Germany's Growing Exports to China Boost Demand for Rail Freight

Published February 21, 2023 · Sino-Euro Railway

Rail has become the fastest-growing link in Germany–China trade. Trains cover the route in about 10 to 12 days — roughly a third of ocean transit time — at a fraction of air freight cost, which is why a rising share of German exports to China now moves by rail.

The first advantage is speed. While sea transportation between Germany and China can take a month or more, rail delivers in 10–12 days, a decisive benefit for high-value, time-sensitive goods such as electronics and machinery.

The second advantage is cost. Air freight is prohibitively expensive for many products, and although ocean shipping is cheaper than rail, the faster transit time of trains often makes rail the more economical option once inventory and financing costs are considered.

Reliability and sustainability add to the case. Trains are far less exposed to storms, typhoons and port congestion than ocean vessels, and they produce considerably fewer greenhouse gas emissions per unit of cargo than air or sea transport.

As German–Chinese trade continues to expand, rail also offers the capacity and departure frequency that growing volumes require. With continued investment in railway infrastructure and closer cooperation between the two countries, rail freight is set to play an increasingly important role in this trade relationship.