China-Europe freight trains weekly commentary（Dec.26-Jan.1)

China-Europe freight train operation updates (Week 1，2023)

At the beginning of the new year, China-Europe Express?train started to run steadily and smoothly.

Looking back to 2022, the volatile global situation and sluggish economic recovery did not weaken the operation of the China-Europe freight train and the import and export freight volume has increased against the trend. The number of inbound and outbound charter trains from the "East", "China" and "West" channels has continuously broken new historical records. According to the statistics, the number of China-Europe (Central Asia) trains passing through Alashankou in the year exceeded 6000, the number passing through Khorgos in the year exceeded 7000, Manzhouli exceeded 4500, and Erenhot exceeded 2000.

At the same time, the network of China-Europe regular trains has been expanding. As of November 2022, 86 transport routes have been opened, reaching 196 cities in 24 countries. Among them, China-Europe Freight train (Chang'an) has exceeded 4600 trains, China-Europe freight train (Chengdu Chongqing) has exceeded 5000 trains, China-Europe Express (Zhengzhou) has exceeded 1500 trains, China-Europe Express (Qilu) has exceeded 2057 trains, China-Europe Express (Hefei) has exceeded 768 trains, China-Europe Express (Shijiazhuang) has exceeded 500 trains, and China Europe-Express (Wuhan) has exceeded 539 trains.

On January 1, 2023, the first New Year trains left their departures one after another. Due to the severe cold weather, the transshipment at the port is blocked to some degree. Taking Ganzhou-Moscow train (leaving via Erenhot) as an example, the full T/T turns out to exceed 30 days . However, the scheduled services from Xi'an, Chengdu, Chongqing, Guiyang and other major terminals remains stable. It only took 13-15days for the train to travel from Xi'an to Moscow and St. Petersburg. In addition, the amount of goods collected in South China has increased greatly, according to the insiders, and the shippers are suggested to set aside 7-10 days ahead of ETD.

At present, the rail freight market has entered the peak season before the Spring Festival. The spaces in January are basically sold out, and freight forwarders are hoarding goods to be shipped in February. After the New Year's holiday, domestic trucking price and container leasing prices have risen to varying degrees. With the arrival of the Spring Festival, the growth of passenger trains is expected to violate the frequency of freight train and price of freight market.?

At the same time, Russia Railway issued a notice that the freight?rate?of overseas section will be increased again, up 10.16%, since January 1, 2023. China Railway requires that from January 1, 2023, a China-Europe freight train can only be shipped when it is loaded with 55 containers. The General Administration of Customs issued a notice that from January 8, all measures such as nucleic acid monitoring and detection for novel coronavirus of cold chain food will be cancelled. The impact of all these adjustments of policies on the railway freight market in the new year needs to be further observed in the new year.

Russia extends?trucks restrictions?by 6 months

Russia has extended?it's?restrictions?until June 30, 2023?for?trucks which comes from?the EU, Norway, Ukraine and the UK for six months.The ban came into effect on October 10 this year. It is a response to?restrictions?on Russian trucks by EU countries.Western countries have stepped up sanctions on Russia due to the Ukraine issue.Russian President Vladimir Putin previously stated that Russia would also fight back.

Nepal expects‘positive outcome’from feasibility study on cross-border railway

Six Chinese technical experts arrived in Kathmandu, the capital of Nepal, for a feasibility study and survey of the China-Nepal cross-border railway, which officials from both sides said marks another important step for the project as the two countries move forward to build the "heavenly road" across the Himalayas.

Bishnu Pukar Shrestha, the Nepali Ambassador to China, told the Global Times in an exclusive written interview that the first visit of Chinese experts to Nepal for the feasibility study is crucial for both Nepal and China, which will help promote land connectivity."Other teams will also follow and I believe that the survey will come up with a positive outcome "，he said.

China to upgrade intl logistics channels, cross-continent air freight networks

Zhang Dawei,an official from China's Ministry of Transport (MOT), made?a?statement during a press conference held by China's National Development and Reform Commission, the top economic planner, focusing on plans for China's modern logistics sector during the 14th Five-Year Plan period (2021-25).He vowed to further upgrade logistics channels connected to neighboring countries, in order to secure the transport of crucial commodities and boost international cooperation.?

The infrastructure of major transport channels in China will be enhanced to link with the cargo transport systems in neighboring countries and regions, which will further strengthen the regional influence of the Belt and Road Initiative, Zhang said. In 2022, special financial support was granted to the first batch of 15 cities, including Chongqing, Chengdu, Guangzhou and Zhengzhou, to establish freight transport hubs. More cities are to be included in 2023.?

8,800 trains?dipached?in the?New?Western?Land-Sea?Channel?in 2022

On December 31, the last container carrying corn was loaded on the train at Qinzhou Port East Station in Guangxi.It was sent to Liuzhou South, Gaizang, Lanzhou Dongchuan and other stations, marking?a new record. The cumulative number of sea-rail intermodal trains?in the Western Land-Sea Channel?will exceed 8,800 in 2022, a year-on-year increase of 44%, with an average daily departure of about 24 trains.

The sea-rail intermodal trains of?the?Western Land-Sea Channel?rised?from 178 in 2017 to 8,800 in 2022, an increase of 49 times. Up to now, trains?covered?12 provinces in western China, expanded their destinations to 338 ports in 113 countries and regions, and increased the number of transportation categories to more than 640.RCEP countries have become the largest source of goods flow to Beibu Gulf Port?now。

Trains passing through Khorgos exceeded 7,000 for the first time, ranking first in China

On December 28, a freight train loaded with daily necessities, mechanical parts, electronic products and other goods, left for Vorsino, Russia via the Khorgos railway port. This is the 7,000th China-Europe freight train to pass through the port this year, and it is also the first time that the number of freight trains left?Khorgos exceeded 7,000 in 2022.The number of freight trains leaving through Khorgos railway port is the largest this year.According to the statistics of China Railway Urumqi Bureau Group Co., Ltd., as of now, the number of China-Europe?freight?trains passing through?Khorgos has reached 7,006, and the cargo volume at the port has reached 9.45 million tons, a year-on-year increase of 11.06% and 5.05% respectively.?

China-Laos?railway?(Panzhihua)?dispached

On December 29, the China-Laos?railway?(Panzhihua)?dispached?from Panzhihua Railway Station. This is the first international freight train that organizes the goods?from?Sichuan in the form of a?full?train after the?operation?of the new Chengdu-Kunming Railway, and exports?them?to ASEAN countries in a direct way. It marks the successful running?of the international railway channel with the shortest distance, the highest efficiency and the most stable operation from Southeast Asia to Chengdu via Panzhihua, to the west of my country and Europe.

The first train consists of 24 containers, with a cargo value of about 10 million yuan, mainly including titanium dioxide, building materials, mechanical and electrical products and other industrial products in the province. It is expected to arrive in Vientiane, Laos in 3 days, and will be?transported?by connecting railways or roads?to?Vietnam, Thailand and other ASEAN countries.Saving?more than 15 days compared with?road-sea combined transportation.?