Create a new channel for "going overseas" and launch China-Europe freight trains with new energy vehicles in many places

On December 18, the China-Europe freight train loaded with 55 containers and 110 new energy vehicles departed from Harbin International Container Center Station. This is another China-Europe freight train line for domestically produced new energy commercial vehicles opened in Heilongjiang Province this year, following the opening of the China-Europe freight train line for domestic commercial vehicles and second-hand cars.

Since the beginning of this year, boosted by the demand for new energy vehicles going overseas, special China-Europe freight trains for new energy vehicles have been launched in many places, becoming a new channel for cars to "go overseas". "From January to November this year, the shipment of new energy vehicles through China-Europe freight trains showed an increasing trend." said Yu Wujun, general manager of the Shanghai Branch of China Railway Container Company.

China-Europe express new energy vehicle special trains launched in many places

On December 18, a China-Europe train loaded with 110 Great Wall Mocha new energy vehicles departed from the Tianjin Xingang North Container Center Station in the Tianjin Dongjiang Comprehensive Free Trade Zone. The train will leave the country through the Erenhot Port and arrive after a journey of about 18 days. Moscow Krest station. This is the first time that the China-Europe Railway Express (Tianjin) has specially transported Chinese-made new energy vehicles for export to Europe.

Previously, a China-Europe freight train JSQ commercial vehicle train departed from Banlantan Station in Yongchuan District, Chongqing and went directly to Europe. The goods on board were 232 Great Wall Motors manufactured in Yongchuan, with a total value of approximately 42 million yuan. It is reported that in the first 11 months of this year, Chongqing companies exported 20,771 cars using China-Europe freight train "cage cars", with a value of 2.186 billion yuan. As Chongqing's automobile export volume increases, at least one special car train is shipped overseas via the China-Europe Railway Express every day.

In January this year, the National Railway Administration, the Ministry of Industry and Information Technology, and China State Railway Group Co., Ltd. issued the "Opinions on Supporting the Railway Transportation of New Energy Commodity Vehicles and Serving the Development of the New Energy Vehicle Industry." The document proposes that railway transportation enterprises are encouraged to carry out railway transportation business of new energy commodity automobiles. New energy commodity automobiles transported by railway are not managed as dangerous goods, and the transportation parties shall handle the transportation in accordance with the requirements of the notice.

In September 2022, China Railway Group announced that it would relax restrictions on rail transportation of new energy vehicles. With advantages such as fast delivery and good stability, China-Europe freight trains have gradually attracted the attention of car companies.

New options under transportation capacity shortage

Car exports are surging but transport ship capacity is growing slowly, which is why China-Europe freight trains are favored for car transport this year.

According to the "Car Ship Trade and Maritime Transport in 2023" report released by Clarksons, a shipping consulting agency, global car shipping volume will increase by 17% year-on-year in 2023, reaching 23.7 million vehicles, becoming the fastest growing year for sea shipping volume, surpassing 2018 of 21.5 million vehicles.

At the same time, the number of global car carriers (PCTC) reached 760, with a total transport capacity of 4.02 million CEU, an increase of only 2% from 2019. Car transportation rental costs rose 10% year-on-year to a record $115,000 per day, which is seven times the 2019 average.

CMB Research believes that due to the small number of new ship orders before 2020 and the long new ship construction cycle, shipping capacity will still be in short supply before 2024.

Previously, many cargo owners chose "bulk-to-consolidation", that is, instead of using car carriers, they switched to shipping containers for transportation. A staff member of the Shanghai Port told reporters that container space is relatively abundant this year, and there are more foreign ports of call, which can shorten the arrival time of cars. However, the container transportation volume is small and the price is higher than that of ro-ro ships. In addition, container transportation electric vehicles are transported according to Class 9 dangerous goods, and the procedures are more cumbersome.

Opening up new channels for cars to “go overseas”

"The China-Europe train transport vehicles have the advantages of safety and stability, high timeliness and diversified transportation services. Compared with sea transportation, it runs faster. It usually only takes about 20 days from the Yangtze River Delta region to Europe and about a week to Laos." Yu Wujun explain.

Yu Wujun said that compared with ro-ro ships, China-Europe trains can provide enterprises with customized automobile transportation solutions to meet the requirements of special shipping directions. For some overseas urgent orders, the China-Europe train transportation time is also faster.