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Rail service market updates | December 2021

According to statistics, the number of freight trains running between China and Europe in 2020 has increased 15 times compared to 2015, reaching the number of more than 12,000 trains last year. In 2021, a further increase was recorded and the CRE (China Railway Express) experienced even greater demand in times of the pandemic due to a lack of sea and air freight capacity. However, the pandemic impact was also evident on Rail Service connections between China and Europe.

• Current Situation and Review 2021

As experienced during the year, the situation remains challenging. The shortage of container equipment and increased slot restrictions, comparable to the sea freight market, have also become problematic for rail service. In addition, pandemic regulations as well as weather conditions have led to backlogs at border crossings. The rates are increased, but stable.

• Outlook 2022

The situation will remain challenging until Chinese New Year, but it is expected that the slot management setup will improve thereafter. Overall, the demand on capacity will continue to grow significantly in 2022.

DACHSER offers reliable multimodal rail services with an extensive coverage, connecting economic centers of major importance in China and Europe. Via the North Corridor, the so-called Trans-Siberian Route, DACHSER connects Hamburg, Warsaw, Vienna and Bratislava with the Chinese main terminal cities like Changchun, Shenyang, and Suzhou. To and from Duisburg, Hamburg, Neuss, Ludwigshafen, Vienna, Bratislava and Warsaw, DACHSER serves the West Corridor, also known as New Silk Road, to the Chinese hinterland areas of Xi'an, Chengdu, Chongqing and Zhengzhou.

Not only Block Trains but also Full Container Load (FCL) service is possible on this service, as well as Less-Than-Container-Load (LCL) which includes Consolidation Container Services (LCL-LCL) and Customer Consolidations (LCL-FCL).​​​​​​​

Should you require any other departure terminals and/or destinations like the ones mentioned above or some more detailed information on Rail Services, your DACHSER contact will be glad to assist.

DACHSER continues charter flights in May

In addition to charters between Asia and Europe, the logistics provider will organize further transpacific flights to cover the North and South American markets. One such change is the addition of the new Shanghai—Los Angeles route.

APAC countries signed world's largest free trade agreement

On November 15, 2020, leaders from 15 Asia Pacific nations came to an agreement to form a free trade bloc under the Regional Comprehensive Economic Partnership (RCEP). The agreement is intended to facilitate trades among the member countries by removing tariffs and stimulate the economy amid the COVID-19 pandemic.

Main points at a glance:

• RCEP is a free trade agreement in the Asia-Pacific region.
• Fifteen countries signed the agreement including Australia, Brunei, Cambodia, China,  Indonesia, Japan, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, South Korea, Thailand, and Vietnam.
• With the participation of the 15 countries, they have formed the world's largest free trade zone, covering about 30% of the world's population and nearly 30% of global GDP.
• China’s presence notably increases the impact of the agreement and boosts the total GDP of the RCEP member countries.
• India did not join the partnership over concerns that cheap import products might pose a harm to local producers.
• The new free trade zone is bigger than the US-Mexico-Canada Agreement (USMCA) and the European Union.
• The RCEP will reduce taxes on most goods over a 20-year period, streamline customs procedures, regulates the field of intellectual property and digital trade and replace a number of bilateral trade agreements in the region with one set of rules.
• Some benefits are expected to be seen in 2021 once participate nations complete their domestic ratification procedures.

What does it mean to the global supply chain?

• The RCEP is expected to eliminate a range of tariffs and quotas on most of the goods traded within the region over a 20-year period.
• The "rules of origin” may have the biggest impact. Under RCEP, parts from any member nation would be treated equally, this gives companies in RCEP member countries an incentive to look for supplier within the region.
• Many of the RCEP member countries already have bilateral free trade agreements between each other, RCEP would streamline the various overlapping preferential terms. This reduces complexity and reduce costs for businesses.
• China, Japan and South Korea are the traditional key players for electronics, automotive, textiles and garments industries, having them in the RCEP would ensure supply chain stability to ASEAN countries.
• It gives an incentive for companies to look for supplier within the RCEP member countries, thereby laying the foundation for enabling an accelerated GDP growth within the region.

As RCEP will further fuel the ongoing manufacturing shifts within Asia, it not only affects companies within the member countries but is also relevant to any companies worldwide who have business in the region.

Feel free to reach out to us at dachser.apac-asl@dachser.com to know more about the new free trade agreement. Together we can review your current supply chain locations and identify steps to grasp the greatest benefits under the impact of RCEP.

DACHSER expands Hong Kong–Europe charter capacity with long term commitment

DACHSER Air & Sea Logistics is shoring up its charter program between Hong Kong and Europe with a long-term contract and expanded capacity. This ensures the logistics provider will be in a position to offer its customers reliable air freight capacity from January 2022 out to March 2024.