Nippon Express has announced plans to doublerail freight services connecting China-Europe as part of the company’s planned modal shift from air freight to rail.
The outbreak of COVID-19 notably reduced air freight services. Subsequently, prices concerning air cargo transport reached a new high. Compared to rail freight services, air freight services used to be four times more expensive for a five-ton shipment. However, these last few months, the price difference has increased, now being ten times more.
With the prices reaching unprecedented levels, Nippon Express decided that it would be optimal to turn towards the rail sector. Since 2015, with Eurasia Train Direct, the company has been connecting various Chinese cities with European ones, using the China Railway Express. The collaboration with a train operator from Xi’an, allows the logistics company to operate around 3,000 round trips to Europe per year. Estimations say that with the company turning its attention to rail services, these round trips to Europe will reach the number of 5,000 per year.