China-Europe freight trains weekly commentary（Jan.2-Jan.8)

China-Europe freight train operation updates(week 2)

In the second week of 2023, the impact of the cold weather on the Sino Kazakhstan border is continuing. The?west-bound China-Europe freight trains (including the European and Russian directions) gradually slow down. Transloading and handling at the ports deferred. According to the estimation of freight forwarders, 60% of the trains are currently parked in Xinjiang and Gansu, and some return vehicles are also reserved along the way in Kazakhstan and Russia. On the other hand, some trains in transit departing earlier in advance of Kazakhstan's windy and snowy weather showed a good timeliness, For example, the T/T from Xi'an, Chengdu, Chongqing, Zengcheng to Moscow is 13-18 days; It takes 15-17 days from Changsha, Chongqing, Chengdu to Minsk; and the overall duration from Chongqing, Chengdu, Xi'an and Yiwu to Malaszewicze is about 12-16 days, and 20-23 days to Duisburg and Hamburg.

This week, the European-bound service and the Central Asia-bound service had sufficient supply in space, and the transport demand declined. The booking price at some terminals showed a decline of about 5%. While the supply and demand of the Russian line remained basically balanced, and the spot market freight rates to Russia from some regions were lowered by about 200 to 300 dollars. With the Spring Festival approaching, a large number of truck drivers returned home for vacation, and the number of trucks traveling on national highways decreased by 8.64% compared with last month. Trailer prices in North China and South China have increased significantly, by about 3% - 5%., East China has not changed much on a month-on-month basis. At the same time, container leasing prices vary significantly in different regions. The difference between the container price of South China to Russia line and that of Europe line has expanded to 500-600 dollars.

After January 8, the Russian New Year holiday is coming to an end, and logistics and trading companies are returning to work one after another. According to the weather forecast, on January 12-15, the strong cold air will come, and China will suffer from rain and snowstorms, and Cargo Talk will pay close attention to the follow-up impact of the above factors.

Kazakhstan moves uranium exports through Middle Corridor

Kazakhstan’s state-owned nuclear company has delivered a batch of uranium to Canada via the Middle Corridor, a transport route that is in growing demand as exporters seek to bypass sanctions-hit Russia.Kazatomprom “announces it has completed a physical delivery of natural uranium using the Trans-Caspian International Transport Route (TITR),” the company reported last month.?

This was not the first time Kazatomprom had used the Middle Corridor.It “has successfully used the TITR as an alternative route for delivering Kazatomprom’s material to western customers since 2018, helping to mitigate the risk of the primary route through St. Petersburg being unavailable, for any reason,” the company explained.

1st "Vietnam-China-Kazakhstan" freight train launched

On December 31, 2022,?a?special freight train carrying electronic components and other goods departed from Pingxiang Railway Station in Guangxi. This?train?will go to the Xi'an Railway International Port for assembly and transit, and then continue to Kazakhstan through the China-Europe?freight?train. It is expected to arrive at the destination in 25 days.The successful launch of the train marks the addition of new lines for China-Vietnam and China-Europe joint trains, providing strong support for the smooth?operation?of domestic and international transportation routes.

China unveils first 5-year plan to modernise logistics sector

China has released its first five-year plan to modernise the country’s logistics sector through 2025, according to the general office of the state council. The plan highlights the need to promote the digital transformation of the logistics sector, improve the quality and efficiency of services, and enhance the competitiveness of businesses.

According to the five-year plan, China will promote the use of green packaging materials, prioritise the development of cold chain logistics, and further reduce energy use and emissions in the logistics sector.Other key measures in the plan include improving modern logistics systems by taking steps such as accelerating the digital and smart upgrading of the transportation, delivery, storage, and packaging sectors and strengthening weak links in rural areas and cold chain logistics.

Chengdu, Chongqing Implement 160 Major Projects in Three Years

Since the announcement of the regional development strategy of the Chengdu-Chongqing economic circle in 2020, Chengdu and Chongqing have implemented 160 major projects with a total investment of 188.95 billion yuan (about USD 27.45 billion), including building a multiple-dimension traffic network.During the first 11 months of 2022, Chengdu and Chongqing launched the China Railway Express (Chengdu-Chongqing), operating over 5,000 trains, and jointly developed the New International Land-Sea Trade Corridor (ILSTC), which covers 393 ports in 118 countries (regions).

Chongqing and Sichuan have been approved as national logistics hubs for production and services due to their commitment to constructing an integrated and high-level Free Trade Zone. The Chengdu-Chongqing region has become a window for China to open to the west and south now.To the east, the Yangtze River Golden Waterway strengthens the connection with the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area, connecting the river to the sea; To the west, the China Railway Express is opened, integrating into the Asia-Europe corridor and opening up a strategic channel from Xinjiang to Tibet.To the south, connecting the ILSTC, covering Southeast Asia and South Asia; To the north, the international trains departing from Chengdu and Chongqing can connect to the Beijing-Tianjin-Hebei region, the China-Mongolia-Russia International Economic Corridor, and Northeast Asia.

China-Europe?freight?train（Chang'an）?exceed 4,600?in?2022

According to the news at the press conference on the high-quality operation of the China-Europe?freight?train (Chang’an ) on January 5, xian’freight trains exceeded 4,600 in 2022, reaching 4,639 trains, a year-on-year increase of 20.8%, and a total of 16,054 trains.

In 2022, Xi'an became the first city where the annual number of China-Europe freight trains exceeded 4,600 in China.Xi'an has?operated?trains across the Caspian Sea and the Black Sea, and the number of international transport routes has reached 17. At the same time, with the smooth opening of the first "Guangdong-Shaanxi" international train (Guangzhou-Xi'an-Europe) on New Year's Day in 2023, the number of "+Western Europe" lines has increased from 15 in 2021 to 18 now.

Number?of?China-Europe?freight?train?(Wuhan) increased by more than 30% year-on-year

According to the railway transportation department, in 2022, China-Europe freight train (Wuhan) operated a total of 538 trains, of which 267 westbound and 271 eastbound. Compared with the previous year,the total number of trains increased by 34%.China-Europe?freight?train?(Wuhan) has become an important logistics channel in Hubei. In 2022, a total of 7.934 billion yuan worth of light industrial textiles, electronic components, auto parts, child seats, solar modules, agricultural machinery, tea, citrus and other agricultural and sideline products made in Hubei?have?been shipped to Germany, Russia and other countries,an increase of 12.57%; Imported milk powder, red wine, furniture, automobiles and other products from Europe, with a value of 6.086 billion yuan, a year-on-year increase of 5.89%.

Alashankou launches?“direct”?service?for trucks?

Cnr.com?reported?on January 1 that the Alashankou Port in Xinjiang has recently launched the "direct" service for trucks. This means that Alashankou Port,as a land border port-type national logistics hub, has entered a new stage of high-speed development, adding impetus to the import and export trade in the new year.

China-Europe?freight?train（GuiZhou）launched it’s first trip in 2023

On January 5, Guizhou’s first westbound freight train in 2023 departed from Dulaying Station of Guiyang International Land Port. 55 standard containers are fully loaded with TV sets, vacuum cleaners, radiators, daily necessities and other goods, and are expected to arrive in Vorsino, Russia within 15 days. Guizhou?province?is expected to?dispached?5 more China-Europe?freight?trains in January, with a total of over 330 TEUs, an increase of 80% over the same period in 2022.