China - September 16, 2024

China-Europe freight trains see growing demand

(Voice_over)

From electronics to new energy vehicles, a wide range of high value-added products are now being transported from China to Europe by rail.

A bicycle maker in east China's Jiangsu Province is one of many businesses now using railway freight services amid the sustained geopolitical instability affecting shipping routes in the Red Sea.

And as demand rises, so do the rates. It costs about 9,000 U.S. dollars to send a 20-foot railway container from China to western Europe, a 15 percent increase compared with the start of the year.

Still, those in the freight industry say suppliers aren't deterred by the prices.

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Xu Cheng, Head, international freight company:

"The well-established suppliers have already recognized the trend and factored the increased freight costs into their pricing calculations. The China-Europe freight trains are fast and relatively cost-effective compared with air freight, making the increased costs manageable."

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Analysts say as overseas retailers stock up for the year-end shopping season, demand for cross-border railway cargo transport will remain high.

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Zhao Chao, Transportation analyst, Changjiang Securities：

"Since the second half of the year is the peak season for overseas consumption and markets there may need to start stocking up in August, I think demand for China-Europe freight trains will remain relatively high."

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Data from China Railway shows that in the first seven months of 2024, China-Europe freight trains shipped out about 1.2 million TEUs of goods, an 11 percent increase year on year.

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