Shippers and their service providers exiting the China-Europe rail route through Russia has slammed the brakes on a trade lane that expanded by almost 30 percent in 2021.
For China-Europe rail shippers, there are precious few alternatives to the northern corridor that passes through Russia and Belarus and handles almost all the volume moved on the land bridge.
Strongly growing volume on China-Europe rail is causing surprisingly few major delays as forwarders find new routes around potential choke points on the network.
The long-standing connections between CMA CGM and Yilport were again on display with the carrier’s former ports and terminals division head joining the Turkish port operator.
The network has evolved from a series of single shipper-driven services to more than 50, and a unique rail advantage, along with growing national economies, is at the core of the uptrend.
To say that the Trump administration’s steel tariffs and quotas have upset the global steel market would be an understatement, as nations who have hit their quotas are scrambling for new markets, and US importers are searching for new sources of affordably priced steel.
Along with trade tensions and the non-finalized new trade rules between the United States and the European Union, trade stakeholders are concerned about the condition of Turkey’s economy, a further deterioration of which would substantially hurt regional trade.
DFDS underscored its confidence, moving forward by placing an order today for a sixth ro-ro vessel that is designed to carry about 450 trucking trailers just two months after the order for a fifth sister ship at China’s Jingling shipyard.
More, faster rail route options with more reliability/visibility, are the chief reasons China-Europe rail use is increasing. Add the historic time advantage over ocean freight and cost advantage over air cargo and the net result is a shift in rail from an “interesting option” to “preferred transport mode" for many shippers.
Yilport, which signed a memorandum of understanding with the Mississippi State Port Authority in February, is promising to invest hundreds of millions of dollars in the state’s Port of Gulfport, which it says has the potential to feed volume, particularly refrigerated goods, between Gulfport and Yilport terminals in Ecuador and Peru.
Yilport's handling growth was driven by strong domestic terminal performances, due to rising exports, and by its Swedish terminal, which benefited from traffic diverted from labor-dispute-hurt Gothenburg.