China’s Export Cargo Transportation Mode Selection and Cost Optimization

Abstract
This article explores how Chinese export companies can rationally select transportation modes in international trade based on cargo characteristics, destination, timeliness requirements, and cost factors, and proposes corresponding cost optimization strategies. By analyzing the characteristics of major transportation modes—sea, air, rail, and land—the article provides decision-making guidance for companies.

I. Comparison of Major Export Transportation Methods in China

1. Ocean Freight
   Features: Large volume, low cost, slow speed

Suitable for: Bulk cargo, non-urgent cargo, long-distance transport

Major Ports: Shanghai Port, Ningbo-Zhoushan Port, Shenzhen Port, Guangzhou Port, etc.

Cost Structure: Basic ocean freight + fuel surcharge + port charges + insurance premium

2. Air Freight
   Features: Fast speed, high cost, limited capacity

Suitable for: High-value goods, urgent goods, perishable goods

Major Airports: Beijing Capital Airport, Shanghai Pudong Airport, Guangzhou Baiyun Airport, etc.

Cost Structure: Air freight + fuel surcharge + security fee + ground handling fee

3. China-Europe Railway Express
   Features: Speed between ocean and air freight, moderate cost

Suitable for: Cargo bound for Europe, medium- to high-value goods with time-sensitive delivery requirements

Major Routes: Chongqing-Duisburg, Yiwu-Madrid, etc.

Cost Structure: Railway freight + loading and unloading fees + customs clearance fees

4. Land Transport (Road)
   Features: Highly flexible, suitable for short distances

Suitable for: Exports to neighboring countries (such as Southeast Asia and Central Asia)

Major ports: Horgos (Central Asia), Friendship Pass (Vietnam), etc.

Cost Structure: Road freight + transit fees + insurance

II. Key Factors in Selecting a Transport Mode
Cargo Characteristics: Volume, weight, value, perishability, and hazardousness

Time Requirements: Customer-required delivery time

Transportation Costs: Direct and indirect costs of different modes

Destination: Geographic location and infrastructure

Trade Terms: Division of liability under terms such as FOB and CIF

Policy Factors: Transport subsidies under the Belt and Road Initiative, etc.

III. Cost Optimization Strategies

1. Intermodal Transport Optimization
   Combining ocean freight with rail/road transport

Exploiting the price difference between China-Europe freight trains and ocean freight

Optimizing transshipment node selection to reduce overall costs

2. Leveraging Economies of Scale
   Consolidating shipments to obtain volume discounts

Joining a freight alliance to share transportation resources

Using Less-than-Container Load (LCL) or carpooling to reduce costs for small shipments

3. Information Management
   Application of a Transportation Management System (TMS) to Optimize Routes

Real-Time Cargo Tracking to Reduce Delay Losses

Data Analysis to Predict Freight Rate Fluctuations

4. Seizing Policy Benefits
   Leveraging Free Trade Zone Policies to Reduce Customs Clearance Costs

Applying for Belt and Road-Related Transportation Subsidies

Paying Attention to Seasonal Freight Rate Fluctuations to Select the Optimal Shipping Time

5. Supply Chain Collaboration
   Negotiating More Favorable Trade Terms with Customers

Establishing Long-Term, Stable Carrier Partnerships

Optimizing Packaging to Reduce Volume and Weight

IV. Case Study
For example, an electronics exporter switched from air freight to China-Europe Railway Express (CREX) on some European routes, reducing transportation time by two-thirds compared to sea freight and costs by 60% compared to air freight, resulting in annual logistics savings of approximately US$1.2 million.

V. Conclusion
Chinese exporters should establish scientific transportation decision-making models that comprehensively consider cargo characteristics, customer needs, and cost factors, and flexibly utilize multiple transportation modes and optimization strategies. With the deepening of the Belt and Road Initiative and the improvement of domestic logistics infrastructure, emerging transportation modes such as the CREX will provide exporters with more opportunities for cost optimization.

Companies should continue to pay attention to international logistics market trends, use digital tools to improve transportation management efficiency, and build a more competitive international supply chain system.