China-Europe freight trains weekly commentary（Jul.11-Jul.17)

China-Europe freight train operation updates (Week 29)

In?week 29, the transit time of China-Europe freight train got longer, and the delay at ports caused widespread concern. According to the recent data, the transloading time of Mala is about 7 days, and that of Alashankou?and Horgos is about 5-7 days. Due to the congestion at the border, several trains were forced to stay waiting after the departures to alleviate the pressure at the port. The overall transit time for European-bound trains is about 30 days, and that for East-bound train is 15-20 days. Duisburg-Yiwu trains took a little longer; The overall transit time of Russian-bound trains is about 15-18 days. Chengdu, Chongqing, and Xi'an have less delay compared with other terminals.

According to industry insiders, the space on westbound trains was inadequate in July, and the freight rate rose sharply. According to some freight forwarders, the price rose by $2000-3000 for each unit. Previously, some cargoes to Russia were transferred to the sea-rail intermodal transport through Vladivostok, but the transshipment capacity of Vladivostok is limited. By August, the cargoes are likely to return to the China-Europe freight trains, and it is expected that the Russian-bounded rail service is bound to boom. This week, containers need to be booked in advance in Changsha and Chongqing and renting at inland terminals is not that easy. However, the container-leasing price is stable, and the volume is relatively sufficient.

Transit to?Kalingrad?allowed, said Lithuanian Prime Minister?

Surrounded by Lithuania and Poland,?the Kaliningrad?is?isolated from the rest of Russia.?Trains?and?trucks?for Kaliningrad?should?travel via Belarus and?Lithuania. Subject to EU sanctions, Lithuania?earlier?claimed a ban on freight?trains from Russia?and?expanded the restrictions from July 11, which?angered Moscow amid tensions.

After negotiations,?the EU?said that Russia can continue transporting certain?goods?to Kalingrad by rail?—?but not by road?—?as long as the goods don’t serve a military purpose. Lithuania will not try to reverse?EU’s?decision to allow certain sanctioned goods pass through its territory to Russia's Kaliningrad, Lithuanian Prime Minister Ingrida Simonyte?finally?said Thursday.

China and Malaysia?will?ramp up food?trade, and railway projects are under preparation

China is ready to import more palm oil, tropical fruits and other agricultural products from Malaysia, said Chinese?Foreign Affairs Minister?Wang Yi after attending a bilateral meeting between Malaysia and the People’s Republic of China in Kuala Lumpur.

Both countries will also leverage on the opportunities offered by the 10th Anniversary of the Establishment of China-Malaysia Qinzhou Industrial Park, to put in place a pilot zone for innovative economic and trade cooperation as well as a demonstration of?manufacturing?cooperation of the Belt and Road Initiative.

Wang said?the two sides?also discussed?the blueprints for?infrastructure?connectivity and will?double?efforts to?promote?the East Coast Rail Link (ECRL) project and the development of?regions along the route.?These two sides will stay in communication on the construction of the Singapore-Malaysia railway.

He said both countries also looked forward to the completion of the central line of the Pan-Asian railway link to achieve interconnected development and speed up?the?regional integration through the?network?of China-Laos-Thailand railways.

Freight volume in China?surged by?5.5% in first half?of 2022?

RailL freight delivered?“a dazzling report?”?from January to June, according to China National Railway, which reports that a total of 1.95 billion tonnes were carried?–?registering an increase of?5.5% on the year before.?The average daily loading of the national railway was 41,702?trains,?recorded a growth of?19.9% year on year, while?the?rail-sea?intermodal services carried 5.69 million TEU, up 31.1%.

The?rail-sea intermodal services?along?the Western Land-Sea corridor saw strong growth in the first?half?year?, carrying a total of 379,000 TEU, which was?an increase of?33.4%?compared with?the year before. The number of scheduled rail services has increased from nine to 12.?The corridor,?centered?in Chongqing,?provided?a connection?between?western China??and?ports in the Beibu Gulf in southern China, as well as links to Myanmar, Laos and Vietnam.

China National Railway is actively developing intermodal transport?by?rail, sea and inland water?to reduce carbon emissions, and initiates in this area to?explore?the potential of automated terminals.

China-Europe?Freight train?(Chongqing)'s 10,000th trip arrives in Germany

A freight train loaded with electronic products, mechanical parts and daily necessities, which departed from Chongqing on June 23, arrived in Duisburg, Germany on Monday.

This marked the 10,000th trip made by China-Europe freight trains operated by the China-Europe Railway Express (Chongqing).

Du Chunguo, the Chinese Consul General in Dusseldorf, Markus Teuber, commissioner for China’s?affairs of Duisburg, and Duisport’s?CEO Markus Bangen attended a welcome ceremony held in Duisburg Monday afternoon.

Du said that the annual trade volume?between the two countries?was less than 300 million U.S. dollars 50 years ago,?and?now it?only?takes?about?12 hours on average to accomplish?that volume.?

China-Europe?freight train (Cang Shi Ou) launched

On the morning of July 15, a "Cang Shi Ou" China-Europe freight train loaded with goods departed from Shijiazhuang international port and headed for Budapest, the capital of Hungary. This is the first China-Europe freight train jointly operated by Cangzhou and Shijiazhuang.

The train is jointly operated by SME?cooperation?zone of China-Central and Eastern Europe, Central Europe Logistics Park and Shijiazhuang international port.?With a total of 100 containers loaded with photovoltaic modules, generator modules and other export commodities, it is expected to arrive at Budapest in 18 days.

The first China-Europe Freight train "Mindu"?departed?in Fuzhou, Fujian Province

On the morning of July 15, the first China-Europe freight train "Mindu" from Fuzhou, Fujian, departed from Jiangyin in Fuzhou. It will leave the country through Alashankou, and will arrive at Belyi Rast in Moscow, Russia, 16 days later.

The train is loaded with 50 containers (100 TEUs) of baby supplies, weighing 455 tons. The whole journey is about 9900 kilometers. It will reach Moscow in 16 days, saving nearly 20 days compared with sea transport.

In the first half of the year, trains?pass?through?Manzhouli port increased by 30%?

Manzhouli Customs strongly?supports the operation of the China-Europe freight train to ensure smooth freight logistics and stable import and export trade this?year.

According to statistics, in the first half of 2022, there were 2,215 China-Europe trains?transloading from?Manzhouli?rail?port, an increase of 34.2% year-on-year.181,200 TEUs of containers were transported, an increase of 39.9%;.The total value of goods?transshipped here?was about 24.986 billion yuan,?an increase of 56.5%(?including?1,239 inbound trains with a value of approximately RMB 13.577 billion; 976 outbound trains with a value of approximately RMB 11.409 billion). It is recorded that the number of?operation lines, of?containers?and goods?transshipped?maintained a growth?trend in?Manzhouli.

China-Europe?freight?train?（Qisumu）?has expanded the its rail?service?to 12 foreign?terminals

Ulanqab, located in the north of China, is?a rail?hub?through it is?not a provincial capital city. China-Europe freight train（Qisumu）has expanded?its?rail?service?to?12 foreign cities including Tashkent, Almaty, Moscow and Duisburg.

The operator of China-Europe?freight train?(Qisumu)?has actively?developed new routes. In February 2021, a train equipped with car engines set off from Ulanqab, and arrived in Duisburg, Germany; In September 2021, a train carrying daily necessities also departed from Qisumu and arrived at Rezene, Latvia.

In the past year, a total of 168 trains have been?launched from Qisumu?, with a?cargoes?valued at?US$272 million,?with?a year-on-year increase of 33.5%.