Latest Operation of China Europe Railway Express(Week 14)

Based on our latest observations, the transit time of China-Europe freight trains has become better. Delays caused by weather, German railway workers' strikes and other reasons are gradually reducing as time goes by. Taking Chengdu and Chongqing as examples, the trains shipped by most platforms are running smoothly. The four major ports in China have good reloading efficiency. Alashankou and Khorgos take an average of 3-5 days to reload and leave the country; Manzhouli takes an average of 6-12 days; due to the shortage of wagons and the heavy snowfall in Zamyn-Uud, in Erenhot Freight trains arriving in Russia via Mongolia were affected to some extent, but the delay was not obvious.

The overall transit?time of European routes?and Russian routes?is improving - it takes about 12-13 days from domestic departure stations to Malaszewicz, about 18-20 days to Duisburg and Hamburg, and about 24-27 days to Budapest and Milan.; it takes about 11-18 days from domestic stations to Elektrougli?and Selyatino, and about 20 days to Moscow. Anyway,some routes need to be transloaded twice in Brest and Malaszewicz, so the time on the way is extended by 3-5 days.

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The container market remained stable this week, with rental prices changing at a high level. The price of container rentals from various domestic cities to stations?such as Duisburg, Hamburg, Moscow, and Minsk is the same as last week?while?the prices of some routes have increased by 50-100 USD. There is a shortage of containers in East and South China, and prices from Shanghai, Ningbo, Guangzhou, Shenzhen and other places to Milan and Budapest have increased. At the same time, the price of container rental in Central Asia is also rising, with an increase of about 50-100 US dollars in cities such as Tashkent and Almaty.

The spot freight rate of China-Europe freight trains this week is as follows:

European-bound service

Outbound service :Westbound space?is?on sale in April. There were only a few space?left at the beginning of the month, and most of them?would be released in mid-to-late April. Recently, a new route?has been added from Zhengzhou to Geleen in the Netherlands, and it is expected to operate once a week. Space on the Xi'an Express is tight, and due to shortage of supply, the market spot freight rate is 10% higher than the platform booking price. Many customers choose Xi'an's weekly trains as an alternative.

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Return journey - Prices for China-Europe freight train do not fluctuate much and are basically updated monthly. In April, there were fewer space?from Europe to China, and routes destined for Changsha, Hefei, Yiwu, Jinhua, and Xi'an were basically sold out. For other routes, such as freight trains from regular European stations to Jinan, Wuhan, Zhengzhou, and Chongqing, some spaces?can be reserved.

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Russian -bound service :There is less demand for Russian freight. Spaces will be released in mid-to-late April. However, at the beginning of the month, there were still some spaces to be booked?in Chongqing, Xi'an, Jinhua, Wuhan, and Zhengzhou, and the booking price returned to the lowest level since 2023. Due to the sanctions against Russia, the Russian business of many companies has been greatly affected. Industry insiders tell us that collection issues are a major concern for them. Currently, agents are actively seeking solutions by expanding collection banks and increasing overseas collection channels. In order to ensure cash flow, many companies have put forward risk control requirements for Russian business.

Central Asia-bound service: spot rate remained stable in mid-to-early April, and the supply was relatively sufficient. However, transportation?on popular routes are still in demand. For example, ?"Xi'an-Baku" route have been booked until the end of this month. The LCL freight trains from Zhengzhou to Tashkent have been sold out, and there is sufficient supply of FCL space in mid-to-late April.

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