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China-Europe Railway Express: Driving Trade Growth and Logistics Evolution

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China-Europe Railway Express: Driving Trade Growth and Logistics Evolution

The Logistic News by The Logistic News
March 14, 2024
in Land, Logistic
Reading Time: 2 mins read
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China-Europe Railway Express: Driving Trade Growth and Logistics Evolution
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The China-Europe Railway Express experiences a surge in activity, with nearly 3,000 trains dispatched during the initial two months of 2024. This expansion underscores the increasing significance of the service in expediting and securing freight operations for China-EU trade amidst evolving global logistics landscapes.

China Railway reports that the China-Europe Railway Express operated 2,928 trains in January and February, transporting 317,000 20-foot equivalent unit (TEU) containers of goods. These figures reflect a 9 percent and 10 percent year-on-year increase, respectively. The network’s coverage now extends to 120 cities in China and reaches 219 cities across 25 European countries.

The uptick in operations is partly attributed to heightened demand from European nations following the Red Sea crisis, prompting businesses to seek dependable alternatives to maritime transport. Yuan Xiaojun, a manager at China-Europe Chang’an, notes a substantial rise in inquiries and bookings for trains, with February witnessing a 20 percent to 30 percent surge in activity.

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Lu Zhao, head of a Chengdu-based freight forwarding company, emphasizes the China-Europe Railway Express’ role in ensuring stability and predictability for international supply chains. Its consistent transit times are particularly crucial for industries reliant on timely deliveries.

Traders between China and Europe are increasingly favoring rail transport, leading to a diversification of transported goods. Specialized trains now carry equipment and vehicles from major Chinese manufacturers to Europe. In the initial two months of 2024, over 30 customized trains were operated for companies like Zoomlion Heavy Industry, Sany Heavy Industry, Geely, and Foton Motor. Additionally, several provinces introduced specialized trains for new energy vehicles (NEVs) throughout 2023, reflecting the growing NEV demand in Europe.

Furthermore, the service is expanding beyond rail, with integrated sea-rail transport routes enhancing connectivity. A recent shipment of electric water heaters from Thailand to Germany, passing through Laos, Vietnam, and China, exemplifies the logistical achievements facilitated by this multimodal approach.

Since its inception in 2011, the China-Europe Railway Express has become a cornerstone of Eurasian trade, offering a reliable, efficient, and secure freight option. With over 85,000 trains operated by February’s end, the service signifies a pivotal shift in trade dynamics and underscores the potential for continued growth in global logistics and supply chain resilience.

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