Quote

Blog

Rail service from Far East Asia to European countries through Russian rail networks from Vostochny port to St. Peterburg has performed more reliable than traditional ocean container shipping way.

11 Jun 2021

By Arthur Chen


At the last week of May, the ocean freight rate has reached USD 13000 – 14000/40’ from Asia to European main ports. The highest market ocean rate could be up to USD 15000/40’ ! According to Worldwide Container Index ( WCI), the ocean rate ex Shanghai to Rotterdam port at last week of May was USD 10174/40’ which was 485% raised compared to same time of 2020. Never put yourself in the wrong imagination that ocean freight has already touched the celling.  There is a large range before going to the end of crazy high transportation cost party.  The post-Covid time after vaccination in Europe and USA has push up the strong demanding for more products from those popular 3C goods, PPE, kitchen wares, home excised equipment, bikes etc. to traveling, camping, party, fashion ware, garments, automobile etc. that people celebrate break the lock-down restriction over a year. Strong purchasing demand reflects to more capacity of international transportation needed.  Even under such crazy sky-high ocean freight, space supply is still far less than capacity demand.

 

The Sino-Europe rail service has been providing consistent certain market share, though less than 1%, other than traditional ocean containers shipping way from China to Europe. More and more clients are interested in giving rail service to as back up method at this high cost in ocean transportation. MSC has been operating new rail service ex VOSTOCHNY port, Russia, to St. Peterburg by collecting products made in China, Korea, Japan to west/north European countries. Containers on Russian rail all the way from East block Asia to West block Europe by 13 days transit time and utilize feeders (Maroc express, Baltic loop 7) to call on Antwerp, Bremerhaven, Rotterdam, etc. which only take additional 4-7 days. Clients have showed tremendous interests in this new rail operation because of large time saving from traditional ocean container shipping time took 41 days ex Shanghai to St. Peterburg down to 24 days.

 

Because of the high ocean rate and ports congestion, it brings up the possibility of new option of promoting Rail service in between Far East Asia and European countries. Same freight rate but more reliable and faster transit time.    

Get a Quote Go Top