Trains and trucks needed for Europe/China supply chain
Coronavirus has disrupted the entire supply chain between Europe and China, but rail cannot be the solution without local Chinese truck drivers, according to the RailFreight Webinar.
This was the common conclusion of the recent RailFreight Webinar. It said: “rail could be the solution, but not without the local truck drivers in China. These are either locked, at home or not permitted just yet to return to work.”
In principle, freight trains are permitted to depart and arrive in all localities but Hubei, where the outbreak of the coronavirus started and is most severe. But, according to the webinar: “it is not a matter of running trains alone. The production of industrialised goods has stopped and the cargo cannot be delivered to the terminal, or picked up when sent to China.”
Igor Tambaca from Rail Cargo Bridge said: “According to the latest Bluewater Reporting data, container lines are expected to withdraw cumulatively over 1.3 million Teus of head haul capacity on the Asia-Europe and transpacific tradelanes. This equates to 58 blank sailings from Asia to Europe (compared with just 25 in the same period last year), and 59 void voyages from Asia to North America against 43 in Q1 19.”
A wave of cargo originally shipped by sea or air freight is expected to be put on rails after today (February 10), when the country is expected to resume work after the Chinese New Year.
Wubbo-Mossing Holsteijn, representing Nunner Logistics, added “In April and May, especially in vital industries such as automotive with its just-in-time deliveries, we see a pressure on rail capacity. Companies will try to make up for lost time.”
Asked if there is enough capacity to respond to the spillover from sea and air freight, Jacky Yan, Vice President and Head of Rail & Intermodal at Chinatrans International Limited, said: “I am afraid not. Whoever is willing to pay the highest price is likely to get a slot on the train.”
For more information visit www.railfreight.com
10th February 2020
