Logistics Update 2022: Closure of Rail Freight from China to Europe

Transporting goods via train is another option to consider when you are in the sourcing or manufacturing business. We can tell that because we, at ODM, also depend on it. Alongside sea and air freight, rail freight makes sending goods between China and Europe easier. Rail freight transport is faster than sea freight and more cost-effective than air freight.

Businesses experienced these benefits from both regions until Russia and Ukraine war. The tension between the two countries started in February 2022 and continues until today.

Due to the tension between them, China-Europe rail freight route is no longer available.

Rail Freight from China

China-Europe Rail Freight

Before the Russia-Ukraine war, most of our productions were shipped from China by boat. Sailing time took around 25-35 days, depending on sailing schedule, customs, port location, and trucking.

Air Freight can be much faster, with 3 to 7 days being the usual window. ODM was always caught pushing marketing managers on one side for decisions and factories on the other for speedy production to make sure products arrive on time. Rail freight allowed us to deliver our products to our clients in Europe easily.

Advantages of Rail Freight Transport

Faster than a ship

From Chengdu, China, the rail journey to Poland takes 13 days only. That is roughly half the time it takes to move containers by ship. With that said, businesses can react more quickly to the ever-changing market demands.

Moreover, shorter transit times lead to more rotations and thus less stock in the supply chain. Therefore, they can free up working capital and lower their capital costs.

Cose-effective than a plane

Sea freight is cheaper than air freight. However, the transit time takes longer. Thus, businesses prefer air freight even though it costs higher when considering speed.

But when time is not a real deal, rail freight is the best option to consider. It is more cost-effective than a plane yet faster to deliver the goods in Europe than a ship.

Get updated with the changes in the logistics industry:

The Covid-19 pandemic tremendously impacted air freight. It caused delays and cancellation of most flights. Here’s how the pandemic affected air freight from China.

COVID-19 Hammers Air Freight from China – Expect Delays

Given the limited space on airline cargo holds, weight and volume are crucial factors. Depending on whichever is more expensive, Air Freight Costs will be charged in either volumetric weight or the actual weight. Here’s how you can estimate your air freight cost.

Calculating Air Freight Costs: By Weight or Volume?

More cost-effective than other freights, sea freight is recommended for products of higher quantity. But time, the shipping costs from China have increased tremendously. Here’s why.

Shipping Merchandise: Why are Shipping Costs from China Soaring?

The foreign trade industry in China has been facing hard times recently. Containers are increasingly difficult to order, which has led to shipping container rates soaring four times their original rate since October 2020. Here are the reasons.

Foreign Trade: Current Shipping Container Rates Have Soared 4 Times

Final Thoughts,

It goes without saying that the war between Russia and Ukraine has had great effects worldwide. Businesses from logistics and manufacturing are among those industries that suffer a lot.

With the continuous tension, more changes are expected to come in the following months. It is definitely crucial for businesses to keep updated on the growing impacts of this crisis.