First GMS Road Shipment Launches from China’s Greater Bay Area, Slashing Cross-Border Trade Costs

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The first international overland shipment under the Greater Mekong Subregion framework has recently left China’s Guangdong-Hong Kong-Macao Greater Bay Area. By removing the need to switch vehicles during transit, this agreement greatly shortens transit times and lowers transportation costs.

This new land route to Southeast Asia reduces transit time by over 30% and decreases logistics expenses by around 15%, according to the Shenzhen Qianhai Comprehensive Bonded Zone on its WeChat account, citing the participating companies.

The core of this system is the use of the Agreement on Facilitating Cross-border Transport of Goods and People under the GMS framework, established by the Asian Development Bank in 1992. It involves six countries and regions within the Lancang-Mekong River Basin: Cambodia, Laos, Myanmar, Thailand, Vietnam, and China.

At the start point, goods are sealed in containers and remain sealed until reaching their final destination, eliminating the need to transfer trucks during transit. This effectively addresses long-standing issues associated with traditional multimodal transport, such as repeated loading and unloading at border crossings, lengthy and labor-intensive procedures, and increased damage risk.

“This initial shipment included high-value electronic components. We managed to cut transportation time by over 30% and reduced logistics costs by approximately 15%,” explained Sun Jialin, general manager of Shenzhen Qianhai Yufei Warehousing, a company specializing in supply chain management for electronic products where timing and security are critical.

“Since there’s no need to transfer vehicles, the safety of precision electronics is significantly improved. It also boosts capital turnover, giving us more confidence to expand into Southeast Asian markets,” Sun added.

Businesses adopting this new ‘bonded goods + GMS transportation’ model can handle export processes for Less than Container Load shipments—where a shipment doesn’t fill an entire container—and can complete customs clearance in advance within the Qianhai Comprehensive Bonded Zone. They also benefit from tax rebates upon entry into the zone. Goods can then be shipped directly overseas via GMS trucks, easing cash flow issues and enhancing supply chain competitiveness and flexibility.