It’s not like anyone in the distribution business wants to think about any hypothetical situations. The pace of real changes in the marketplace, from ecommerce businesses to driver-less transport trucks, keeps us busy enough.
But a recent news story grabbed our imagine and got us daydreaming about the implications of its subject for 3PLs and distribution companies.
In a story released on March 25th, CNN reported that the head of Russian Railways, Vladimir Yakunin, proposed the construction of a superhighway running the entire width of Russia, from the border with Europe to the far eastern Chukotka region.
So what? According to Yakunin’s plan, the road would connect Russia – and Europe – to North America across the Bering Sea.
The implication is that, for the first time, North American distribution companies could ship their products door-to-door, using a single mode of transportation, to markets in Asia, Europe and even Africa.
If you forget that Yakunin’s plan offers no answers to the question of how vehicles would cross the 88 kilometres of the freezing, often turbulent water that lies between Russia and Alaska at their closest point; or that the nearest road on the American side is 836 kms away, the idea sparks the imagination.
But how practical and cost effective would it be?
While it’s impossible to make exact logistical, cost and delivery time comparisons between current distribution channels and the hypothetical highway, we thought it would be interesting to take a quick, unscientific look at how the two might compare.
Using the shipment of a single mid-sized car, from Toronto to London, UK, we found the following:
Current Shipping Methods
- Cost – including duties and taxes: approx. $3,000
- Time – from distribution centre to pick-up point: approx. 3 weeks
Russian Superhighway Ground Shipping
Based on current North American ground shipping rates, driving for 8 hours a day, 5 days a week, at an average speed of 80 km/hr.
- Cost – not including untold numbers of duties, taxes, etc.: $5,100
- Time – from distribution centre to pick-up point: just over 9 weeks
Conclusion: While this comparison is far from definitive, it’s clear that, if the intercontinental superhighway ever became a reality, it would probably not be a very practical option for ground shipments to Europe.
But China?…

CALL US



