China-Europe freight trains weekly commentary（Aug.1-Aug.7)

China-Europe freight train operation updates（Week 32）

In Week 32, the trains stood at the departure station in June and July were successively dispatched. Several scheduled trains in August departed on time, and a few were reported to be held off. According to the data, the loading time of Alashankou and Khorgos is basically the same with average delays of 3-4 days, and the longest delay is recorded to be less than 9 days. Although Lithuania's sanctions against Russia have triggered discussions again, the operation of China-Europe freight trains has not been affected. The handling at Kaliningrad costs about 1 day, which performs much better than that via Malaszewicze.

Recently, the supply of European-bound and Russian bound services has exceeded the demand, with sufficient spaces, and the spot freight rates continue to fall. The container leasing price is also cooling down, which fell again by a small margin, about 10% compared with June. Xiamen, Chongqing, and other places are reported to be short of containers. Since August 1, the scheduled ETD of China-Europe freight train (Guizhou) has been adjusted from every Friday to every Thursday. The goods shall be assembled at Dula logistics port at least 7 days before the departure, and relevant documents will be uploaded 4 days before ETD.

FeFeasibility study of China-Kyrgyzstan-Uzbekistan railway project kicks off: NDRC

At Kyrgyzstan's invitation, Chinese experts arrived in Kyrgyzsta on Auguest 2 and started their?research for the China-Kyrgyzstan-Uzbekistan railway, marking the start of the project's feasibility study, China's National Development and Reform Commission (NDRC)?said?on its official WeChat account.?

Since the beginning of this year, the China-Kyrgyzstan-Uzbekistan railway project has made positive progress thanks to the joint efforts of the three countries.?During a recent round of visits in Central Asian countries, Chinese State Councilor and Foreign Minister Wang Yi held talks with Kyrgyz Foreign Minister Jeenbek Kulubaev, and the two countries reached a consensus on jointly building a community with a shared future.?

The two sides believe that the China-Kyrgyzstan-Uzbekistan railway is a strategic project for regional connectivity, and?it is high time to?launch this important project,?according to the statement?released by the Foreign Ministry on its website.

Fears of another Kaliningrad transit crisis; Lithuanian banks pauses Russian payments

Lithuanian Railways resumed transportation of goods between mainland Russia and Kaliningrad last month, following negotiations?between Moscow?and the EU. Now, Lithuanian banks plan to stop processing all payments from Russia, the same applies to Kaliningrad transit payments, leading to fears of another crisis, reports Lithuanian National Broadcaster LRT.

?iauli??Bankas currently remains the only financial institution through which Russia can pay Lithuanian Railways for transporting goods to and from Kaliningrad. However, the bank recently announced it would stop processing these payments as of September.?Last week, the Russian envoy Sergei Ryabkov delivered a note to Lithuania’s Foreign Ministry，asking to clarify the reasons?until September 1st.

Shanxi launches first int'l freight train via China-Laos Railway

Shanxi Province launched its first international freight train that runs via the China-Laos Railway on July 30th, according to local railway authorities.?The freight train, loaded with cargo containers?loading?ceramics, paints and fertilizers, departed from central Shanxi for the Lao’s?capital Vientiane. The cross-border train is expected to arrive in Laos in seven days, according to China Railway Taiyuan Group Co., Ltd.

The?newly launched?international freight train in Shanxi is expected to upgrade and expand the logistics links between inland areas in north China and ASEAN countries. And it is expected to?play a positive role in deepening economic and trade exchanges and?promoting?international logistics.

China-Europe freight train services rise 11% y-o-y in July

China-Europe freight trains operates safely and efficiently in July, with an y-o-y?increase?of?11%, according to the China State Railway Group Co., Ltd. There were 1,517 China-Europe freight train trips recorded?last month, which?transported a cargo of 149,000 twenty-foot equivalent units (TEUs),?registering?a?growth?of 12%?from last year.?In the first seven months of the year, the number of China-Europe freight trains?reached 8,990,?grew by?3%?from last year. The?total volume of transported cargos rocketed to?869,000 TEUs, up?4 %.

Yiwu's commodities shipment normal though hit by virus flare-up

Merchants in Yiwu, the world’s biggest commodity wholesale market in?East China's Zhejiang Province, are doing what they can to ensure an undisrupted flow of goods, after the city reported dozens of COVID-19 cases this week. The China-Europe freight train service has remained normal.?The outbreak?took place?during the critical Christmas goods shipment season, during which merchants are busy shipping out finished orders that buyers placed for this year's Christmas holiday.

Zhao Libi,?a member of?the Yiwu Christmas Products Association, said that since?August?3, traffic had stopped, including transportation of goods from factories to?ports.?Merchants of Christmas goods are watching how things unravel. However,?with rich?experience in dealing with the virus and its disruptions,?they?are coping adeptly."??At the four railway depots in Zhejiang, there is plenty of cargos?and the trains are running normally. For the moment, I don't see any impact of the epidemic," said an industry insider.

First freight train from Anhui to Budapest launched

A freight train carrying 20 containers?with cargos?worth almost 10 million euros has left Hefei in?Anhui?for Budapest. It is the first?service?of its kind between the two cities. The trip?covers over 10 thousand kilometers?and?will take 16 to 18 days,?which is?much quicker than?ocean transport. The containers are full of products like solar panel components, electric machines and inverters made in China's Anhui province.

However, this is not?Anhui's first freight train to Europe. In 2014 Anhui launched this service and since then there have been 2,500 trips made to 85 cities in 18 countries. So far this year there have been a total of 500 freight train trips between?Anhui?and Europe.

Chengdu combined "China-Europe?freight?train" and "China-Vietnam?train"

On August?1, the first Nizhny Novgorod-Chengdu-Ho Chi Minh International train departed?from Chengdu. This cross-border train full of auto parts is destinated to?Ho Chi Minh, Vietnam.?It?is the first rail-sea?intermodal?train?which connect Russia?to the New Western Land-Sea Channel?through Siberia,?linking?the?rail network of?China-Europe?freight train?and China-Vietnam train.

It is reported that the train?has?arrive at Chengdu International Railway Port?a few days ago and?would?be transferred to Ho Chi Minh?via?Qinzhou?by rail and sea.?In the past, it took 60-90 days to arrive in Vietnam directly from St. Petersburg?by sea.?However, the test train is expected to take 30-40?days,?which can save more than half of the time.

China-Europe freight train(Wuhan) opened new service to Romania through “Middle Corridor”

The first cross?border?train?from?Wuhan?to?Romania?set off on August 2. The train loaded with glass tempering furnaces, textile supplies, machinery and equipment, daily necessities and other goods departed from Wujiashan Station of Wuhan.?It would leave?the country?via Khorgos, passing?through?the Caspian Sea and the Black Sea, and finally arrived in Constanta, Romania?in a?rail-sea combined?mode.?The successful operation of the Middle Corridor promises this?new?service?provided.?

Khorgos railway port?works great

On August 3, a?train loaded with 50 containers of daily necessities, cotton yarn, mechanical parts and other commodities left Khorgos railway port and headed for Berelast, Russia.?This is the 4,010th China-Europe?&?China-Central?Asia freight?train through Khorgos?in 2022,?breaking the record of?4,000?18 days earlier than?that of?last year.?In July, the monthly cargo volume?handled at Khorgos reached 1.016 million tons, an increase of 18.69%?YoY, and exceeded?1?million tons for the first time.