Let the train take the strain
July 29, 2024
Amid Red Sea delays, is rail freight a better option?
The Red Sea, a crucial shipping route, is currently facing severe disruptions due to geopolitical tensions, including Houthi drone attacks. These disruptions have led to significant delays, adding over ten days to the transit time for containers bound for European ports like Hamburg. As a result, the already lengthy sea journey of 30-40 days has become even longer and more uncertain, posing a serious challenge to global trade.
In contrast, rail freight from China to Europe offers a faster and more reliable alternative. Rail services can deliver containers in 10-20 days, providing a crucial advantage for high-value goods such as electronics and vehicles. Although rail transport costs are higher, at €5,440 to €6,350 ($6,000-$7,000) per container, the speed and reliability often justify the expense.
In July, News.CN reported that the China-Europe freight trains surpassed 10,000 trips in just 200 days this year, highlighting the reliability and efficiency of rail transport that offers a viable alternative to enhance trade efficiency, support sustainable development, and strengthen economic ties.
Due to its strategic location in Germany’s Ruhr region, Duisburg is an excellent hub for China-Europe freight trains. It offers easy access to major European markets and manufacturing centres. The city features one of the world’s largest inland ports, Duisport, which integrates rail, road, and river transport for efficient logistics operations.
This extensive connectivity ensures rapid distribution of goods throughout Europe, reinforcing Duisburg’s role as a central logistics hub. Additionally, Duisburg’s robust economic infrastructure supports high volumes of freight traffic, and significant investments from both German and Chinese governments have enhanced the China-Europe rail link, promoting streamlined customs processes and bilateral trade.
Inland Chinese cities like Xi’an and Chongqing have become critical logistics hubs, further strengthening the rail network’s role in global trade.
Categories : World Focus
