Supply Chain Christmas

Supply chain crunch threatens the holiday wish lists.

The supply chain Grinch is likely to steal Christmas – our silver lining: freight trains between China and Europe!

Many factors such as rising prices of raw materials, rising global freight rates and power rationing have affected the export of Christmas products of foreign trade enterprises. Affected by the continuous spread of the global pandemic, the rise in the price of international bulk commodities, the structural imbalance of global transport capacity and other factors, foreign trade enterprises have been plagued by high prices of raw materials, high freight rates and insufficient transport capacity.

It is usually the peak period of domestic Christmas supplies shipment from June to August every year, but considering the problem of shipping this year, overseas customers generally place orders in advance by means of online viewing and signing orders, and some orders have been shipped and delivered earlier than in previous years.

Driven by surging demand from European and Central Asian markets, Hangzhou Customs reported that Zhejiang province has seen strong import growth via the freight train service linking Europe in the first seven months. In the January-July period, the China Railway Express service connecting Jinhua in Zhejiang with cities in Central Asia and Europe handled 26.71 billion yuan worth of goods, up 130.7 percent year-on-year.

“The reality of tight capacity and high freight rates is a global issue. The Ministry of Commerce, in conjunction with the Ministry of Transport and other government branches, has actively taken measures to increase container supply, boost shipping capacity and strengthen international cooperation, ” said the Ministry of Commerce spokesman Gao Feng.

According to SEPP, more Chinese enterprises are shifting their import and export sources to China Railway Express. It saves nearly two thirds of the time compared to sea transportation and saves up to 50% of  the cost compared to air transportation. With relatively short transportation distances, fast speed of the trains, and good are being shipped continuously and steadily even during the ongoing pandemic, it has become the preferred transportation mode for export.

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