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China to Europe Rail Strategy Struggling - Due to Deadheading |
Материал из категории News of logistics (in English) |
28.11.2015 21:21 |
In 2011, technology giant HP pioneered the use of rail transport to move goods from inland Chinese manufacturing sites to European markets. Now, as rail services is being developed across a number of Chinese cities, the idea is facing operational challenges in one of the more common issues in transport generally: deadheading. The idea of moving goods from inland Chinese factories to The early success by HP eventually led to China's vision to create a Silk Road Economic Belt as part of its broad "One Belt, One Road" initiative, in this case to stimulate rail trade between Chinese inland cities and Europe. And as usual, But as anyone shipping goods by truck into Florida knows, balancing inbound and outbound volumes into a high demand market isn't easy, and that is the challenge right now - and maybe for the long term - with the this part of the Silk Road strategy. Naturally enough, there is a lot more demand for goods going into Europe than there is European exports back into "Only single-digit [numbers of] containers return every month so we can't even fill a train," Gong Qinghua, a sales director at a freight forwarder operating between Yiwu, an east China city famous for producing gift items, and Madrid in Spain, told the South China Morning Post last week. This compares to eight fully booked trains that head to Further exacerbating the situation is the fact the Chinese exports to In addition, many European companies - for now at least - are leery of putting their goods on trains run by the Chinese government. "It is a difficult sale for Chinese companies to convince a European freight forwarder to bring products on their train," Darryl Hadaway, a consultant for the According to China Railway Corporation, in the first half of 2015 there were 50 return train loads, compared to 200 going from And many of those return trains head back to But as usual, the Chinese government will be patient on this situation. "Silk Road is a long-term strategy for There is certainly huge upside potential. In 2014, trade volume between But it is important to keep in mind that the "Using a biological metaphor, the growth of these connections is like angiogenesis in the human body. First the vessels grow, then logistics companies provide the blood circulation - and development of organs follows,"George Yeo, chairman of Kerry Logistics and Foreign Minister of Singapore, recently wrote.
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