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[Text/Ruan Jiaqi, Observer Network]

On August 12 local time, Sourcing Journal, a supply chain website owned by the well-known American media company PMC, published an article reporting that the Red Sea conflict has caused a surge in shipping costs for most of this year. The additional costs and transportation delays caused are prompting more and more European shippers to turn to rail transportation such as the China-Europe Express to ensure that they can receive products imported from major European trading partners such as China.

According to data released by China State Railway Group Co., Ltd. on the 11th, from January to July this year, a total of 11,403 China-Europe trains were launched, shipping 1.226 million TEUs of goods, up 12% and 11% year-on-year respectively. Among them, 1,776 trains were launched in July, shipping 185,000 TEUs of goods, with more than 1,700 trains launched in a single month for three consecutive months.

On August 6, in Lianyungang, Jiangsu, at the China-Kazakhstan (Lianyungang) Logistics Cooperation Base, a China-Europe (Central Asia) train loaded with containers was ready to depart. Visual China

Sourcing Journal cited a report recently released by international logistics giant DHL, saying that due to strong demand, rail transportation costs from China to Europe continue to rise. Data from June showed that the cost of transporting a 40-foot container from Zhengzhou to Paris by rail was $9,200, $7,000 to Hamburg, and $9,400 to Milan.

DHL also said in the report that it strongly recommends shippers to forecast demand well in advance of the entire peak shipping season, especially ahead of China’s Golden Week holiday.

The report pointed out that considering that rail transport is faster than sea transport, it is not surprising that more and more European shippers choose to use this mode of transportation.

International freight forwarding company Dimerco estimates that rail transport time from Xi'an in central China to Europe ranges from 13 to 25 days, depending on the destination, compared with 35 to 50 days by sea.

Dimerco also said that although rail freight is usually 15% to 25% more expensive than ocean freight, these differences can be offset by avoiding ocean freight surcharges and penalties. And faster shipping times can reduce inventory and make it easier to win and retain customers.

DHL's new report mentioned that the main rail freight channel at the China-Kazakhstan border port is still congested due to large freight volumes and customs inspections, and departure delays in Xi'an and Chengdu have improved. Although transportation time has increased, rail is still the fastest solution for shipping containers from China to Europe.

Sourcing Journal also pointed out that, with the efficiency of train operation receiving attention, the growth of freight business of China-Europe Express trains has benefited from the promotion of service upgrades, such as the application of full-route timetables. The arrival and departure times and line train numbers of each section are fixed, and the trains run according to the schedule throughout the journey, which effectively controls the operation time of each link of China-Europe Express trains, improves transportation timeliness, and further attracts shippers who are unwilling to detour to farther waters due to the Red Sea crisis.

According to data from the China Railway Corporation, since the implementation of the third batch of full-route timetables in mid-June, 17 China-Europe express trains have been running steadily per week, including routes from Xi'an, Chengdu, Chongqing, Yiwu, Wuhan, Guangzhou to Duisburg, Germany, and Lodz, Poland. They are operated in a passenger car-like manner, and transportation timeliness is reliably guaranteed, which is favored by customers.

On July 1, at the Jingping Integrated Logistics Hub in Pinggu District, Beijing, the China-Europe Express (Beijing-Moscow) departed from Beijing Pinggu Local Railway Mafang Station again. The train was loaded with 55 containers of home appliances, clothing, building materials and other goods. Visual China

The Red Sea crisis is not the only reason for the increasing popularity of rail transport. China has also been rapidly developing rail freight services. After the outbreak of the Russian-Ukrainian conflict, Chinese railway operators have opened up more new "middle corridor" routes through Russia's southern neighbors such as Kazakhstan.

In June this year, the China-Europe Express opened its first high-quality train from Shanghai to Neuss, Germany. The train departs from Shanghai every Saturday at a fixed schedule. The regular operation provides a new logistics channel option for high value-added and time-sensitive goods entering and leaving China and Europe. This route only takes 20 days. In addition, starting from July 1, the cross-Caspian China-Europe Express from Xi'an to Baku, Azerbaijan, will be operated regularly at a frequency of "one train per day", and the entire journey only takes about 12 days.

According to a report by China Business News, the volume and price of China-Europe trains have both increased since May, with prices on major platforms rising by 10% to 20%. Since then, China-Europe trains have maintained a high volume, and August's shipping plans and booking prices have continued to rise overall.

Tang Tingting, assistant to the general manager of Sichuan New Silk Road Multimodal Transport Co., Ltd., said that despite the four-month consecutive increase in freight rates, Europe's transportation demand is still relatively strong, and October will still be the peak season for foreign trade transportation, so the space on major platforms may still be relatively tight.

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