OEM cooperation has the potential to reduce empty rail miles, says Glovis

Ford returnable containers

Carmakers need to collaborate on shared rail wagon loads to reduce empty rail miles where feasible and technology provides the means to make the most of existing capacity according to speakers at last week’s Automotive Logistics and Supply Chain conference

As historically low dealer stocks need replenishing, and heavy SUVs and electric vehicles (EVs) take up more than their fair share of outbound transport capacity, carmakers and their logistics providers are looking at how that capacity can be maximised. Instead of investing in additional wagons, some are calling for the reduction of empty rail miles.

Frank Schnelle, director of the finished vehicle logistics business unit at Glovis Europe, suggested cooperation between OEMs as an important step at last week’s Automotive Logistics and Supply Chain Live conference: “We should first focus on the utilisation of existing [rail] capacity,” he said. 

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