China-to-Europe rail freight rates surge as operators explore Red Sea alternatives

Posted on August 16, 2024   |  

China-Europe rail freight volumes grew 11% year-on-year in the first half of 2024, with about 1.23 million TEU transported.

More than 11,400 trains operated between China and Europe in the first six months of 2024, and recent data shows this trend is continuing.

July saw over 1,700 trains making the journey between China and Europe for the third month in a row, with 1,776 trains carrying around 185,000 TEU.

The rise in rail freight volumes is partly due to disruptions in the Red Sea, prompting shippers to find alternative routes and the expansion of rail services by the Chinese government following the Ukraine conflict.

With traditional routes through Russia affected, Chinese operators have shifted to routes through southern Russia and countries like Kazakhstan.

These new routes have been effective, with China Railway’s CR-Urumqi division reporting an 8.2% increase in journeys, reaching 7,746 in the first half of 2024.

Average export rates for Chinese rail services have climbed above $10,000 per TEU, with some rates exceeding $12,000.