IRON SILK ROAD DRAGON SERVICE - Import from China via train with Sogedim

All the advantages of IRON SILK ROAD DRAGON SERVICE inside the article

Growing rail freight imports to Europe from China along the Silk Road

According to local customs authorities, eastern China saw a sharp increase in exports via the train service that has connected it to Europe in the first seven months of 2021.

According to ANSA-XINHUA data, the freight forwarding service linking Central Asian provinces to cities in Europe resulted in a 130.7% year-on-year increase in imports between January and July 202, as claimed by Hangzhou Customs.

Imports from China has grown primarily due to the great extension of the railway network and infrastructure covering more parts of Central Asia and Europe.

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The new Sogedim train service will barrel your business along the Silk Road

Demand for rail freight imports from China is growing, particularly in Italy, due to the general increase in sea transport costs, with container freight rates rocketing. The Fbx index for a container from China to the Mediterranean has risen from $1,767 to $12,301, +600% in one year.

Compare here the increase in container costs over the years (source: Freightos and Reuters)

Confronto costi container 2016-2020 - Sogedim

The freight market – especially the container market – has rocketed back to life after a drop of around 20% in global freight capacity between April and June 2020 due to the impact of the Covid-19 pandemic. The transportation cost of a 40-foot container between Shanghai and Genoa has soared by 317% (Assarmatori data), and the average composite index measured by the World Container Index has risen to $5,122, an increase of $3,350 over the last five-year average of $1,773 (data as of early May 2021).

In concomitance with the increase in imports from China, there has been a drastic reduction in the space that can be loaded on ships, with a consequently reduction of monthly trips from an average of 4 to 3. Congested trading ports worldwide, Italian ports blocked by anti-green pass protesters, low cargo capacity by air are the causes of a general disruption in the trade between Italy and China from many sides. The bottom line is that it will take time for the system to overcome the breakdowns and difficulties from COVID-19.

Another adverse factor is the weather, which has wreaked havoc in South-East Asia especially: Typhoon Chanthu (Cat5 Atlantic Strength) severely affected port operations in Taiwan and China in September 2021, whose interruption took place at the same time as other devastating tropical storms in Vietnam.

Freight shipping by train from the East becomes the perfect solution for companies interested in importing goods from China to Italy, due to the container shortage that has plagued the Chinese economy with the resumption of the pandemic last year.
The trade revival led to very high demand for Chinese products from all over the world with consequent misalignment of the import-export balance, leading to very long waiting times for containers, currently unobtainable in China, and several consequences for international trade.

Traffic congestion on all Eastern European hubs, together with day-long container stoppages and panic-stricken Italian companies, are not the only gaps: also a weak truck transport due to a shortage of drivers contributes to the increasing demand for an efficient rail service.

The hardcore of the Italian industry relies on quality goods, whose high production costs justify the high added value. However, burdening companies with additional transport costs would increase the risk of market share losses.
However, dealing with a global logistics operator in time allows the anticipation of these problems by correctly planning international trade and customs operations and reducing the costs of importing from China by train through the use of a PREMIUM rail transport service. Sogedim offers many years of consolidated experience to help Italian companies unravel the world of imports and exports with competitive solutions.

Importing from China by train: the need of Sogeim to offer a winning and competitive express service by train was born

An express import service from China by train was set up to cope with a thorny situation.

IRON SILK ROAD DRAGON SERVICE is the name of the new freight transport service offered by Sogedim to companies with traffic in China. Thanks to the efficient combination of our road and rail services, goods will reach any destination on time, with significantly reduced transit times compared to road and sea.

RON SILK ROAD DRAGON SERVICE: technical characteristics

DEPARTURES – IMPORT CHINA TRAIN

Cut off: Friday for departure on Tuesday.
T/T: 30-35 days.
Weekly departures for groupage (LCL) by train.
Tailor-made solutions for all types of goods, except ADR and temperature controlled.

A transit time of 30-35 days from the terminal in Zhengzhou to our terminal in Mesero [MI] and the availability of containers with GPS tracking devices will ensure rapidity and maximum traceability of the shipments.

A dedicated staff will monitor the shipments at every stage of transport, from collection to delivery to your warehouse.

For your import from China request now IRON SILK ROAD DRAGON SERVICE from Sogedim

If you are a company used to trading goods with China, you have probably received a proposal for rail transport from Chinese suppliers. You will probably be concerned about the expected timeframe, which is generally very extended.

With Sogedim, you are guaranteed a winning transport experience by relying on a leading freight forwarder in Italy and worldwide! Choose a functional and secure service.

Grow your business today

In 2021, in addition to raw materials and agricultural products, the overseas team found high demand for mechanical products, consumer goods, and cross-border e-commerce items in inbound convoys. Useful data for analysis on the framework of the most demanded commodity categories in imports from China can be found here.

Product composition of Italian imports from China

Product composition of Italian imports from China

Main products imported from China

Main products imported from China 2020

Rail freight: sustainable transport by rail

The future is becoming intermodal with regard to the green transition in transport. Of all the types of freight transport, rail is the most environmentally friendly mode for medium to long distances.

With only 44 grams of CO2 produced per km, the train beats both aircraft (140 grams of CO2 per km) and trucks (158 grams of CO2 per km). Most of our customers prefer to rail-ship because trains are cleaner and more economical than other means of transport such as lorries, planes, and ships.

As a certified freight forwarder, Sogedim operates on the overseas transport market to the highest standards.

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Sogedim operates in the overseas transport market to the highest standards as a certified freight forwarder.