International rail

Sanctions imposed on Moscow following its invasion of Ukraine continue to limit the attractiveness of transport times as low as 12 days offered by forwarders on the China-North Europe rail network.

The German-based forwarder remains the largest and most attractive takeover target in a cash-rich industry where the main players are all looking for opportunities to consolidate.

While demand for domestic rail freight in the UK grows, the network’s ability to handle the more complex smaller shipments has been criticized by cargo owners.

Shippers want Congress to address their inability to challenge rail demurrage fees when they contract for merchant haulage, but finding a solution will be tricky, writes Journal of Commerce Executive Editor Mark Szakonyi.

The Singapore-headquartered terminal operator has extended its reach deeper into the landside business, targeting the growing Central Asia rail freight market.

A “perfect storm” of poor schedule reliability, persistently high electricity prices, weak demand and cheaper diesel for trucking continues to undermine Europe’s rail-dominated combined transport sector.

Despite being prepared for divestiture, the performance of global forwarder DB Schenker is the only reason Deutsche Bahn group is profitable at present.

Far greater ambition will be required by European Commission policy makers if targets to double the market share of rail freight by 2050 are to be achieved, according to rail freight operators.

German unions demanding inflation-busting wage increases walked off the job Monday, bringing the country’s transport system to a halt.

The combined railroad has an opportunity to divert more than 64,000 truck shipments to intermodal rail, according to S&P Global, but that’s only the crest of a wave of US imports from Mexico. 

Official data shows overall volumes on the China-Europe rail network rose 6 percent last year over the then-record throughput handled in 2021, but there is no distinction between cargo destined for Europe or Russia.

WiseTech Global is doubling down on its reach into US intermodal networks with its $414 million purchase of Blume Global three weeks after acquiring drayage tech provider Envase.

Long-haul rail freight in Europe, the main alternative to road transport, is being undermined as the cost of electricity far outstrips diesel, say combined transport stakeholders.

A broad shift in China-Europe rail from the northern route through Russia to the middle corridor transiting Central Asia is unlocking new and largely untapped containerized markets for service providers.

Moving a significant share of Europe’s inland cargo from road to rail will be costly and challenging, but it is achievable through better utilization of door-to-door combined transport, a new report has found.

The rising cost of electricity is the latest challenge facing rail freight in Europe, which finds itself being uncompetitive with trucking while at the same time being overwhelmed by growing volumes.

Multiple crises in Europe are leading to greater demand for rail transport, but the network is not able to handle any large-scale cargo shift from the disrupted road and barge sectors.

The main rail option from China for European importers is via the so-called “middle corridor,” but as demand steadily increases, so too are the many chokepoints along the route.

Elevated demand for rail cargo on the only viable China-Europe rail route continues to overwhelm the existing infrastructure, with congestion building at Central Asian intermodal points.

Three FMC members ask the STB not to approve the proposed merger of Canadian Pacific Railway and Kansas City Southern, saying the deal would result in the loss of cargo to Canadian ports.

The only real option at present for rail cargo from China to Europe is the so-called “middle corridor,” even though the transit is often longer than ocean and 30 percent more expensive than the largely out-of-bounds northern alternative through Russia.

A new multi-year agreement will allow Canadian Pacific to handle the majority of CMA CGM’s freight through Canada, underscoring the railroad’s aggressive approach to gaining international intermodal volume.

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.

The land bridge rail network between Asia and North Europe, a popular alternative to ocean shipping, is now restricted as carriers suspend bookings to a key rail hub in Belarus.

The creativity of service providers is being tested as COVID-19 infections continue to spread around Asia and disrupt regional supply lines.

The freight volumes that have stressed the Asia-Europe rail trade for the past 10 months after shifting from the congested and costly air and ocean markets have begun to ease ahead of Chinese New Year.

Pandemic-born disruption will continue forcing logistics practitioners to rework supply chains in 2022 to deal with ongoing congestion and equipment shortages.

International air freight and last-mile delivery saw the fastest revenue growth in the transportation sector last year, while industrial transportation suffered.

Block train activity has lately become a hot carrier play as operators active out of India work to deftly manage available capacity in an elevated freight market.

The new Balli intermodal play in India builds on Maersk’s ongoing efforts to target new customer segments predominantly tethered to transshipping in the absence of long-haul direct carrier calls in the region.

CMA CGM has acquired a rail operator in Spain, adding an intermodal dimension to the ocean carrier’s expanding integrated service portfolio.

Heightened cargo demand and congestion issues at transshipment hub Colombo, Sri Lanka, are spurring new containerized rail services to India’s interior.

As cost-conscious India shippers seek “more for less,” value-added services have begun to occupy center stage in freight contract negotiations, including bespoke intermodal services.

Maersk has teamed up with intermodal rail giant Container Corporation of India to offer block train movement from Kolkata to Jawaharlal Nehru Port Trust to feed the carrier’s weekly long-haul sailings out of the busy public harbor.

Carriers believe new Indian rail incentives, coupled with the recent lifting of a 14-day quarantine for incoming Chinese vessels, will have a positive impact on inventory flow.

As container volume has picked up, trucking and logistics executives say that CSX’s domestic intermodal service has become unreliable in two key southeast US rail ramps.

BNSF has named Kathryn Farmer, who has been with the western railroad for 28 years, as its new CEO effective Jan. 1, 2021. She will become the first female CEO of a North American Class I railroad.

Union Pacific Railroad will institute a $500 surcharge on excess cargo for all shippers in Seattle to divert as many assets to Los Angeles as possible amid record-breaking cargo spikes in Southern California.

For the third time this month, Union Pacific has increased spot rates and its peak season surcharge in Los Angeles, raising prices on small shippers to record levels and likely pushing excess cargo back to trucking.