The Rail network from China and Europe is imposing a blockage for the recent supply chain products. Last year the container was about 1.46 million, recent blockage predicts to impact the growth rate. The logistics companies exposed some helpful solutions.
The railway linking from Western Europe to Eastern China carries more containers than a million, from 6,000 plus miles. These railway links from Western Europe to Eastern China through Russia are finding some recent routes from the sea, which will build the cost and threats for the global supply chain.
Moscow raising war in Ukraine, the exporters and logistics firms transporting products such as cars, laptops, auto parts, and smartphones are choosing to avoid land routes through Russia. They have observed security risks and payment obstacles that are derived from sanctions. Sanction is mounting in the observance that customers in Europe can boycott Russian rail products and goods.
China and Europe route carries the product worth about $75 billion
Conflict in the supply chain got exposed
This supply chain conflict is creating a blockage to some of the biggest ports, which is proceeding with the pressure on the global supply chain. It is still becoming a stumbling block from the pandemic period that have caused manpower shortages. A combination of sea-air solutions can help automakers and high-tech electronics manufacturers to stop more disruption which can lead to an escalation in costs.
Transportation Analyst at Shinyoung Securities Co mentions, in this time of period the crucial need for companies is to get goods and deliveries on time, despite the transport cost raise higher. The production and goods should be continued to deliver.
In march the export volume on trains is heading to Europe, the ports of Dalian have reduced in the higher amount. The shipment average growth raised to 70% in the two months in a year as per people’s daily reports. China and Europe rail links have established the silk road project by President Xi Jinping’s , which later transform into the “Belt and Road”. It is a mix of foreign policy and economic strategy to expand and broaden the influence across the other continents.
Railways route of china to Europe imposed blockage which led to heavy impact on current supply chain.
Rail links have stretched the location from China, Kazakhstan, Russia, Belarus, and Chinese, it is beyond connected to commercial centers like Zhengzhou in Henan, Yiwu in Zhejian province, Xi’an in Shaanxi, and Wuhan in Hubei to European cities such as Minsk, Hamburg, Warsaw, and Munich. Consumer electronic, autos are wood-based products and petrochemicals which can be an obstacle for a ride.
Through last year’s records, trains carried the container of about 1.46 million. It carries the product worth about $75 billion between China and European routes, a total of a 4% trade between the two sides.
IKEA, Toyota Motor Corp, and Dell Technologies have blocked their sales and operation in Russia. 500 meters long rail has not stopped rail lines in Ukraine for supplying goods, it is supplied in the routed between Xi’an and Kalinigrad, Russian city to Poland and Lithuania.
Balzereit exposes that companies who are shutting their routes are looking for sea freight transport and air freight as their safer option. It requires to travel with the same route and can lead to more time and higher cost for their products and goods delivery.