Special
The steel camel team is increasingly favored by Chinese exporters to Europe
Seetao 2021-04-01 10:07
  • Due to the pressure of maritime transportation, land export via Russia to Central Asia has become an attractive alternative
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In 2020, affected by the new crown epidemic that swept the world, countries have implemented blockade measures and foreign demand for Chinese products ranging from electronic products to home appliances has surged. China, which has quickly recovered from the epidemic, dominated global trade in the second half of 2020. Some companies and institutions said that due to the time pressure of maritime transportation and the shortage of containers, land exports via Russia and Central Asia have become an attractive alternative. In the first two months of 2021, there will be more than 2,000 freight trains from China to Europe, twice as many as when the new crown epidemic broke out a year ago. According to national media reports, in 2020, the number of China-Europe express trains increased by 50% year-on-year, which is about 7 times that of 2016.

A salesperson from a sports equipment company in Yiwu said that her business is usually exported by sea. However, since mid-2020, shipping costs have "exploded" and transportation time has doubled, forcing her to switch to rail. She said: "Our major customers in Europe, such as those in France and Germany, complain that the transportation efficiency is too low, and they may reconsider other exporters. Now we mainly rely on the China-Europe Express to ship our goods." Eurostat Data show that in 2020, China will surpass the United States to become the EU's largest merchandise trading partner, and total imports from China have increased by nearly 6% year-on-year, reaching approximately 384 billion euros (approximately 2.97 trillion yuan).

According to reports, the reason for the recent substantial increase in east-west land transportation is that container ship transportation has suffered severe damage. One of the container ships has blocked the Suez Canal after it ran aground a few days ago. The Belt and Road Initiative has also unexpectedly promoted a surge in land transportation. Beijing’s International Infrastructure Initiative emphasizes the symbolic meaning of “steel camels” and encourages Chinese provinces to promote cross-border rail transportation.

Chinese provinces have recently invested specifically in the transportation of items that are in high demand during the blockade. In February 2021, a train in Jiangxi Province, loaded with dozens of cars of washing machines and other household appliances, began a 15-day trip to Moscow.

Professional organizations that provide export services in Shanghai and Shenzhen say that some of their customers are now switching to rail transportation. Agents in Shanghai said that recently electronic products, fitness equipment and products related to the new crown epidemic will choose land transportation. These commodities are in great demand and urgent, and they are not suitable for air transport. Although the China-Europe Express train continues to increase its capacity, it is still not enough. Another agent in Shenzhen said that 20% to 30% of her customers have chosen to switch from sea transportation to rail transportation, and the shortage of containers that plagued maritime routes is also affecting land transportation. Editor/Xu Shengpeng


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