The main rail option from China for European importers is via the so-called “middle corridor,” but as demand steadily increases, so too are the many chokepoints along the route.
China’s rolling COVID-19 lockdowns and significant disruption linked to Russia’s invasion of Ukraine have left the global air freight market to face a difficult second half of the year.
Demand for long-haul ro/ro services is strong, but COVID lockdowns and growing global economic uncertainties are constraining vehicle volumes, executives say.
As the global energy transition gains momentum, a “mismatched” market will become more complex, partitioned, and costly, according to Jim Burkhard, head of oil market research at S&P Global.
Shippers and their service providers exiting the China-Europe rail route through Russia has slammed the brakes on a trade lane that expanded by almost 30 percent in 2021.
Import volume from China has been increasing since late last year, and combined with the severely disrupted supply chains is leading to a deteriorating cargo storage situation across Europe.
For China-Europe rail shippers, there are precious few alternatives to the northern corridor that passes through Russia and Belarus and handles almost all the volume moved on the land bridge.
The ever-widening effects of Russia’s war on Ukraine and China’s COVID-19 lockdowns are placing mounting pressure on an already stressed air cargo sector.