BUSINESS

China-Europe Rail Freight Slump Continues Amid Russian Headwinds

Published: Apr. 21, 2025 8:12 p.m. GMT+8

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A China-Europe Express train departs from a railway station in Shanghai on Saturday. Photo: Xinhua

China-Europe rail freight declined in March, extending a slump since January, triggered largely by trade headwinds and policy changes in Russia, a major transit hub.

In March, the number of China-Europe freight train trips fell 1.3% year-on-year to 1,592, while cargo volume dropped 7% to 164,800 twenty-foot equivalent units (TEUs), according to data from China State Railway Group Co. Ltd. This continued the downward trend seen in the previous two months, although the rates of decline in both trips and volume did ease in March compared with the double-digit drops recorded in February.

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China-Europe rail freight trips fell 6.4% and cargo volume dropped 9.7% year-on-year in Q1 2024, with March trips down 1.3% and volume down 7%.
The decline is linked to trade headwinds and Russian policy changes, including tighter auto import rules and expanded bans on dual-use goods, resulting in over 1,000 containers detained.
Freight rates fell from $9,000 to $4,500 per 40-foot container since October 2024, with a modest recovery expected no earlier than mid-2025.

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Who’s Who

China State Railway Group Co. Ltd.: China State Railway Group Co. Ltd. is the official operator responsible for managing China’s railway system, including collecting and publishing data on China-Europe freight train operations. The company’s statistics are used as an industry benchmark, such as reporting the number of freight train trips and cargo volumes transported between China and Europe.

BFE International Freight Forwarding (Suzhou) Co. Ltd.: BFE International Freight Forwarding (Suzhou) Co. Ltd. is a logistics company that has observed declining China-to-Europe rail freight demand since late 2023. According to its general manager, Yang Jie, falling demand and Russian policy changes led to freight rate drops from $9,000 per 40-foot container in October 2024 to $4,500. The company saw a slight rebound in March 2024 after regulatory adjustments but expects only a modest short-term recovery.

CMC Logistics (Hunan) Co. Ltd.: CMC Logistics (Hunan) Co. Ltd. is a logistics company mentioned in the article as having been affected by Russia's new directive expanding its list of banned dual-use goods. The company experienced the detention of 70 containers due to Russia seizing Europe-bound goods in late 2024, according to its general manager Liu Zan.

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