Freight Flows from China to Europe and Russia Are Redistributed by Modes of Transport

Amid sanctions and the search for alternative supply chains, market participants are talking about the difficulties with the existing rail freight routes from China via Russia.

As more and more companies from Europe choose to avoid rail and road routes through the Russian Federation, the volume of sea freight is increasing. Freights from China to Europe are now going through the Suez Canal.

The cargo volume from China to Russia is shifting from air and sea transportation to rail and road routes as the European airlines have limited transportation from China to Russia, while 6 of the 11 global shipping companies have suspended cargo bookings to Russian ports or have limited their work.

At the same time, market participants see a decrease in rail rates. For example, the rail freight rate from China to Russia was $12-13.000 per FEU in February. In March, it was about $8.0000.