Shanghai, China, has launched the first freight train to Europe in 2024, with the total value of the loaded goods exceeding 10 million yuan (approximately 1.4 million dollars). The freight train carried 100 standard twenty-foot equivalent unit (TEU) containers, including air conditioners and home appliances, with a total weight of over 1,000 tons. Shanghai initiated its first freight train service to Europe in September 2021, and in 2023, it handled 100 freight train trips, carrying more than 10,000 TEU of goods.
The trade relations between Shanghai and Europe have been significantly enhanced by the establishment of China-Europe rail freight services. These services have become increasingly vital, especially amid the disruptions caused by the COVID-19 pandemic. The shift from sea to rail freight has been driven by the need for more reliable and faster delivery of goods, particularly in light of challenges faced at major ports like Shanghai.
Shanghai’s trade with the European Union (EU) is substantial. From January to July 2022, the imports and exports between Shanghai and the EU reached approximately $65.8 billion, accounting for nearly 20% of Shanghai’s total trade value during that period. While exports from Shanghai to the EU saw a significant increase, imports from the EU experienced a slight decrease. Notably, Germany and France are among the key trading partners in the EU for Shanghai, with substantial trade volumes being recorded with these countries.
The China-Europe rail freight service, particularly between Shanghai and Germany’s Hamburg, has gained a reputation for its efficiency, including time-saving and fast customs clearance processes. This service is not just beneficial for transporting general cargo but has also been pivotal for high-end products and equipment, as demonstrated during events like the China International Import Expo held in Shanghai.
The rail service has played a crucial role in boosting trade among various markets, connecting major hubs across countries like Poland, Belarus, Russia, and Kazakhstan. This development is aligned with Shanghai’s ambitions to become a global innovation hub, focusing on industries such as new energy vehicles and high-end equipment.
Despite the advantages of rail freight, sea transport remains the main mode of international trade due to its larger capacity. However, the flexibility and efficiency of rail freight, especially during challenging times like the pandemic, highlight its importance in the global supply chain and trade dynamics.
