Land routes see uptick amid Red Sea crisis

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Land routes see uptick amid Red Sea crisis

With major liners suspending Red Sea runs due to violent attacks on merchant ships, and drought cutting Panama Canal transits, global logistic dynamics appear to be shifting. 

Air freight has risen as an alternative for Indian grapes and other products, however, land routes have seen the steepest uptick.

The China Railway operated almost 3,000 Europe-bound trains between January and February, as exporters turned to the service for more reliable transportation. During those months, the China-Europe Railway Express moved over 300,000 20-foot unit containers of goods, scoring a 10% year-on-year increase, Global Times reported. 


Related articles: Red Sea crisis drives air freight as alternative to higher maritime costs

Pakistani exporters have also turned to land routes to secure shipments to Russia. Earlier this week, sixteen trucks of oranges shipped by Pakistan’s National Logistics Corporation arrived in Derbent and Grozny, covering over 3,000 miles.

“The introduction of shipping services has transformed trade relations between the two nations, presenting significant business opportunities and the potential to elevate bilateral trade to US$20 billion,” according to MM News.

Pakistan and Russia’s trade currently amounts to approximately $450 million, with Pakistani exports to Russia expected to rise to $2.5 billion in the coming years with the implementation of a direct shipping service.

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