China-Europe freight railway of great significance to global logistics stability

A Republic of Korea newspaper recently reported that the conflict in the Red Sea waterway has triggered a global logistics crisis, causing shipping freight charges from the ROK to the European Union to soar by 250 percent in four months. It also said that China won't feel the heat because of its China-Europe freight train channel.

The Red Sea is one of the key shipping routes for trade to Western Europe and the United States. Since November, to show their solidarity with Palestine, Yemen's Houthi militia have repeatedly been attacking vessels in the Red Sea waters, causing many shipping companies to suspend the Red Sea route through the Suez Canal, and take a detour via the Cape of Good Hope.

At a time when major sea lanes are disrupted and global supply chain security is facing challenges, the China-Europe freight railway, which was once attacked by the foreign media as more of a "symbolic" mode of transport, is suddenly in everyone's focus.

Compared with sea transport, the most prominent advantage of the China-Europe freight train route is stability. Maersk's chief executive has warned of the widespread negative consequences of circumnavigating the Cape of Good Hope to global supply chains and the global economy. Whether it is because of the Houthi attacks in the Red Sea, drought in the Panama Canal, or potential conflict near the Strait of Malacca, they all expose the vulnerability of sea lanes. In contrast, the trans-Eurasian railway transport is more reliable.

According to a report released by the United Nations Conference on Trade and Development in February, shipping fees from Shanghai to Europe via the Suez Canal have increased by about three times since November. Compared with China-Europe freight trains, the price advantage of sea freight is no longer obvious. CITIC Futures estimates that compared with the Suez Canal, the Cape of Good Hope route will lead to a 26 percent and 51 percent increase in journey times from East Asia to Europe and from East Asia to the Mediterranean, respectively.

As a major artery for high-quality connectivity under the Belt and Road Initiative, China-Europe express trains have reached 219 cities in 25 European countries. It has opened up a new land transport corridor and a new bridge for economic and trade cooperation in Eurasia, and built a resilient international logistics supply chain, injecting new impetus into the development of the Eurasian continent. Under the current security situation, the emerging advantages of China-Europe freight trains fully demonstrate that the Belt and Road Initiative conforms to the historical trend of economic globalization, the call for the reform of the global governance system, and the interests of people around the world.