Thursday, July 23, 2020

"China-Europe rail freight hits the buffers as rocketing demand brings congestion"

From The Loadstar, July 21:

Record-breaking volumes have caused congestion and lengthy delays on China-Europe rail freight services.
According to Norman Global Logistics (NGL), June and July have been “extremely busy” for Silk Road rail services, putting pressure on infrastructure and increasing journey times.
Rob Foster, NGL’s business development manager for central and north China, said: “Major congestion is taking place on most services at the China-Kazakhstan border [Alashankou and Khorgos] which has caused a huge bottleneck.”

Indeed, delays at the Khorgos transhipment hub, where containers must be transloaded onto wide-gauge wagons for the journey through central Asia, have created a ripple effect, impacting terminals in China and Europe.

NGL said Xian, Wuhan, Ganzhou and Xiamen had stopped accepting any new orders to clear the backlogs, expected to last until the end of this week, while Yiwu and Chengdu have resorted to halving departures to twice a week. Zhengzhou diverted all trains bound for Liege, Munich, and Milan to Erenhot, causing an three-to-five-day delay.

“In some locations like Wuhan, for example, we have experienced delays in shipments not departing for up to two or three weeks later than expected due to the bottleneck at the border,” Mr Foster told The Loadstar....