Chongqing- The shipping demand of foreign trade enterprises had increased substantially due to the export surge of domestic goods for months. The global pandemic has continued to wreak havoc on the traditional sea and air freight modes in recent times. Against the backdrop, rail transport is a primary mode of transportation in logistics, especially international rail transport channels such as the China Railway Express to Europe and the New International Land-Sea Trade Corridor (ILSTC) with important undertakings have played positive roles in stabilizing the global industrial chain and supply chain, according to the Port and Logistics Office of the Chongqing Municipal People’s Government.
Shift to rail freight as shipping costs rise
China Railway Express to Europe (iChongqing file photo)
At 13:00 on September 14, China’s first freight train- China- Railway Express to Europe, completed a newly implemented quick customs clearance process with a full load of 42 containers at Tuanjiecun Station in Chongqing after entering the country through the Horgos border crossing in Xinjiang.
That same evening, five container trucks arrived at Tuanjiecun Station after completing the first road-rail trans-shipment from the ASEAN country of Vietnam, which was organized by the New Land-Sea Corridor Operation Co., Ltd. On arrival in Chongqing, the shipment was seamlessly transferred onto the China-Europe freight train, then dispatched towards Duisburg in Germany.
On September 10, the Chongqing cross-border truck service linked with Longbang Port of Guangxi Zhuang Autonomous Region officially launched the new Chongqing-Vietnam corridor.
On September 2, a batch of 50 containers transporting electrical components from South Korea to Poland arrived at Guoyuan Port in Chongqing and transferred to a river vessel in Shanghai.
An accumulative 27 regular cargo international (regional) routes have been opened, and 17 of them are in operation at Chongqing Jiangbei International Airport, covering four major continents with an average of 40 international cargo flights arriving per week.
The milestones listed above have been achieved thanks to the construction of an inland international logistics hub in Chongqing. As an important strategic strongpoint in Western Development strategy, with the Belt and Road and Yangtze River Economic Belt providing a vital link, Chongqing is continuing to explore, innovate and pioneer on the road to realizing an international logistical hub.
Since the domestic situation in terms of the pandemic has been brought under control, a large number of foreign shipping orders have flooded in, as transportation capacity on trunk sea routes has gradually declined, and the costs associated with shipping containers have continued to rise. Consequently, the inability to satisfy market demand has resulted in cargo shipments turning towards the China-Europe freight trains.
Price rises in container shipping have naturally had a knock-on effect for companies related to freight transport. Yang Jie, General Manager for Nurminen Logistics China Region, told iChongqing that company operating costs rose by over 100% between 2020 and 2021, with a principal cause being the rise in container prices. Nurminen Logistics entered the Chinese market in November 2011 and entered into cooperation with the Yuxinou (Chongqing-Xinjiang-Europe) railway, the first China-Europe freight train route, in October 2019.
“We now ship most freight from China to Finland through the ChinaEurope freight trains and sea-rail multi-modal transport services. Although there is still port congestion and delays that affect departure times, the China Railway Express to Europe has still displayed strong advantages in comparison to sea shipping,” explained Yang Jie.
It is worth mentioning that cross-border deliveries have become a new source of custom at Guoyuan Port Station on the China Railway Express to Europe. The first batch was dispatched from the station in June this year when light industry products were transported on this route for sale in Europe.
As of August, China-Railway Express (Chengdu-Chongqing) trains loaded with 43,956 parcels weighing 22.87 tons had departed from Guoyuan Guoyuan Port, where witnessed a total of 190 trains of China-Europe freight services from Chengdu and Chongqing.
On the return leg back to China, the railway services conveniently transported many goods, allowing companies to further enjoy the benefits presented by the Belt and Road.
Make vacant containers available
Changshou Direct Train of the New International Land-Sea Trade Corridor (iChongqing file photo)
An available container is hard to get in the shipping industry due to the slow recovery of the international shipping supply chain and tight capacity on shipping lines. Thus many foreign enterprises have found it hard to export their ready goods.
“One factor causing a shipping price surge is the unavailable container. There are no vacant containers.” A relevant director from the New Land-Sea Corridor Operation added, “In order to alleviate this situation, the company has transferred a lot of shipping containers from Singapore and Qinzhou Port in southern China to Chongqing Municipality in the southwestern region.
In addition, the company has also launched a service by making use of railway containers for sea transport. It saves the cost of changing containers and reduces the total transit time.
The ILSTC has maintained a stable operation against the background of global shipping prices hikes and port congestion. As for Chongqing, more than 35 trains on average are operated per week with a relatively stable price. Land-sea freight trains from Southwest China’s Chongqing Municipality had made a total of 1,493 trips from January to September of this year, increased by 77% year-on-year and surpassing last year’s total trips of 1,297, with its destinations covering 308 ports in 106 countries and regions on six continents.
More than a cargo channel, the China-Europe freight train serves as a way to fight against the COVID-19. In May of this year, the first China-Europe train with anti-epidemic supplies was transported via Guoyuan Port, loaded with 41 antigen self-test kits for COVID-19 detection departing from Xiamen bound for Duisburg, Germany.
Affected by the pandemic, container prices and shipping costs have increased significantly. The river-sea transport model based on rail transportation has also become an option for more and more exporters and outbound channels such as the China Railway Express to Europe, the ILSTC, and the golden waterway of the Yangtze River will further display their roles.