China-Europe rail freight: A vital bridge reshaping global trade
By Hasan Muhammad
Rail traffic across the vast expanse of Eurasia is surging, fueled by strengthened international cooperation and transformative upgrades to transport infrastructure. In a year marked by global uncertainties, the steel arteries connecting China and Europe have proven remarkably resilient.
From January through September, the freight trains traversing this historic corridor completed 14,689 round trips, a 13 percent increase from the previous year. These locomotives carried an astonishing 1.57 million TEU (twenty-foot equivalent units) of goods-an 11 percent uptick year-on-year - further underscoring the vitality of this trade route. On average, more than 50 trains departed daily during the year's first seven months, knitting together 224 cities across 25 European countries and over 100 cities in 11 Asian nations. The engine behind this growth? Robust trade between China and the European Union. By 2023, the economic exchange between these regions reached a staggering €739 billion ($783 billion) in imports and exports, accounting for 15 percent of the EU’s total trade-a figure that nearly rivals the 17 percent trade share with the United States.
Two key dynamics are propelling the growth of China-Europe freight train transportation, reshaping global trade flows. The first is cost. By August, shipping a 40-foot container from China to Poland by rail was less than half the cost of sea freight. The second factor is speed. A freight train completes the journey in roughly nine days, compared to the 35 to 40 days required by sea routes. The ripple effects of the Red Sea conflict have only amplified rail’s advantages. Shipping via the Suez Canal has plummeted by 67 percent this year, driving up sea freight rates. Between January and mid-August, the cost of transporting a forty-foot container from Shanghai to Rotterdam surged by 78 percent, reaching $7,961, according to the Drewry World Container Composite Index.
This revival of the Silk Road’s modern counterpart offers a potent reminder of how shared enterprise can transcend borders and politics. Amid a world increasingly divided, these railways symbolize not just commerce but the enduring potential for connection.
From 2016 to 2023, the annual number of freight train trips ballooned from 1,702 to over 17,000-a nearly tenfold increase, with an annual growth rate of 39.5 percent. What began as a route dominated by laptops and printers has evolved into a sprawling network carrying over 50,000 types of goods - from automobiles to daily necessities, chemicals to machinery. For Chinese producers, it provides an indispensable gateway to global markets. For international traders, it offers a direct line into the massive Chinese market. The implications are profound: smoother supply chains, expanded market access, and a new model for cross-continental trade.
Following the inaugural China-Central Asia Summit in Xi’an last year, freight routes have also grown more inclusive, connecting Central Asian nations eager to deepen their economic ties with China. What once took 90 months to dispatch 10,000 trains now takes a mere seven months, according to China State Railway Group Co. This acceleration reflects a surge in trade across Central Asia, Europe, and beyond. The rail network's expansion has profoundly reshaped China's inland regions, long overshadowed by the economic dominance of its coastal areas.
Beyond its domestic impact, the railway serves as a lifeline for global supply chains. It has become a linchpin in advancing China’s Belt and Road Initiative (BRI), fostering high-quality development while promoting economic integration between China and Europe. At a time when fractured alliances and protectionist policies threaten the fabric of global commerce, this rail corridor counters with resilience, shortening distances and lowering barriers.
Editor's Note: The writer is a freelance columnist on international affairs based in Karachi, Pakistan. The article reflects the author's opinions and not necessarily the views of China Economic Net.
(Editor:Fu Bo)