In 2011, China inaugurated the launch of a railway line connecting China to Europe, named "China - Europe Railway Express". This project, at the center of the Belt and Road Initiative, offers a new transport alternative to importers: rail freight. Encouraged by the instability of sea and air freight during the pandemic, rail freight has developed considerably in recent years, and is now enjoying growing success.
In this article, we will see the advantages of rail freight compared to other modes of transport, and the risks it presents.
What are the advantages of rail freight?
The main advantage of rail freight is certainly its ecological character. The train is the method of transportation that emits the least CO2 per tonne of goods transported. It can thus be part of a sustainability approach on the part of businesses wishing to maintain an international supply, while minimizing their environmental impact.
Rail freight is easy to set up, as it is similar to the sea freight. It uses the same incoterms as well as the same types of cargo as sea freight. However, it is much faster. It only takes about 12 days to connect China to Western Europe by rail, compared to around 30 days by sea.
Regarding its cost, it would be about 2.5 times more expensive than sea freight, but much cheaper than air freight, which is another advantage. For goods representing a high added value, as is the case for industrial machinery, high-tech products, or even luxury clothing, it may be interesting to go through rail freight. Train departures are also frequent. In the event that the production of the goods was not completed on time, you could thus consider shipping the remainder by train at a cost twice as low as by air.
Finally, sea freight is a more reliable method of transportation in times of crisis, with fewer delays and stable costs, as the pandemic has shown us. While planes were grounded and boat connections complicated, trains continued to roll, sometimes even carrying medical equipment.
Therefore, rail freight represents a good compromise between sea and air freight, and is often described in this way: twice as fast as the ship, half as expensive as the plane.
What are the risks associated with rail freight?
Rail freight being quite recent, it can present some risks that should not be overlooked. First of all, the goods are more subject to the climatic conditions of the countries through which they pass. These countries are Russia, Belarus, Kazakhstan, Poland and others, which can experience extreme temperatures in winter. If the goods you import suffer very badly from the cold, rail freight is not necessarily suitable.
The other risk is related to the condition of the railways. In some countries, railways are quite old, and may therefore have suffered all kinds of degradation over time, due to the weather, for example. This may eventually cause trains to slow down which will inevitably impact supply times.
In conclusion, rail freight, which was initially used by large multinationals, is now used by more and more small and medium-sized businesses. Indeed, it has many advantages, including its very low environmental impact, which is a major challenge for our societies.
Thus, in the coming years, rail freight will certainly increase at the expense of other modes of transport.
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