China-Europe Express: How can rail transport become a new option to balance cost and timeliness?

Against the backdrop of global supply chain diversification, China-Europe Express, as a land transport channel connecting China and Europe, has gradually become a new option for international trade with its unique cost and timeliness advantages. Compared with traditional sea and air transport, rail transport has found a balance between the two, providing a more flexible solution for the global logistics system.

  1. The rise and development of China-Europe Express
    Since the first China-Europe Express was opened in 2011, it has formed a huge network covering Europe, Central Asia and Southeast Asia. As of 2023, China-Europe Express will have operated more than 70,000 trains, reaching more than 200 cities in 25 European countries, becoming an important logistics support for the “Belt and Road” initiative.
  2. Cost and timeliness advantages of rail transport
    Moderate cost, more competitive than air transport

Air transport is fast, but expensive, suitable for high value-added goods; sea transport has low costs, but a long transportation cycle (about 40-50 days).

The transportation cost of China-Europe Express is about 1/3 of that of air transport, while the timeliness is only 1/2 of that of sea transport (12-20 days), making it a compromise choice for many companies.

Stable timeliness, less affected by external factors

Sea transport is easily affected by factors such as port congestion and weather, while rail transport is less restricted by natural conditions and the operation of the train is relatively stable.

During the epidemic, China-Europe Express has become an important channel to ensure the China-Europe supply chain with its stable transportation capacity.

Policy support and improved infrastructure

China has strengthened cooperation with countries along the route to optimize customs clearance efficiency, such as the “Guantietong” project to improve cross-border convenience.

China-Europe Express adopts the “assembly and transportation” model to reduce corporate logistics costs and improve transportation efficiency.

  1. Applicable scenarios and market potential
    High-value goods such as electronic products, auto parts

For products such as laptops and smart phones, companies that are sensitive to timeliness but cannot afford high air transport costs are more inclined to choose railways.

Cross-border e-commerce and regional trade

As the China-Europe e-commerce market expands, rail transport provides cross-border e-commerce with a faster and more economical logistics solution than sea transport.

Sustainable development under the trend of green logistics

The carbon emissions of rail transport are much lower than air transport, and even better than sea transport, which is in line with the development direction of the global low-carbon supply chain.

IV. Challenges and future prospects
Although the China-Europe Express has developed rapidly, it still faces some challenges, such as insufficient return cargo and tight capacity on some routes. In the future, through digitalization (such as blockchain to improve cargo tracking capabilities), multimodal transport (such as “sea + rail” connection) and market-refined operations, the China-Europe Express is expected to further enhance its competitiveness and become one of the core hubs of the global supply chain.

Conclusion
The successful practice of the China-Europe Express has proved that rail transport has found a new balance between cost and timeliness, providing a more efficient and sustainable logistics option for international trade. Against the backdrop of the reconstruction of the global supply chain, the China-Europe Express is not only a transportation channel, but also a new link connecting the Asian and European economies, with unlimited potential in the future.

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