Latest Operation of China Europe Railway Express(Week 16)

The number of China-Europe freight trains has increased this year. According to China Railway Group, in the first quarter, a total of 4,541 freight trains were operated, delivering 493,000 TEUs of goods. It?marks?a year-on-year increase of 9% and 10%, respectively. At the same time, the railway department is committed to improving port transportation capacity and customs clearance facilitation, making?traffic volume?of the west (Alashankou, Khorgos), middle (Erlian), and east corridors (Manzhouli, Suifenhe, Tongjiangbei) increased by 8% year-on-year respectively. %, 14%, 8%.

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As markets change, we are noticing an increase in freight trains?in European direction. Until the 16th week, a large number of trains bound for Europe arrived at Alashankou and Khorgos railway ports, putting pressure on the efficiency of reloading. For example,trains shipped from Chongqing could basically be reloaded at the port after waiting for 2-3 days before leaving China. However, this week, the waiting time for was extended by 3-4 days. Chengdu, Zhengzhou, Hefei and other platforms also reported the congestion situation here.?In?Poland，due to the traffic control on the Swiebodin-Toporow railway section, the overall transit time of China-Europe freight trains may be extended by 1-2 days.

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In Russia, emergencies along the route have also affected the operation of freight?trains. On April 9, a bridge broke in half in the Smolensk region of Russia. The bridge is a major transportation hub between Belarus and Russia, causing the Moscow-Minsk railway to resume normal operations after being restricted for 24 hours. On the other side, southern Russia has suffered from floods ,especially Orenburg/Kurgan?area.Relevant departments are considering detouring other routes?to ensure the safety of rail freight.

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This week, rental container prices fluctuated at high levels. Due to the disparity in container demand between outbound and return journeys, the subsidy for return-haul container rentals has increased to US$600-800. Prices from domestic cities to Malaszewicz, Warsaw, Lodz and other places change rapidly and require prompt attention. There are sufficient container reserves in coastal areas, but there is still a shortage of containers inland, resulting in a price difference of more than 100 US dollars.

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The spot rate for this week are as follows:

European-bound service:

Outbound trip-This week, various platforms have successively updated booking prices and remaining space. The overall price is on the rise ——?spaces?in Chongqing, Zhengzhou, Jinan, Jiaozhou and Suzhou are tightened, and express trains from Xi'an to Duisburg and Hamburg continue to be popular, with all spaces?in April sold out. According to the plan, the Xi'an express line will increase to four flights per week, and the price will increase by US$200. The price of the general line to Marasevic, Duisburg, and Hamburg will increase by US$50-100. In addition, Zhengzhou?and?Chongqing?have increased cost?one after another, with the highest increase of Zhengzhou-Malasevich reaching US$500. The booking price in Chengdu remains unchanged for the time being. The latest ?prices on Yiwu, Jinhua, Suzhou, Changsha?have not yet been released?till now.

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Inbound trip-Prices of most return trains have not been updated yet. The spot rate remains in the range of 2,500-3,000 US dollars, and some lines are showing a downward trend. For example, the rate of the Hamburg to Zhengzhou train has been reduced by 300 US dollars per container, and the return rate of the Xi'an Express has been rapidly reduced by 1000?US dollars per container. At the same time, the prices of routes destined to Chengdu and Chongqing remain unchanged for the time being. Most platform spaces are scheduled to be in mid-to-late April.

Russian-bound service: Under the continued influence of sanctions, freight demand in the Russian direction has encountered great challenges. Operators have adjusted their train plans accordingly to ensure container transportation needs. Currently, the space?on most platforms have been released until mid-to-late April, while Yiwu, Chongqing, and Jinan have opened up May on some routes.

Central Asia: The trains to Central Asia operate stably and depart regularly every week. The price of Central Asia in May has been updated. Service from Xi'an to Baku is fixed to twice a week, and from Xi'an to Poti is once a week. The spaces in April have been sold out. The Zhengzhou platform has appropriately adjusted the booking prices for routes to Almaty, Tashkent and Baku, with an adjustment range of about 500 yuan.

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