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China-Europe rail service demand slows as congestion brings delay

Author: Posttime:2021-10-15 08:01:10

CHINA-EUROPE rail freight demand has dropped recently, largely due to congestion, China's Golden Week holiday, and power shortages impacting factory production, reports London's Loadstar.

Congestion in Poland, as well as Covid cases at Khorgos, are causing long delays, according to Chengdu-based New Silk Road Intermodal (NSR).
"New cases in Khorgos City has led to the temporary closure of airports and train stations and halted land transport in the Xinjiang autonomous region," said NSR CEO Jacky Yan.
"As per previous cases in Alashankou, it's expected that a tightened quarantine process will be implemented, leading to temporary closure of transloading of cross-border trucks and a slower train crossings," said Mr Yan.
Border crossings at Khorgos were taking 12 to 15 days on average, while crossings at Alashankou were taking five-to-seven days.
"There's an average delay of ten days and a maximum delay of 16 days, with more than 500 containers waiting at the station and slow loading operations. At the same time, the maintenance of the Poland to Germany rail lines has exacerbated the congestion of the whole section. The longest delays are in Kaliningrad, where a large number of containers are waiting a week for loading," said Mr Yan.
Volumes increased 56 per cent in 2020, to 1.14 million TEU, while this year's first-half volumes were up 52 per cent, to 707,000 TEU.
"Second, because of the power shortages in China, there is less output - more than 20 provinces in China successively issued power cut measures and many production and processing enterprises in exports have been affected." said Mr Yan.
 
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