First China-U.K. Freight Train Departs as Xi Seeks to Lift Trade
bloomberg.com
bloomberg.com
http://www.forbes.com/sites/wadeshepard/2016/06/28/what-the-...
It make sense for goods that sending them by air is too expensive, but they are too time sensitive to send them by ship. It takes a day by plane, 14 days by train, 45 days by the ship. I would expect in good scenario that train would be somewhat similar popular as air, but nowhere near close volume as by sea.
Rail is 4 times more expensive than by sea. Air is at least 6 times more expensive than rail, but can be even 18 times more expensive if payload is heavy.
Cost of shipping 40′ HC container:
- by sea: $1,600
- by train: $6,800
- by air, light, so you pay for volume: 4.6 USD / kg, 40 ft got volume 67.7 m3 * 143 kg / m3 ~= 9 tons, $41,400
- by air, heavy, so you pay for real weight: 4.6 USD / kg, 40tf can be 27tons, $124,200
Shanghai <-> Gdynia, Poland: http://www.transportchiny.pl/ceny_transportu_z_chin.php
Shanghai <–> Małaszewicze, Poland http://gocargo.pl/czy-transport-koleja-z-chin-jest-oplacalny...
By Air: http://www.chinaimportal.com/blog/air-freight-import-china-g...
Container: https://www.searates.com/reference/equipment/3/
Excuse me for non-English links, but that was the easiest what I can find.
- Air cargo - 0.8063 kg of CO2 per Ton-Mile
- Truck - 0.1693 kg of CO2 per Ton-Mile
- Train - 0.1048 kg of CO2 per Ton-Mile
- Sea freight - 0.0403 kg of CO2 per Ton-Mile
So I see this competing with air freight, not sea.
https://en.wikipedia.org/wiki/Environmental_impact_of_transp...
Some regulators might start offering incentives in that regard though.
No-one I know in logistics is very worried about cost per container, especially with the massive over capacity in shipping.
When the iPhone launched they brought them by 747, I think this train would have been a viable option.
https://www.theguardian.com/environment/2011/oct/05/melting-...
*There's a northern route that is only open for a portion of the year.
Produce more CO2
Increase Global Warming
Oceans rise
Everything is covered by water
Profit?
:)
I'd think the drag of ships in water vs rail in air would also be far, far greater, but I've never taking fluid mechanics and trains do move a lot faster.
Then again one ship can carry as much as 50 trains or so?
Drag is indeed huge, but so are the ships.
One interesting thing about ships is that drag depends heavily on speed. If fuel efficiency becomes a greater concern, they can go a bit slower to compensate. Of course, that increases other costs....
I know a recreational motorboat is less efficient than a car by a lot, but...scaling.
Oh engineering with so many trade-offs and sad realities. I'm glad I work in a field of rediculous low-hanging fruit.
The only winners would be the goods owners who are winning form short term lower prices - is that enough for a long term business?
Could also be a way to spur growth too. If you need to spend money on something, infrastructure seems like a decent choice.
From this article http://richardtorian.blogspot.com/2012/01/cost-per-ton-mile-..., you can cut the shipping costs by train to a pretty low level.
The gist of all that german garble is that it is about twice the speed of sea freight, measured "door to door", while costing only half as much as air freight, but twice that of sea freight. co² emission is calculated as half of that of sea freight, and 25 times less than air freight. In 2016 they shipped somewhat over 40.000 containers in about 400 trains, which carry about 50 containers per train.
The NYT covered this in 2013 with an interactive feature: http://www.nytimes.com/newsgraphics/2013/07/21/silk-road/ http://www.nytimes.com/2013/07/21/business/global/hauling-ne...
hth
almost forgotten: https://en.wikipedia.org/wiki/Trans-Eurasia_Logistics https://en.wikipedia.org/wiki/Chongqing-Xinjiang-Europe_Rail...
I guess half as much as airfreight means that it's still considerably more expensive than shipping. But for 14 days vs 30-45 days it might well be worth it.
Low value items and very heavy items are currently not viable via airfreight, that's probably where trains can be profitable. If you produce clothes your only options are to either do so in Europe (there's a lot of production in Turkey) and have it close by, or produce in Asia and wait 40 days for every order. Cutting that time for a premium could make a lot of economic sense.
If you suddenly find a particular style/colour of item is popular and selling out it might make sense to get more items shipped via train and have them arrive in 2 weeks.
If you have to put it on a boat and wait 6 weeks you may have missed your chance to sell that item (e.g., people are moving on from summer to autumn clothing, etc.).
The device is manufactured, flashed, and packaged in China, and normally shipped by sea. But now demand has gone up, or production has been slightly delayed, and we need to get devices to customers. Maybe we will run out of stock in 1-2 weeks. We can't really (only) load a container ship and not be able to get devices to customers for a couple of weeks when demand is high. The logistics team then tries to ship limited quantities by air and/or train to bridge the gap until the next container ship arrives.
Hence my (very limited) experience tells me there is definitely a market for something like trains with time and cost in between air freight and container ships.
I think there are a lot of companies willing to pay extra to get it in 18 days vs 27 days.
So its the airfreight cost vs the waiting cost.
[1] https://en.wikipedia.org/wiki/Antonov_An-225_Mriya#Specifica...
That said, I think someone is considering (re)starting production.
While the train can carry about 200 containers, versus 20,000 on a large cargo vessel, the trip takes about half as long as a 30-day sailing between East Asia and northern Europe. That will make rail a competitive option when maritime shipments are held up or miss the booked departure, especially compared with airfreight, which costs twice as much, according to Michael White, operations director at Brunel Shipping, the U.K. booking agent for the service.
I can imagine being in a position where shipments can be ordered 15 days in advance, but where 45 days would be unacceptable. (train vs ship)
If that's the case, you set up your logistics to come by rail, rolling in every 15 days, instead of air and you save a bunch on your shipping.
There's so many variables and volume here, it probably makes perfect sense for a whole lot of businesses.
https://news.ycombinator.com/item?id=13317649
It's just a completely different method of going about arguments.
With such a rail option you'll have an alternative: by default use container vessel then in case of a problem switch to the rail.
That wouldn't make the rail system a sustainable business because it would only make money when there are problems with sea freight. To be sustainable it needs regular bookings. That's likely to be high value goods where timely and reliable delivery are important.
Also bear in mind these goods are shipped directly to cities anywhere in Europe. For some goods Madrid might be a better hub than any sea port and it's is nowhere near the sea, so sea freight would still need to be transferred to rail or road to get there. That's not such an issue for London, but it's a factor for many of these routes.
I don't get your point about goods are shipped directly to cities? The train goes to Rotterdam and various other locations. Rotterdam has a huge infrastructure (train/truck/barge) already for delivering containers to the final destination. That would just be reused.
Other ingredients to the mix would include insurance and complex financial trades (e.g. derivatives).
If it's the United States then trains across central Asia are harder to stop and require bombing a third country (unlike a shipping blockade which just requires a threat and which doesnt require pissing off a third party).
If for some reason USA wanted to stop a train, a few payments to the poorest dictator along the route would get it done. They wouldn't even have to stop anything permanently to make shipping much less reliable.
The US could certainly make a few payments to a poor dictator in Central Asia to stop a train unless, of course, that country was reliant upon that train for the flow of critical goods, in which case it would take more than a few payments.
But I would presume there is geo-strategic interest for China to try and improve its internal and western regions. If we take this into consideration, it may be very efficient to directly ship via train to Europe, instead of first going several thousand km to the east, to reach China's coast.
The roads around here (Helsinki, Finland) used to be congested by trailer trucks transporting new Japanese cars from the harbour in Hanko across border to St. Petersburg.
Bothered by the flow of trucks, I asked why didn't they send the cars across from Japan over Trans-Siberian railway? I was told that too many cars disappeared on the way. In fact, sometimes a whole train disappeared.
Now Russia has built a suitable harbour of its own closer to St. Petersburg so that the flow of new cars doesn't need to come to the ringroads of Helsinki (and, I expect, the economic situation means fewer cars are sold there).
It has been reported that, for example, when containers are shipped by a "direct train" from China to Europe, it is only containers, and not the railcars, which move from China's railway network to that of Kazakhstan. At the border station at Khorgos, two trains (the Chinese standard-gauge one and the Kazakh Russian-gauge one) would stand side by side at parallel tracks, while the cranes would move the containers from one train to the other in as short time as 47 minutes.
- https://en.wikipedia.org/wiki/Break-of-gauge#Containerisatio...
A break of gauge needs to be crossed when entering Mongolia from China (or Russia directly from China, if traveling via Manzhouli/Zabaykalsk), and then another one when leaving Belarus for Poland.
(Mind you, in the US, they use low-deck cars like this for about 70% of containers... the difference being that the US railways can double-stack the containers. It's a wonderful rail system.)
More seriously though, it seems like an awesome rail trip if you can convince them to pull your private rail car.
I've travelled by rail through Russia, Kazakhstan, Uzbekistan and Kyrgyzstan. It's not always easy to buy (cheap) tickets online or in advance outside of Russia but it's worth taking the risk and buying in-country for the experience of the 3 + day journeys
http://news.xinhuanet.com/english/2016-07/23/c_135534991.htm
Also, how frequently could one of those trains run?
https://www.transporteca.com/transportpedia/sea-freight-air-...
http://richardtorian.blogspot.com/2012/01/cost-per-ton-mile-...
Even if it didn't out preform ships, it outperforms trucks. That would feed the market for faster shipping of small volumes vs slower shipping of larger orders.
I work for a shipping company btw. Don't have experience about the prices globally, but that source divides data from two completely different sources. That often doesn't end well.
There are companies tracking the average price of shipping a container across various trades.
Anyway, this is fixable. Planes and ships are not.
US is at 15%.
https://en.wikipedia.org/wiki/List_of_countries_by_electrici...
Renewables are clearly going to be a growing part of the energy mix, but the issue of base load is still an unanswered question.
https://electricitymap.tmrow.co/ https://en.wikipedia.org/wiki/Nuclear_power_in_Germany#Closu... http://www.platts.com/latest-news/electric-power/warsaw/poli...
More likely, you'll see one train per day, mainly because of choke points like the Eurotunnel. It's also likely that cargo will have to be moved around at least once, since rolling stock (train cars, etc.) aren't normally certified for high-speed running. Plus, you've got a mix of at least high-voltage AC (for Eurotunnel) and diesel, so there would be engine changes. Plus, many USSR countries aren't on "standard gauge", so you either need rolling stock with wheel sets of different gauges (widths), or you need to move cargo at specific transfer points.
In this case it's not a track at all, more like a schedule that uses different kinds of tracks and is actually run by different companies along the way. The track is also not owned by one company (like in the US), but by a different operator in each country. According to an article, the train set is changed twice for the trains coordinated from Germany.
Eurotunnel is likely not the choke point here (they could just load it on a ferry and only lose 1-2 hours), it's the change of rolling stock along the way, and other traffic it has to share the track with.
A proper, dedicated track could probably bring huge economic benefits for everyone involved, but I don't see that coming. As long as volume is low, none of the states the freight goes through has leverage (could still be shifted back to air/sea) which somehow guarantees that it works.
With the recent $500 billion plan for high-speed rail network in China, surely it also makes sense to modernize this Asia<->Europe track? For example building a dedicated track with standard gauge in Kazakhastan, Russia, or developing a more powerful locomotive dedicated to this.
15 days is half a month. But if this could be shortened to 10 days, it is 3 regular shipment in a month.
For someone like Apple, this could be extremely cost efficient. Rather then paying the high price to book every single possible fright from China, they could now do it via train, at least to everywhere in Europe.
That's just ~28 km/h on average. I ride my bicycle faster than that :).
[1] A bit old but fairly indicative as far as I can tell: https://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/pu...
However, this article says:
"The exit customs inspection for the Su’Man’Ou trains is done on-location in the bonded zone. The next time these containers will need to go undergo a customs inspection will be at the border of the EU, and they will typically not be opened until they arrive at their destination."
and
"These cargo relays are generally very simple procedures: the incoming train and the outgoing train are lined up side by side and a crane moves the containers from one to the other. At Khorgos Gateway, a new junction on the Silk Road Economic Belt on the border of Kazakhstan and China, this transfer can be done in just 47 minutes."
Google tells me that Germany has seven freight train services a week going to/from China.
http://tbngroup.de/en/internation-forwarding-logistics-from-...
Speed and frequency are both important, unless you have the liberty to synchronise.