Supply Chain Council of European Union | Scceu.org
Freight

First freight train to arrive today on new China-Europe route

The first train on an expanded China-Germany train line will today arrive in Duisburg, Germany, from China’s tech capital, Shenzhen.

freighttrain

Photo: Getty Images

The first train on an expanded China-Germany train line will today arrive in Duisburg, Germany, from China’s tech capital, Shenzhen.

Looking to grow a $206 billion trade relationship, the Belt and Road project sports a shipping time of 18 days, more than twice the speed of sea freight more reliable than airfreight, which has been damaged by COVID-19 airport closures.

Of note, a food shortage in China caused by record flooding and African swine flu has positioned German meat exports to exponentially rise as a result of the expanded rail.

Expect today’s arrival in Duisburg to be lauded as a win for Shenzhen’s burgeoning tech sector by Chinese officials, but it is unlikely to have a noticeable effect on tech exports in the short term. Instead, in the medium-term, expect German exports of meat to sharply rise as China looks to combat a worsening food shortage. In the long run, expect increased rail linkage to allow Germany to further widen its trade surplus with China, evidenced by surging eastbound rail traffic as well as Berlin’s reluctance to run a trade deficit.

Wake up smarter with an assessment of the stories that will make headlines in the next 24 hours. Download The Daily Brief.

Related posts

European Commission calls for conversion to zero-emission vehicles by 2050

scceu

FMC’s newest commissioner dives into role

scceu

Cargo Transit Through Kazakhstan Increases 54 percent Over First Half Year

scceu