China reroutes 60% of freight towards Europe, reducing reliance on Russian rail

Posted on September 27, 2024   |  

Russia's heavy reliance on Chinese rail freight has been highlighted by disruptions following Ukraine’s recent counter-invasion and the effects of Western sanctions.

Chinese rail companies are shifting focus to Europe, cutting back services to Russia and nearby countries.

Chinese partners are rerouting 6 to 7 of every 10 trains to Europe, while only 3 to 4 are headed to Russia.

This is the 3rd major disruption to Russia’s rail system this year after Ukrainian forces took control of a Russian station during the August counter-invasion.

Russia’s main rail operator, RZD, is turning down freight from Belarus due to overcrowding and track congestion caused by Russian soldiers moving into Kursk.

Sanctions have caused a shortage of lubricants, making it hard for RZD to maintain trains and leading to more breakdowns.

In addition to reduced service from China, shippers now face a 22% increase in freight rates due to RZD’s tariff hike.