Air freight Rail + air freight Rail
Medium value (€20-100/kg) Rail Sea freight + rail Sea freight
Low value (<€20/kg) Sea freight + rail Sea freight Ocean Freight
II. Warehousing Network Restructuring
Strategic Overseas Warehouse Deployment
Eastern European Warehouses: Warehouses in Hungary and Poland cover 80% of the European market
Central European Warehouses: Warehouses in Germany are suitable for fast delivery of high-value goods
Southern European Warehouses: Warehouses in Spain and Italy optimize Southern European delivery
Inventory Optimization Technology
Implementing a demand forecasting algorithm to reduce safety stock by 15-30%
Adopting a VMI (Vendor Managed Inventory) model to reduce capital tied up
III. Improving Customs Clearance Efficiency
Compliance Building
Obtaining AEO certification reduces customs clearance time by over 50%
Establishing a Product HS Code database ensures accurate declarations
Intelligent customs clearance system
Automated customs declaration software reduces manual errors
Electronic document transmission enables expedited customs clearance via the “Guantietong” system
IV. Packaging and Loading Optimization
Standardized packaging
Using EU standard pallets (1200×800mm)
Increased container load rate to over 92%
Lightweighting technology
Using new materials such as honeycomb paperboard to reduce weight by 15-20%
Optimized packaging design reduces volume by 10-25%
V. Digital Supply Chain Development
Logistics visualization system
Enables real-time tracking throughout the entire transportation process
Automatic warning and response to abnormal situations
Intelligent scheduling platform
Dynamically optimizes transportation routes
Automatically matches the best carrier
VI. Supplier Collaboration
Centralized procurement strategy
Integrate volumes from multiple suppliers to achieve scale benefits
Case study: A company consolidated volumes from five suppliers, reducing ocean freight costs by 18%
Just-in-time (JIT) delivery
Establish a collaborative planning system with suppliers
Reducing Inventory turnover days: 30-45 days
VII. Tax Optimization
Utilize the Free Trade Agreement
Fully utilize the benefits of the China-EU Investment Agreement
Rational planning of certificates of origin
EU VAT optimization
Register for the EU OSS system to simplify filings
Rational utilization of the deferred tax mechanism
VIII. Continuous Improvement Mechanism
KPI Monitoring System
Establish cost/timeliness/reliability metrics
Monthly analysis and continuous optimization
Benchmarking
Regularly compare against industry best practices
Participate in logistics supplier innovation projects
Recommended Implementation Path
Short-term (0-3 months)
Transportation method diagnosis and optimization
Collaborative negotiation with key suppliers
Mid-term (3-12 months)
Overseas warehouse network development
Digital system deployment
Long-term (1-3 years)
Full supply chain intelligence
Build a sustainable logistics system
By systematically implementing the above strategies, companies can reduce cross-border logistics costs between China and Europe by 20-35% and shorten average delivery times by 30-45%. Based on their business characteristics, companies are advised to prioritize optimizing transportation methods and restructuring their warehousing networks, gradually progressing to comprehensive supply chain optimization.