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Điều khoản Logistics What Are the Differences? North American Land Bridge vs Asian Land Bridge

Ngày đăng kýMAR 31, 2024

What Are the Differences? North American Land Bridge vs Asian Land Bridge
What Is Intermodal Transportation?
Intermodal transportation is a form of transportation that uses two or more different modes of transportation under one contract to move cargo to its destination. In addition to ships and railroads, trucks, airplanes, and even pipelines that primarily transport gas can all be considered intermodal transportation. At its core, intermodal transportation is about moving cargo to its destination using two or more different modes of transportation.

Definition and Characteristics of Sea & Air Intermodal Transportation
Sea & Air Multimodal Transport Illustration
First of all, Sea & Air intermodal transportation can significantly reduce the number of delivery days compared to sea transportation, cut down the cost of transportation compared to air transportation, and cut down the overall logistics cost by reducing inventory investment, warehousing costs, and packaging costs compared to all-water services.

An example of Sea & Air intermodal transportation is Dubai, which has gained attention as an alternative route to logistics risks caused by the Red Sea crisis. Dubai Sea & Air Refowarding service uses sea transportation from the origin to Dubai and air transportation from Dubai to the final destination. As of January 24, a 40FT container from China to Eastern Europe costs between USD 4,800 and 5,300, and it takes about 35 days in L/T if the container goes through the Red Sea. However, an additional 18 to 20 days is needed if it detours around the Cape of Good Hope.

Using Dubai Sea & Air Reforwarding service, it will take about 20 days from China to Dubai Jebel Ali Port, 1-2 days to unload and prepare the ocean container at Jebel Ali, and 1 day to connect from Dubai Airport to major European destinations, making the total L/T around 23 days. From a cost perspective, it is expected to be about 2.5 to 3.5 times more expensive than sea freight from China to Dubai, handling costs within Dubai, and finally air freight from Dubai to the final destination, compared to sea freight via the Red Sea. However, with Dubai-Jebel Ali Port being delay-free and Dubai Airport having good air capacity to Europe and major African destinations, Dubai Reforwarding has become a viable alternative for urgent shipments that need to arrive at the destination within a specific L/T.

Definition and Characteristics of Sea & Land Intermodal Transportation
Another common type of international intermodal transportation is Sea & Land intermodal transportation. This is a type of intermodal transportation that was developed to save time and money by using land as a bridge or overpass for some transportation sections of the route, which is mainly based on ocean transportation. The main purpose of adopting land bridge transportation is to shorten the overall transportation time and reduce transportation costs. From the perspective of carriers, it is easier to pursue economies of scale by concentrating cargo in a few ports having good access to inland transportation networks.
an image of a train
Asian land bridge and North American land bridge are the two most common land bridge methods, with each having the following characteristics:

Asian Land Bridge (ALB)
This method is used to transport cargo from the Far East Asian region (Korea, China, Japan, etc.) to Europe. A typical example is the Siberia Land Bridge (SLB), which transports cargo from the Far East Asia region to the Russian port of Vostochny via sea transportation, and then to Europe via the Trans-Siberian Railway (TSR). Since it takes a lot of time and money to transport cargo to Europe by sea alone, land bridges can be used to reduce transportation time and costs.

North American Land Bridge (NALB)
This method is used to transport cargo from the Far East Asia region to North America.
An example is the Canadian Land Bridge, which transports cargo from the Far East Asia region to the Port of Vancouver in Canada via sea transportation, and then uses the Canadian National Railway to transport it to North America or Europe.
Due to its large area and complex transportation system, it takes a lot of time and money to transport cargo in North America, so the land bridge method can reduce transportation time and cost and ensure reliable transportation.
Land bridges play an important role in intercontinental cargo transportation and have the advantage of reducing transportation time and cost and enabling reliable transportation. However, because the transportation distance is long and the overall process is complex, it is necessary to choose the appropriate transportation method according to the type and characteristics of the cargo.
Definition : North American Land Bridge
North American Land Bridge is an intermodal transportation route that combines rail and sea transportation across the North American continent, transporting goods by sea from Far East Asia to the U.S. west coast., then by rail through the U.S. inland, and then by sea from the U.S. east coast to European ports. The routes include American Land Bridge (ALB), Mini Land Bridge (MLB), Interior Point Intermodal (IPI), and Reverse Interior Point Intermodal (RIPI). Combining sea and rail transportation can reduce transportation time and costs. As these land bridges offer access to the North America inland regions, it is possible to ship cargo to a wide range of locations.
Types of Intermodal Transportation Routes : North American Land Bridge
ALB(American Land Bridge)
1) American Land Bridge (ALB)
American Land Bridge (ALB) is a route developed by a company called Sea Train in 1972. The ALB is an intermodal transportation method that uses sea transportation from Far East Asia to the West Coast of the U.S., followed by rail transportation across the continental U.S., and then sea transportation from the continental U.S. to ports in Europe. Specifically, it is a transportation route on the American continent on the other side of the Siberian continent, consisting of sea transportation from a Far East port to a U.S. Pacific coast port (Los Angeles or Seattle), and from there, land transportation by transcontinental railroad to a port on the eastern U.S. Atlantic coast (New York, Baltimore, Miami, Philadelphia, etc.), and then sea transportation by ship to Europe. The freight rate and transportation time are significantly reduced compared to the existing all-water services and Trans-Siberian Railway. (Korea to the Far East west coast: 11-12 days, 1 day of transshipment on the U.S. west coast., 6-7 days of rail transportation to the U.S. east coast, 2 days of transshipment on the east coast, 8-11 days of sea transportation to Europe, and a total of 19,800 kilometers in 29-33 days) The east-west distance of the continental U.S. is a long distance with a time difference of three hours. When this continental U.S. acts as a bridge between the Pacific and Atlantic oceans, it is called the Land Bridge. The concept of continental U.S. acting as a land bridge in the transportation system between the Far East and Europe is known as the American Land Bridge. This ALB service, which is used by American President Lines (APL) and Sea-Land in the U.S. to transport U.S. military supplies, is less competitive than the TSR due to the high cost of inland North American transportation between Los Angeles and New York, so it has not been actively used yet. The transit time from Japan to major European cities via the North American continent is about 35 to 40 days.

- Development: The route was developed by Sea Train Company in 1972.
- Length: Approximately 18,000 kilometers
- Lead time: 30-40 days
- Location: It is a route where goods are transported from Far East Asia to the U.S. west coast by sea, then through the U.S. inland by rail, then from the U.S. east coast to European ports by sea.
- History: It was the first transcontinental intermodal route, which was initially used on the North America-Europe routes and later on the North America-Asia routes.
MLB(Mini Land Bridge)
2) Mini Land Bridge (MLB)
The Mini Land Bridge (MLB) is a route where a ship from South Korea reaches the west coast of the U.S., transfers goods via land transportation such as trains or trucks, and then across the continental U.S. to the U.S. west coast. For example, containerized cargo originating in Busan is transferred to Long Beach, LA on the U.S. west coast and then reach the Port of New York on the U.S. east coast vis rail transportation. Most of the cargo on this route is transferred back to ships at the Port of New York and often travels across the Atlantic Ocean to Europe. This route was developed as an alternative when the Suez Canal, once a vital gateway for shipping to Europe, was closed due to strikes and political reasons, but is not currently heavily used after the Suez Canal resumed operation. Using the MLB, goods can be transported from the Far East to U.S. west coast ports and then to the inland regions near the Atlantic Coast or Gulf Coast via rail or rail-road transportation, which can reduce transit time compared to all-water service through the Panama Canal. The MLB transportation route is shorter than the ALB because the cargo is transported by ship from the Far East to the U.S. west coast and then by rail to the U.S. east coast (NY, Baltimore, Charleston, etc.) or the Gulf-Coast (New Orleans, etc.). Therefore, it is called the Mini Land Bridge (MLB) as a type of intermodal transportation. The rapid development of MLB service is due to the increasing trade volume of emerging industrialized countries in Asia. There are some cargoes that are more advantageous to be transported by all-water service in terms of freight rate and transportation period. The route from South Korea involves sea transportation to the U.S. west coast, where it is transshipped to railroads for intermodal transportation to the U.S. east coast or the Gulf of Mexico. In this process, a through bill of lading (B/L) is issued at the place of final delivery.

- Development: The route was developed by shipping companies in 1981.
- Length: Approximately 12,000 kilometers
- Lead Time: Approximately 20-30 days
- Location: It is a route where goods are transported from the Far East to U.S. West Coast ports by sea and from there to U.S. East Coast ports by rail.
- History: It has been used on the North America-Europe routes since the mid-1980s.
IPI(Interior Point Intermodal)
3) Interior Point Intermodal (IPI)
Interior Point Intermodal (IPI) is a route where a ship from South Korea reaches the U.S. west coast, transports goods by train or truck, and then uses ground transportation to move the goods to a designated point in the continental U.S. While MLB is a route that moves goods to ports on the west coast, IPI only moves goods to the U.S. inland, not the west coast. For example, when the containerized cargo from Busan arrives at the port of Los Angeles on the west coast, it is transferred to a land transportation vehicle and is then transported to a factory located in Alabama. This route is mainly used to export goods to Korean factories located in the U.S. inland or to importers in the U.S. Currently, various shipping companies such as Maersk, MSC, and HMM offer this service. Using the IPI, goods are transported by sea from the Far East to the U.S. west coast, and are moved by rail from the west coast to inland cities east of the Rocky Mountains, and finally by road from the railway hubs to the shipper's doorstep. It differs from MLB in that it only goes through one port in the U.S. and the destination is located inland. IPI is also known as Micro Bridge Service (MBS). The carrier is responsible for paying a through freight and issuing a through bill of lading, and provides transportation services from major transportation hubs to the destination within 2-3 days. The cargo is transported by sea from Korea to a port on the U.S. west coast, transshipped by rail, and then transported by rail to major cities in the U.S., and the delivery point in major cities is called IPI Point. In other words, the IPI is a service that provides consistent transportation from the Far East to major cities in the continental U.S. via the west or east coast of the U.S. While MLB provides transportation services to the U.S. East Coast and Gulf Coast ports, the IPI is a system that provides services to major industrial areas in the eastern and midwestern U.S., which is shorter in distance. Since the IPI covers vast region, its services are divided into IPI Ⅰ, Ⅱ, Ⅲ, East Coast (All Water), and East Coast & Gulf Port (MLB) by the Maritime Alliance.

- Development: It was developed the late 1980s.
- Length: Approximately 8,000 kilometers
- Lead time: About 15-25 days
- Location: It is a route where goods are transported from the Far East to the U.S. west coast by sea, and then transshipped and moved to major U.S. cities by rail.
- History: It has been used on the North America-Europe routes since the late 1980s.
RIPI(Revised Interior Point Intermodal)
4) Reverse Interior Point Intermodal (RIPI)
Reverse Interior Point Intermodal (RIPI) is an intermodal transportation route initiated by shipping lines (US Lines and Maersk) that provided full ocean transportation services to the U.S. east coast in response to the IPI service. Unlike the IPI, it is a intermodal service of moving goods from the Far East to ports on the U.S. Atlantic Coast or Gulf Coast by sea via the Panama Canal, and then to inland areas by rail and truck. In other words, the cargo is transported from East Asia-Panama Canal-U.S. / Gulf Coast-Inland shippers. The characteristic of Reverse IPI is that the inland U.S. becomes both the origin and destination of the shipment, and the cargo goes through the Panama Canal, which is more favorable than the IPI in terms of transportation time and costs.

- Development: It was developed in the 2000s by US Lines and Maersk.
- Length: Approximately 8,000 kilometers
- Lead time: 7-10 days
- Location: Since the service was developed to overcome the shortcomings of the IPI, it can transport goods to the U.S. inland.
- History: It has been used on North America-Europe routes since the 2000s.
Definition : Asian Land Bridge
Asian land bridge is an intermodal transportation route that combines rail and sea transportation across the Asian continent, transporting goods from Asian countries such as Korea, Japan, and China to Europe. There are routes such as the Trans-Siberian Railway (TSR), Trans-Chinese Railway (TCR), Trans-Manchurian Railway (TMR), and Trans-Mongolian Railway (TMGR), which utilize the Siberian Railway. Asian land bridge is characterized by combining sea and rail transportation to reduce transportation time and costs, and plays a major role in international trade by connecting Asian and European regions. However, the different modes of transportation may increase the risks that may occur during the transportation process, so it is necessary to review and prepare properly before transportation begins.
Types of Intermodal Transportation Routes : Asian Land Bridge
Illustration of the Asian Land Bridge
1) Trans-Siberian Railway (TSR)
Trans-Siberian Railway (TSR) is a type of intermodal transportation that uses Siberian railways to connect East Asia, including Korea, Japan, and Southeast Asia, with continental Europe. TSR transportation began in 1971, and Korea has been using TSR services since 1973. When transporting containers to Europe using the TSR service, containers are transported by sea from a port in the Far East port to a port in Russian (Nihotka or Vostochny), then transported by road to a port on the Baltic Sea coast through the Trans-Siberian Railway. From there, the containers are transported by sea to a port in Europe, or by rail via the Trans-Siberian Railway to a border station with the Middle East and Europe, and finally by truck or rail to the Middle East and Europe. The longest section of TSR intermodal transportation is by rail, which is why it is named Trans-Siberian Railway (TSR) Service. The official name of intermodal transportation by container is Trans-Siberian Container Service (TSCS). South Korea’s export containers have been transported to Europe using the TSR Service since 1973. The intermodal transportation bond used by TSCS adopts the Network Liability System, which states that in the event of loss or damage to cargo during transportation, the carrier is liable under the laws and regulations applicable to the section of transportation where the damage occurred.

- Development: Construction began in 1916 during the Russian Empire and was completed in 1916.
- Length: With a total length of 9,288 kilometers, it is the longest railroad in the world.
- Lead Time: Approximately 30-40 days
- Location: It connects Moscow and Vladivostok, Russia, and serves as a link between Europe and Asia.
- History: It was built during the Russian Empire and completed in 1916, and was also used for military purposes during the Cold War.
TSR(Trans Siberian Railway)
2) Trans-Chinese Railway (TCR)
Trans-China Railway (TCR) is an international railroad line connecting Asia and Europe. It runs from Renyun River in China to Druzhba in Kazakhstan, with a total length of about 4,212 kilometers, passing through China, Kazakhstan, Russia, Belarus, Poland, Germany, and other countries. Specifically, the cargo is transported from the Far East to Lianyungang Port, and then via the Trans-China Railway and the former Soviet Union Railway to Rotterdam in Europe. The TCR is primarily used for freight transportation and is suitable for container transportation. China uses the TCR to promote its economic development and increase the efficiency of international transportation. The TCR is connected to other international rail lines such as the Trans-Siberian Railway (TSR) and the Trans-Manchurian Railway (TMR), providing multiple routes for international transportation.

- Development: Construction began in 1979 by the Chinese government and was completed in 2004.
- Length: The total length is about 4,212 kilometers.
- Lead time: About 20-30 days
- Location: It connects Beijing, China, with Almaty, Kazakhstan, and serves as a link between China and Central Asia.
- History: It was built by the Chinese government and completed in 2004, and its importance has grown with China's economic development.
TCR(Trans Chinese Railway)
3) Trans-Manchurian Railway (TMR)
Trans-Manchurian Railway (TMR) is an international railroad line that crosses the Manchurian region of China and connects to the Trans-Siberian Railway in Russia. It runs from Harbin, China to Vladivostok, Russia, with a total length of about 1,400 kilometers, passing through China, Russia, and Mongolia. The TMR is mainly used for freight transportation and is suitable for container transportation. It plays a major role in the economic development of China and Russia and in increasing the efficiency of international transportation, and is connected to other international rail lines such as the TCR and TSR, providing multiple routes for international transportation.

- Development: Construction began in 1984 and was completed in 1992.
- Length: The total length is about 1,400 kilometers.
- Lead time: About 20-30 days
- Location: The railroad crosses the Manchurian region of China, connecting Harbin, China, with Vladivostok, Russia.
- History: It was built to strengthen economic cooperation between China and Russia, and now plays an important role in freight transportation of China and Russia.

4) Trans-Mongolian Railway (TMGR)
Trans-Mongolian Railway (TMGR) is an international rail line that connects to the Trans-China Railway (TCR) and runs from Beijing, China, across Mongolia to connect to the Trans-Siberian Railway (TSR) in Russia. The total length is 7,753 kilometers, and the track gauge (the spacing between the two railroads) is based on Mongolian broad gauge (1,520 mm, which is wider than standard gauge). It runs from Tianjin, China, through Ulaanbaatar, Mongolia, and Ulan-Ude, Russia, where it connects with the Trans-Siberian Railway. It is mainly used for freight transportation and is suitable for container transportation. It plays a vital role in the economic development of China, Mongolia, and Russia and in improving the efficiency of international transportation, and is connected to the TCR and TSR, providing various routes for international transportation.

- Development: Construction began in 1956 after the former Soviet Union and Mongolia signed an agreement, and was completed in 1961.
- Length: The total length is 7,753 kilometers.
- Lead Time: Approximately 20-30 days
- Location: The railroad crosses Mongolia, connecting Beijing, China with Ulaanbaatar, Russia.
- History: It was built to promote Mongolia's economic development and international exchange, and now plays an important role in freight transportation between China, Russia, and Mongolia.
Advantages and Disadvantages : North American Land Bridge vs Asian Land Bridge
Advantages
While shipping cargo from South Korea to Europe using ocean transportation takes about 30 days or more, it takes 20-30 days using North American land bridges, and 15-20 days using Asian land bridges. Compared to ocean transportation, the transportation time is shorter.
In addition, the railroad infrastructure is well established, reducing transportation costs compared to ocean transportation. It is possible to transport not only containerized cargo, but also resources such as coal and oil.
Land bridges are also safe because they are not affected by weather and climate, which are the most important factors in transportation. There is less risk of damage to the cargo compared to ocean transportation.

Disadvantages
The lack of rail infrastructure in some areas can make it difficult to transport cargo, and rail service can be delayed in some areas, resulting in longer-than-expected transit times.
In addition, volume and weight restrictions on cargo can affect transportation, and customs clearance can be complicated as the cargo transits through multiple countries, adding additional time and cost.
However, despite these disadvantages, land bridges have many advantages over ocean transportation and are actively used in many countries.
North American Land Bridge vs Asian Land Bridge Q&A
Q: What made intermodal transportation possible by unitizing freight volume? A: Container
Containers have played an integral role in making intermodal transportation possible. Intermodal transportation is a process that inevitably requires the transshipment of cargo during transportation, which creates risks such as damage or loss of cargo. In the past, loading and unloading cargo was highly labor-intensive task because cargo was not unitized, which increased labor costs. The advent of containers has dramatically reduced these risks and inconveniences and made intermodal transportation possible. Containers have become ubiquitous around us, but they were actually a huge innovation in logistics. The advent of containers allowed cargo to be unitized, which allowed for quick and efficient transshipment and stability of cargo during transportation. In addition, with the widespread use of containers, specialized mechanical equipment such as cranes have been used for loading and unloading cargo, making the traditional loading and unloading process less labor-intensive, which has led to a significant reduction in labor costs.
Q: Which land bridges are garnering attention due to the recent Red Sea crisis? A: IPI, TSR, and TCR
Recent events in the Red Sea have paralyzed traditional shipping routes through the Red Sea, which led to increased attention on IPI, TSR, and TCR as alternative routes.
Q: What are the differences between ALB and NALB? A: Region, transportation item, and transportation route
- Region: Asian land bridges are rail routes centering on Asia, while North American land bridges are rail routes centering on in North America.
- Transportation item: The ALB primarily transports containerized cargo, whereas the NALB primarily transports resources such as coal and oil.
- Transportation route: The ALB travels through China, Mongolia, Russia, and other countries, whereas the NALB travels through Canada, the U.S., and other countries.