China Railway Express Sees Demand Surge as Covid-19 Boosts Intercontinental Rail Cargo
Kang Kai
DATE:  Nov 24 2020
/ SOURCE:  Yicai
China Railway Express Sees Demand Surge as Covid-19 Boosts Intercontinental Rail Cargo China Railway Express Sees Demand Surge as Covid-19 Boosts Intercontinental Rail Cargo

(Yicai Global) Nov. 24 -- China Railway Express, which runs the country’s freight train routes to and from Europe, is experiencing an unprecedented boom as rail transport comes into favor during the Covid-19 pandemic.

The Beijing-based firm delivered 54 percent more goods this year as of Nov. 5 compared to the same period last year, or around 927,000 twenty-foot equivalent units, according to data from the China State Railway Group.

At the moment, there are 40 to 50 trains bound for Russia and Europe queueing to get through the Alxa League and Manzhouli land ports in the Inner Mongolia Autonomous Region, Kang Yan, deputy general manager of Zhengzhou International Hub Development and Construction, one of the CR Express operators, told Yicai Global.

"In the past, congestion at ports only occurred in the spring and winter or during times of natural disasters, but now it has become the norm," he added.

Rail transport has been less affected by the pandemic compared to sea and air traffic, making it a preferred choice for cross-border e-commerce parcels and traders who need to transport bulk orders.

Most of the parcels transported by CR Express, which services 92 cities in 21 European countries, are consumer goods bound for the European retail market. Demand for these products is seasonal and consumers are very sensitive to terminal prices.

Rail transport is much more reliable than sea transportation, which reduces the risk of default caused by delayed delivery and hence is less risky for purchasers, an international logistics expert told Yicai Global.

It is also a lot cheaper than air cargo and twice as fast as sea freight, said Ma Lifang, deputy general manager of Zhejiang Trimax Industrial which exports products to Europe.

Rail travel can minimize the spread of the novel coronavirus too for while the routes traverse a number of countries, logistical personnel from one country will not cross the border with the train into another country, Kang said.

The booming demand for CR Express train services is likely to continue into the first quarter of next year, but will return to normal in the long run, Kang said.

Editor: Kim Taylor

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Keywords:   Supply and Demand,China Railway Express,Europe,COVID-19,Industry Analysis