Comparison of China-Europe freight train services with sea and air freight
From origin to end consumer, differences in transportation methods can lead to cost fluctuations exceeding 30% and delivery time differences of several weeks, impacting the stability of customer partnerships. In cross-border logistics, sea freight, air freight, and the China-Europe Railway Express constitute the three main options, each adapting to diverse transportation needs with its own characteristics. How to make the right choice based on one's own business realities is a challenge every company must face.
Cost Dimension: Budget Adaptation Under Differentiated Costs
Sea freight's cost advantage lies in the cost per unit of cargo. The cost of a 20-foot full container load (FCL) is typically between 18.000 and 25.000 yuan, with a unit volume cost as low as 1.000-1.400 yuan per cubic meter. Less-than-container-load (LCL) shipping better meets the low-cost needs of small-batch shipments. This cost advantage makes it the primary choice for bulk, low-value goods, and even with additional costs such as fuel surcharges and port congestion fees, it remains highly competitive.
The China-Europe Railway Express's cost falls in the middle range, with freight rates approximately one-fifth of air freight. For standard cargo, the unit weight cost is $1.5-5/kg, with additional costs such as border transshipment and quarantine fees. However, compared to sea freight, the slight increase in cost can be offset by a faster transit time.
Air freight has the highest cost, with general cargo transport costs reaching $4-10/kg, 10-15 times that of sea freight. Fuel surcharges and security inspection fees fluctuate with the market, further increasing cost uncertainty, making it cost-effective only in emergency situations.
Transit Time: Balancing Speed and Stability
Air freight has an advantage in absolute speed, completing cross-continental transport between China and Europe in 3-7 days, precisely matching high-time-demand needs. However, its transit time is susceptible to flight scheduling and weather conditions, and requires connection to ground transportation, resulting in some fluctuation in transit time throughout the process.
China-Europe freight trains have a stable transit time of 18-22 days, with some optimized routes shortening it to 12-20 days, approximately one-third of sea freight. Improved port transshipment efficiency reduces transit time from 24 hours to within 4 hours, further ensuring timeliness stability and making it suitable for goods with specific time requirements but not necessarily requiring extreme speed.
Sea freight has the longest transit time, with full container load (FCL) shipments taking 30-40 days and less-than-container load (LCL) shipments extending to 3-8 weeks due to consolidation and sorting processes. Events such as the Suez Canal blockage have exposed the vulnerability of its routes, resulting in higher risks of timeliness fluctuations.
Suitable Scenarios: Selection Logic Driven by Cargo Characteristics
Sea freight is suitable for bulk, low-value goods exceeding 15 cubic meters, such as furniture and building materials. Its large capacity reduces unit transportation costs, making it suitable for planned transportation with less stringent timeliness requirements.
China-Europe freight trains cater to the demand for medium-value, time-sensitive goods. Automotive parts, machinery, and electronics account for over 60% of shipments, and new energy products are delivered efficiently via freight trains. Its combination of stability and cost-effectiveness makes it the preferred choice for balancing cost and timeliness.
Air freight focuses on high-value, perishable, or urgent goods. Electronic products and medical supplies are transported by air to ensure rapid market response; however, its limited capacity and high cost mean it can only serve as a supplementary mode of transport.
There is no fixed answer to the choice of logistics method; it requires a comprehensive judgment based on the value of the goods, time requirements, and cost budget. Enterprises can leverage digital tools to identify core needs and build efficient supply chain systems through optimization of single-mode transport or multimodal transport combinations. In a globalized logistics network, precisely matched transportation choices will become a crucial component of a company's competitiveness.