Tensions in the Red Sea help Russian railways "rise to the throne"

Amid the tense situation and maritime insecurity in the Red Sea, shipping companies are scrambling to find alternative ways to transport goods from China to Europe.

Russia's Sapsan high-speed train. (Source: Russian Railways)

Rail routes through Russia are also seeing growing demand, although they account for only a very small proportion of containers transported between the Far East and Europe.

Freight companies say bookings on this route have increased sharply, as it is cheaper than air freight and faster than sea freight.

Julija Sciglaite, business development director of RailGate Europe, a company that transports goods from China via Russia to European countries, said that shipping times range from 14 to 25 days depending on the origin and destination, and are significantly faster than by sea.

Ms Sciglaite informed that after the outbreak of the conflict in Ukraine, the number of bookings for the route via Russia dropped significantly, but last year the route started to recover due to reasonable transit times and affordable prices.

“Notably, following attacks on ships in the Red Sea in late 2023, the demand for rail transport has increased even more,” she stressed.

Mr. Igor Tambaca, CEO of the Dutch logistics company Rail Bridge Cargo, also said that the number of bookings on the China-Europe railway route has increased by 37% in the past four weeks.

The cost of shipping a 40-foot container from China to Europe by rail is around $7,900.

Shippers who do not want to send goods by rail through Russia can use the route that runs from China through Kazakhstan to Türkiye via the Caspian Sea, but this takes about 26-29 days.

Source: https://baoquocte.vn/cang-thang-tai-bien-do-giup-duong-sat-nga-len-ngoi-259562.html