The high-quality development of the China-Europe Railway Express has accelerated, and multimodal transportation has become an important support for foreign trade logistics.

2024-04-22660
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In recent years, relying on the well-developed railway network and port infrastructure within the country, the China-Europe Railway Express has continuously optimized its route layout and improved operational efficiency, gradually becoming one of the core logistics channels for China's foreign trade imports and exports. It is also an important multimodal transport alternative to sea transportation, providing a reliable option for foreign trade enterprises to cope with geopolitical risks and supply chain fluctuations in international sea transportation.

From the perspective of route layout, regional China-Europe Railway Express brands such as Qilu Express have continuously enriched their product portfolios. Besides traditional China-Europe trunk lines, they have successively launched special routes such as the Japan-Korea Land-Sea Express, the SCO Express, and the Shandong Express, connecting maritime, road, and railway transportation links, achieving seamless connection of sea-rail transportation. Goods are transported from Japan and South Korea by sea to Qingdao Port, and then directly transported by railway through ports such as Khotoursu and Alashankou to reach Central Asia, Russia, and the European hinterland, significantly reducing the transportation time from Japan and South Korea to inland regions of Eurasia.

Compared to pure sea transportation, the advantages of the China-Europe Railway Express lie in its stability of timeliness. Traditional sea transportation is affected by factors such as geopolitical conflicts on ocean routes, port congestion, skipped ports due to delays, and rising additional fees, resulting in large fluctuations in delivery periods. However, the China-Europe Railway Express is less affected by maritime risks such as sudden ship attacks and channel blockages. In high-risk maritime channels such as the Red Sea and the Strait of Hormuz, when the situation is tense, the railway and sea-rail transportation schemes become alternative options for many customers with high timeliness requirements, such as mechanical products, auto parts, and daily necessities.

In terms of service capacity building, the operators of the railway express and freight forwarding companies have continuously improved the supporting services at both ends: pre-stored goods, container unpacking and re-packaging, customs declaration and inspection, distribution and delivery, and supply chain integration. These value-added services have gradually become standardized. Some routes can provide door-to-door full-service, directly delivering goods from domestic factory warehouses to overseas customer warehouses. At the same time, special transportation solutions for general goods, large equipment, and temperature-controlled goods have been developed to meet the diversified export needs of foreign trade.

However, industry practitioners also need to objectively recognize the limitations of the China-Europe Railway Express.

First, in terms of price, the freight of the China-Europe Railway Express is usually higher than that of ocean shipping, suitable for high-value and time-sensitive goods; low-value bulk goods still have advantages in cost when compared to ocean shipping.

Second, there are seasonal fluctuations in capacity and transportation capacity, with tight availability during holidays and before the peak seasons in overseas markets, requiring advance booking and reservation of shipping space.

Third, there is the possibility of inspection and congestion at border ports. Extreme weather conditions and adjustments in border policies can cause temporary delays, and freight forwarders need to inform customers of risks in advance and reserve a reasonable delivery buffer period.

The China International Freight Forwarders Association reminds freight forwarders and foreign trade customers: The current international logistics market has significantly increased uncertainty, and the risk of a single transportation channel has risen. A multi-channel supply chain layout will become the norm for foreign trade enterprises. It is recommended that customers plan multiple logistics schemes such as ocean shipping, China-Europe Railway Express, and road transportation in parallel based on the value of goods, delivery deadlines, and budgets. Freight forwarders should conduct pre-assessment of schemes, provide advance information on freight rates, timeliness, and risks, and provide customers with a full-chain supply chain solution. 

In the future, as the customs clearance efficiency at border ports continues to improve and the overseas supporting network is perfected, the service coverage of the China-Europe Railway Express will continue to expand, and the multimodal transport system will further mature, continuously supporting the stability of foreign trade.


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