What They Say
Caixin reports that shipping specialist, Maersk China, suggested that Chinese subsidies for rail transport from China to the EU are not sustainable. In 2020, China-Europe freight trains made a total of 12,400 trips, up 50% from the previous year. They shipped nearly 1.14 million standard containers, up 56% year-on-year, according to data (link in Chinese) from railway operator China State Railway Group Co. Ltd.
In the first quarter of this year, the total number of freight train trips rose 75% year-on-year to 3,398, and they shipped 322,000 containers, up 84% year-on-year, the National Development and Reform Commission said at a Monday briefing (link in Chinese).
What We Think
The recent problems in the Suez canal will have added to the pressure on other routes from China to Europe. I first wrote about this train line some six years ago. (Looking to the East at IFA) Shippers are currently quoting 18 days from anywhere in China to anywhere in Europe as the time for delivery via Poland.
There are things to be considered when shipping by train. I remember several decades ago a lesson learned about (CRT) monitors arriving by sea to Europe from Asia. Strangely, one country found that it had a much higher level of DOA and faults than other countries. Eventually (and it took time to work out) it was realised that the significant distance that the units went by rail to that country was the issue. Other countries were using road haulage. The additional vibration from rail transit were the problem. Better packaging in terms of vibration solved the issue. (BR)
