SOURCE / ECONOMY
China-Europe cargo trains may offer alternative if Red Sea tensions worsen
Published: Dec 20, 2023 10:24 PM
A cargo ship called Cosco Ashdod docks at an automated port in Qingdao, East China's Shandong Province on November 1, 2023. The port operates many services to the countries and regions participating in the Belt and Road Initiative. The customs-clearing efficiency of the ship has improved by 10.8 percent thanks to the implementation of multiple smart measures. Photo: VCG

A cargo ship called Cosco Ashdod docks at an automated port in Qingdao, East China's Shandong Province on November 1, 2023. The port operates many services to the countries and regions participating in the Belt and Road Initiative. The customs-clearing efficiency of the ship has improved by 10.8 percent thanks to the implementation of multiple smart measures. Photo: VCG



 
As maritime routes to Europe and the Mediterranean region have been affected amid tensions in the Red Sea, Chinese business insiders said that China-Europe cargo trains may offer an alternative if the conflict intensifies. 

A transport agent surnamed Meng in Erenhot, North China's Inner Mongolia Autonomous Region, told the Global Times on Wednesday that the China-Europe freight trains will be a substitute for intercontinental transport if maritime routes are blocked.

Erenhot port is a critical exit point for outbound China-Europe freight trains. From January 1 to December 10 this year, Erenhot has handled 3,118 inbound and outbound China-Europe freight trains, up 32.2 percent year-on-year, according to the Xinhua News Agency. 

"The general shipment fee was increased due to the conflicts in the Red Sea, so we had to switch from ships to the China-Europe freight trains to deliver goods to Poland," Ding Yandong, general manager of Ningbo-based Rollmax shutter component Co, told the Global Times on Wednesday. 

Ding noted that sea shipping is still available, but it means rounding the Cape of Good Hope, which adds about 7,000 kilometers to the trip -taking more time and costing more money.

Yemen's Houthi rebels on December 16 said they have launched cross-border drone attacks on several targets in Israel's southern city of Eilat. The rebel group has vowed to prevent all Israel-bound commercial ships from passing through the Red Sea until the ongoing Israeli war on the Palestinian enclave of the Gaza Strip ends, the Xinhua News Agency reported.

Multiple global shipping companies including Maersk, MSC and Evergreen Marine Co plan to steer clear of the Suez Canal to avoid conflicts. Experts said the situation is likely to further drive up shipping rates.

"It usually takes about 26 days for sea shipments from China to Poland, and rounding the Cape of Good Hope adds 10 more days, The China-Europe freight trains take about 16 days in total, which is more efficient but also more expensive," said Ding. 

Meng noted that the China-Europe freight trains don't have sufficient capacity to completely replace maritime transport, but they do offer an alternative.