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Until recently, Laos lacked a national rail network. But on 2 December 2021 \u2013 the country\u2019s national day \u2013 all that changed. That\u2019s when freight and passenger trains started running along the new China\u2013Laos railway line, providing the fastest and most modern transport route yet into the Southeast Asian state.<\/p>\n
The high-speed rail link stretches 414km from Laos\u2019 capital Vientiane \u2013 located near Thailand\u2019s border \u2013 to Boten, which borders China in the north. From there, another 522km-long section runs to the Chinese city of Kunming in Yunnan Province, giving Laos additional land links to global and regional supply chains.<\/p>\n
Supporting China\u2019s Belt and Road Initiative<\/h2>\n
The railway is the largest infrastructure project yet seen in Laos, with a price tag of about US$6 billion (\u20ac5.31 billion) \u2013 or about a third of the country\u2019s GDP<\/a>.<\/p>\nThe Chinese government, however, has placed substantial financial backing to the project as part of its Belt and Road Initiative (BRI). The initiative is planned as the first step in China\u2019s ambitious plan to build a transnational railway link extending south through Thailand and the Malay peninsula all the way to Singapore.<\/p>\n
Beijing\u2019s willingness to underwrite the new line highlights the priority it places on resource-rich Laos<\/a> as part of its BRI plans.<\/p>\nChina has also outlined other investment plans for the country, including a motorway between Vientiane and Boten, and a cross-border Mohan-Boten economic zone, which Laos hopes could emulate some of the success of the southern Chinese technology hub of Shenzhen.<\/p>\n
![\"China-Laos](\"https:\/\/lot.dhl.com\/wp-content\/uploads\/2021\/11\/Laos-China-rail-infographic.jpg\")
<\/p>\n
A viable and affordable land-linked transport system<\/strong><\/h2>Leveraging on the new China-Laos railway, DHL Global Forwarding is the first international forwarder to provide a two-way rail freight service between Kunming, China and Vientiane, Laos.<\/p>\n
The two-way service combines trucking from all over China to the hub in Kunming, running through the China-Laos railroad, then onward with DHL\u2019s established road network service\u00a0 and back.<\/p>\n
The multi-modal service brings with it significant cost savings and transit times that are on par with airfreight. For example, a road\/rail service along Bangkok to Shanghai comes with the same transit time as an airfreight along the same route, and is 84 percent cheaper.<\/p>\n
\u201cBusinesses moving goods between China and ASEAN countries now have a strong viable alternative between air and ocean freight, and can tap further into DHL\u2019s robust road freight and multimodal network in the Southeast Asia region,\u201d said Thomas Tieber, CEO, DHL Global Forwarding Southeast Asia.<\/p>\n
Accelerating Laos\u2019 push to become a \u2018land-linked\u2019 economy<\/h3>\n![\"Laos](\"https:\/\/lot.dhl.com\/wp-content\/uploads\/2021\/12\/China-Laos-railway-service-launch-01.jpg\")
Laos leverages China’s rail connectivity for economic transformation and regional trade.<\/figcaption><\/figure>\nChina\u2019s regional rail connectivity plans and other BRI-backed developments dovetail neatly with Vientiane\u2019s long-held strategy of evolving the landlocked country into a \u2018land-linked\u2019 hub for the wider region.<\/p>\n
With a population of less than 8 million people, Laos is among the least industrialized states in Southeast Asia. The country\u2019s north, where the railway line runs, has until now been relatively removed from centers of commerce.<\/p>\n
But as Greg Raymond, a Southeast Asia expert at the Australian National University, recently told the South China Morning Post<\/em><\/a>, the Laotian government is determined to pull the country from the ranks of least-developed countries, and sees large-scale infrastructure as a central part of the solution.<\/p>\nLaos\u2019 new railway line leaves it well-positioned to take advantage of its strategic location in the midst of emerging economies, including Thailand and Vietnam, and reinvent itself as a multi-modal goods and services distribution hub for the region. If successful, it stands to reap tremendous benefits from regional trade.<\/p>\n
The China-Laos rail network will essentially make the country more attractive to investors, create new jobs, and accelerate its post-pandemic economic recovery. According to the World Bank, the new railway line could potentially help Laos increase its aggregate income by up to 21 percent in the long term.<\/p>\n
As a result, Laos will now be seeking ways to further improve infrastructure connectivity and enable cutting-edge multi-modal transport services. \u201cThe [Laotian] government has the policy to support business people. The country is also improving its business regulations and infrastructure to support business operations,\u201d commented Laotian political journalist Ekaphone Phouthonesy in a recent article in The Straits Times<\/em><\/a>.<\/p>\nRELATED ARTICLES<\/strong><\/p>![](\"https:\/\/lot.dhl.com\/wp-content\/uploads\/2019\/09\/Article-Key-Image-1396503833.jpg\"\/)
<\/figure><\/a>Bringing new opportunities to ASEAN markets<\/h3>\n
The new railway will also create closer trade linkages between all the countries covered by China\u2019s BRI, including those within the ASEAN trade bloc<\/a>.<\/p>\nChina is already ASEAN\u2019s largest trading partner, growing close to 40 percent year on year<\/a>. Recently, however, the Chinese government has been directing more BRI infrastructure investments towards the region to build greater trade connectivity within ASEAN member countries.<\/p>\nDespite a sharp drop in total BRI investments due to the disruptions of the COVID-19 pandemic, Southeast Asia became China\u2019s largest BRI destination in 2020<\/a>, accounting for 36 percent of total investment.<\/p>\nThis investment is fostering greater cooperation in sectors such as manufacturing, agriculture, infrastructure, high-tech, the digital economy, and the sustainable economy.<\/p>\n
2020 also saw China and ASEAN countries sign the Regional Comprehensive Economic Partnership<\/a>, which is expected to further boost mutual trade and investment, along with economic integration.<\/p>\n\u201cASEAN has a combined GDP of US$2.55 trillion<\/a> and is predicted to be the fourth-largest single market in the world by 2030. We see a very bright future for trade and economic activity in the region, which will translate to increased demand for logistics,\u201d said Steve Huang, Managing Director, DHL Global Forwarding, Greater China.<\/p>\nCurrently, trade flows between China and ASEAN rely mainly on maritime routes, with trade between Laos and China representing less than 2 percent of total China\u2013ASEAN trade.<\/p>\n
According to the World Bank<\/a>, the opening of the Laos line could increase trade flows between China and Laos from 1.2 million tonnes in 2016 to 3.9 million tonnes by 2030.<\/p>\nThis would include a shift of an estimated 1.5 million tonnes of trade from maritime transport to the railway and significantly reduce land transport prices by up to 50 percent between Vientiane and Kunming.<\/p>\n
RELATED ARTICLES<\/strong><\/p>![](\"https:\/\/lot.dhl.com\/wp-content\/uploads\/2021\/02\/Raymond-Yee.jpg\"\/)
<\/figure><\/a>Global trade: the biggest winner<\/h3>\n
In the short term, the China\u2013Laos railway puts Laos on the fast track to realize its vision of becoming a \u2018land bridge,\u2019 providing the most direct overland transportation routes between its coastal neighbors.<\/p>\n
In the longer term, with trade, retail, and tourism all now high on the agenda for foreign investment opportunities, the new infrastructure makes it possible for Laos to reimagine its economic future.<\/p>\n
Above all, however, the rail project demonstrates enormous potential in bringing ASEAN countries closer together and transforming the region\u2019s logistic capabilities.<\/p>\n","post_title":"New high-speed railway puts Laos on track to boost regional trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"high-speed-railway-laos-boost-regional-trade","to_ping":"","pinged":"","post_modified":"2025-08-15 16:58:15","post_modified_gmt":"2025-08-15 08:58:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/lot.dhl.com\/?p=27085","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},"custom":{"thumbnail":false,"title":"","excerpt":"","cta":"Read more","linkmail":false,"cta_url":"","email_address":"","outbound_email_subject":""},"select_existing_outbound_links":false}]},{"acf_fc_layout":"wysiwyg","wysiwyg":"
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DHL\u5168\u7403\u8d27\u8fd0\u6d77\u8fd0\u90e8\u5168\u7403\u4e3b\u7ba1Dominique von Orelli\u79f0\uff0c\u81f3\u5c11\u5728\u4eca\u5e74\u4e0a\u534a\u5e74\u5185\uff0c\u4f9b\u9700\u72b6\u51b5\u4ecd\u7136\u4e0e\u53bb\u5e74\u76f8\u4f3c\u3002\u201c\u6211\u4eec\u9884\u8ba12022\u5e74\u4e0a\u534a\u5e74\u4f9b\u5e94\u72b6\u51b5\u7684\u6613\u53d8\u6027\u4ecd\u5c06\u57fa\u672c\u6cbf\u77402021\u5e74\u76f8\u4f3c\u7684\u8f68\u8ff9\u53d1\u5c55\uff0c\u201dvon Orelli\u8bf4\u9053\u3002<\/p>\n
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Global recovery is starting, despite China\u2019s power cuts and zero Covid strategy having an impact. <\/p>
As we enter the middle of the northern hemisphere winter, there has been some deflation in spot freight and container charter rates, although both metrics remain at historically inflated levels.<\/p>\n
But perhaps the most significant trend emerging for container shipping and global supply chains is evident in China, where strict zero Covid strategy quarantines and electricity blackouts are disrupting manufacturing.<\/p>\n
Both could play a huge role in determining output levels from \u2018the world\u2019s factory\u2019 in the months ahead and the drop in output may already be a factor in the softening of freight rates.<\/p>\n
Certainly, September port statistics indicate that box volumes at key Chinese hubs slowed<\/a> just as the first rounds of power cuts started to disrupt output. Anecdotal evidence suggests power cuts have also been biting hard in the fourth quarter, with some ports suffering reported double-digit monthly volume drops.<\/p>\nThe impact of China\u2019s zero covid strategy and power cuts<\/strong><\/p>\nPower shortages and outages have been unevenly dispersed across the Chinese cities, and often imposed at short notice. This has been exacerbated by an ongoing trade spat with Australia<\/a> – previously a key coal supplier – which has hit coal availability and driven up prices for the fuel which provides the lion\u2019s share of China\u2019s electricity.<\/p>\nNonetheless, the central and central west provinces are relying heavily on renewable energy sources, which alleviates the current situation. \u201cWe are observing an improvement in the power shortage, amidst strong export levels,\u201d said Kelvin Leung, CEO, DHL Global Forwarding Asia Pacific.<\/p>\n
On the energy consumption front, the country has shown little sign that it might pull back from its longstanding reduction targets. Certainly, in the Beijing area, it seems highly likely that efforts to reduce emissions will continue through the Beijing Winter Olympics in February 2022.<\/p>\n
Its zero Covid strategy, meanwhile, has seen entire regions placed under curfew and international borders closed for over 18 months. This has worked through 2020 and most of 2021, with its economy being the only to grow by 2.3 percent in 2020<\/a>.<\/p>\nThe prolonged strategy, however, is starting to show signs of a slowing domestic economy. \u201cChina\u2019s GDP grew by 4.9% in the third quarter<\/a>, so there was a clear loss of momentum compared to the 7.9% recorded by the National Bureau of Statistics in the second quarter,\u201d noted Leung.<\/p>\nAs gains are likely to diminish while pains could rapidly rise, China\u2019s overall strategy has global implications owing to its role in global production and supply chains. Stringent import measures due to Covid over the past few weeks, and the expected closure of factories ahead of Chinese New Year, will constrain manufacturing output while global inventory levels are again on the rise.<\/p>\n
\u201cWe are working with our customers in China to ensure their supply chains are as flexible as possible and they can adapt to any policy changes as they arise,\u201d added Leung.<\/p>\n
RELATED ARTICLES<\/strong><\/p>![](\"https:\/\/lot.dhl.com\/wp-content\/uploads\/2021\/10\/ocean-freight-Oct-2021-update-key-image.jpg\"\/)
<\/figure><\/a>US consumption on the rise<\/strong><\/p>\nThe flipside of constrained production in China is buoyant demand from the US, the market which has taken a bulk of the vessel capacity and equipment<\/a> away from other global container trades over the last year. This is mainly due to the crunch of the holiday season, with shippers desperate to get cargo into the U.S. as inventory levels remain low.<\/p>\nAnalyst firm Sea-Intelligence highlights that consumption of goods in September was still \u201cfast outpacing\u201d that of services. \u201cThe consumption boom driving container volumes showed no signs of abating in September,\u201d reported the analyst firm. \u201cWhilst there was some element of decline in the growth rate, this was to a large degree driven by motor vehicles and not by typically containerised consumer commodities.\u201d<\/p>\n
Sea-Intelligence also notes that while demand is shifting from durable to non-durable goods, this will not materially alter the boom in container volumes. \u201cThis means we should not expect a decline in demand to \u2018rescue\u2019 the congestion and bottleneck situation in the short to medium term,\u201d it added.<\/p>\n
Consulting firm Hackett Associates now expects year-on-year US container import volume growth to continue throughout the November-February period, which will make it difficult to clear supply chain bottlenecks, not least at ports.<\/p>\n
On top of that, global ocean supply chains remain afflicted by multiple headwinds that will continue to affect businesses in the months ahead.<\/p>\n
\u201cFrom power outages and port shutdowns in Asia to backed-up ships and shortages of truck drivers in the United States, there are few positive signs that the movement of consumer goods or the supply of inputs needed for industrial production is getting better,\u201d said Hackett Associates founder Ben Hackett.<\/p>\n
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But on 2 December 2021 \u2013 the country\u2019s national day \u2013 all that changed. That\u2019s when freight and passenger trains started running along the new China\u2013Laos railway line, providing the fastest and most modern transport route yet into the Southeast Asian state.<\/p>\n The high-speed rail link stretches 414km from Laos\u2019 capital Vientiane \u2013 located near Thailand\u2019s border \u2013 to Boten, which borders China in the north. From there, another 522km-long section runs to the Chinese city of Kunming in Yunnan Province, giving Laos additional land links to global and regional supply chains.<\/p>\n The railway is the largest infrastructure project yet seen in Laos, with a price tag of about US$6 billion (\u20ac5.31 billion) \u2013 or about a third of the country\u2019s GDP<\/a>.<\/p>\n The Chinese government, however, has placed substantial financial backing to the project as part of its Belt and Road Initiative (BRI). The initiative is planned as the first step in China\u2019s ambitious plan to build a transnational railway link extending south through Thailand and the Malay peninsula all the way to Singapore.<\/p>\n Beijing\u2019s willingness to underwrite the new line highlights the priority it places on resource-rich Laos<\/a> as part of its BRI plans.<\/p>\n China has also outlined other investment plans for the country, including a motorway between Vientiane and Boten, and a cross-border Mohan-Boten economic zone, which Laos hopes could emulate some of the success of the southern Chinese technology hub of Shenzhen.<\/p>\n Leveraging on the new China-Laos railway, DHL Global Forwarding is the first international forwarder to provide a two-way rail freight service between Kunming, China and Vientiane, Laos.<\/p>\n The two-way service combines trucking from all over China to the hub in Kunming, running through the China-Laos railroad, then onward with DHL\u2019s established road network service\u00a0 and back.<\/p>\n The multi-modal service brings with it significant cost savings and transit times that are on par with airfreight. For example, a road\/rail service along Bangkok to Shanghai comes with the same transit time as an airfreight along the same route, and is 84 percent cheaper.<\/p>\n \u201cBusinesses moving goods between China and ASEAN countries now have a strong viable alternative between air and ocean freight, and can tap further into DHL\u2019s robust road freight and multimodal network in the Southeast Asia region,\u201d said Thomas Tieber, CEO, DHL Global Forwarding Southeast Asia.<\/p>\n China\u2019s regional rail connectivity plans and other BRI-backed developments dovetail neatly with Vientiane\u2019s long-held strategy of evolving the landlocked country into a \u2018land-linked\u2019 hub for the wider region.<\/p>\n With a population of less than 8 million people, Laos is among the least industrialized states in Southeast Asia. The country\u2019s north, where the railway line runs, has until now been relatively removed from centers of commerce.<\/p>\n But as Greg Raymond, a Southeast Asia expert at the Australian National University, recently told the South China Morning Post<\/em><\/a>, the Laotian government is determined to pull the country from the ranks of least-developed countries, and sees large-scale infrastructure as a central part of the solution.<\/p>\n Laos\u2019 new railway line leaves it well-positioned to take advantage of its strategic location in the midst of emerging economies, including Thailand and Vietnam, and reinvent itself as a multi-modal goods and services distribution hub for the region. If successful, it stands to reap tremendous benefits from regional trade.<\/p>\n The China-Laos rail network will essentially make the country more attractive to investors, create new jobs, and accelerate its post-pandemic economic recovery. According to the World Bank, the new railway line could potentially help Laos increase its aggregate income by up to 21 percent in the long term.<\/p>\n As a result, Laos will now be seeking ways to further improve infrastructure connectivity and enable cutting-edge multi-modal transport services. \u201cThe [Laotian] government has the policy to support business people. The country is also improving its business regulations and infrastructure to support business operations,\u201d commented Laotian political journalist Ekaphone Phouthonesy in a recent article in The Straits Times<\/em><\/a>.<\/p>\n RELATED ARTICLES<\/strong><\/p> The new railway will also create closer trade linkages between all the countries covered by China\u2019s BRI, including those within the ASEAN trade bloc<\/a>.<\/p>\n China is already ASEAN\u2019s largest trading partner, growing close to 40 percent year on year<\/a>. Recently, however, the Chinese government has been directing more BRI infrastructure investments towards the region to build greater trade connectivity within ASEAN member countries.<\/p>\n Despite a sharp drop in total BRI investments due to the disruptions of the COVID-19 pandemic, Southeast Asia became China\u2019s largest BRI destination in 2020<\/a>, accounting for 36 percent of total investment.<\/p>\n This investment is fostering greater cooperation in sectors such as manufacturing, agriculture, infrastructure, high-tech, the digital economy, and the sustainable economy.<\/p>\n 2020 also saw China and ASEAN countries sign the Regional Comprehensive Economic Partnership<\/a>, which is expected to further boost mutual trade and investment, along with economic integration.<\/p>\n \u201cASEAN has a combined GDP of US$2.55 trillion<\/a> and is predicted to be the fourth-largest single market in the world by 2030. We see a very bright future for trade and economic activity in the region, which will translate to increased demand for logistics,\u201d said Steve Huang, Managing Director, DHL Global Forwarding, Greater China.<\/p>\n Currently, trade flows between China and ASEAN rely mainly on maritime routes, with trade between Laos and China representing less than 2 percent of total China\u2013ASEAN trade.<\/p>\n According to the World Bank<\/a>, the opening of the Laos line could increase trade flows between China and Laos from 1.2 million tonnes in 2016 to 3.9 million tonnes by 2030.<\/p>\n This would include a shift of an estimated 1.5 million tonnes of trade from maritime transport to the railway and significantly reduce land transport prices by up to 50 percent between Vientiane and Kunming.<\/p>\n RELATED ARTICLES<\/strong><\/p> In the short term, the China\u2013Laos railway puts Laos on the fast track to realize its vision of becoming a \u2018land bridge,\u2019 providing the most direct overland transportation routes between its coastal neighbors.<\/p>\n In the longer term, with trade, retail, and tourism all now high on the agenda for foreign investment opportunities, the new infrastructure makes it possible for Laos to reimagine its economic future.<\/p>\n Above all, however, the rail project demonstrates enormous potential in bringing ASEAN countries closer together and transforming the region\u2019s logistic capabilities.<\/p>\n","post_title":"New high-speed railway puts Laos on track to boost regional trade","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"high-speed-railway-laos-boost-regional-trade","to_ping":"","pinged":"","post_modified":"2025-08-15 16:58:15","post_modified_gmt":"2025-08-15 08:58:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/lot.dhl.com\/?p=27085","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},"custom":{"thumbnail":false,"title":"","excerpt":"","cta":"Read more","linkmail":false,"cta_url":"","email_address":"","outbound_email_subject":""},"select_existing_outbound_links":false}]},{"acf_fc_layout":"wysiwyg","wysiwyg":" \u7136\u800c\uff0c\u4fdd\u6301\u4e00\u5b9a\u7a0b\u5ea6\u7684\u8c28\u614e\u4e50\u89c2\u662f\u6709\u539f\u56e0\u7684\u3002\u627f\u8fd0\u5546\u4e00\u76f4\u5c1d\u8bd5\u901a\u8fc7\u589e\u52a0\u822a\u73ed\u6765\u586b\u8865\u7a7a\u7f3a\u3002\u53e6\u4e00\u65b9\u9762\uff0c\u4e0d\u5c11\u4f01\u4e1a\u5b66\u4f1a\u4e86\u5c3d\u53ef\u80fd\u5730\u5bf9\u8ba2\u5355\u8fdb\u884c\u89c4\u5212\u4ee5\u4fdd\u969c\u8fd0\u529b\u3002<\/p>\n \u4eca\u5e74\u6625\u8282\u671f\u95f4\u901a\u5e38\u7684\u5236\u9020\u4e1a\u51cf\u901f\u6709\u5e0c\u671b\u7f13\u89e3\u8fd9\u4e2a\u72b6\u51b5\u3002\u201c\u6211\u4eec\u5e0c\u671b\u9700\u6c42\u51cf\u5c11\u53ef\u4ee5\u7f13\u89e3\u67d0\u4e9b\u6e2f\u53e3\u7684\u62e5\u5835\u72b6\u51b5\uff0c\u800c\u4e14\u8ba9\u627f\u8fd0\u5546\u7684\u8239\u671f\u53ef\u9760\u6027\u8fbe\u5230\u8f83\u4e3a\u6b63\u5e38\u7684\u6c34\u5e73\uff0c\u201dLeung\u8bf4\u9053\u3002<\/p>\n \u7136\u800c\uff0c\u57282022\u5e74\u5927\u90e8\u5206\u65f6\u95f4\u91cc\uff0c\u6e2f\u53e3\u74f6\u9888\u5f88\u53ef\u80fd\u5728\u6d77\u8fd0\u4f9b\u5e94\u94fe\u7684\u6548\u7387\u548c\u53ef\u9760\u6027\u65b9\u9762\u8d77\u5230\u4e3e\u8db3\u8f7b\u91cd\u7684\u4f5c\u7528\u3002\u6839\u636e\u6770\u5bcc\u745e\u96c6\u56e2\u5206\u6790\u5e08Randy Giveans\u7684\u8ba1\u7b97\uff0c\u53bb\u5e7411\u6708\uff0c\u5e73\u5747\u670936.2\uff05\u7684\u96c6\u88c5\u7bb1\u8239\u8fd0\u529b\u62e5\u5835\u5728\u6e2f\u53e3\u3002<\/p>\n DHL\u5168\u7403\u8d27\u8fd0\u6d77\u8fd0\u90e8\u5168\u7403\u4e3b\u7ba1Dominique von Orelli\u79f0\uff0c\u81f3\u5c11\u5728\u4eca\u5e74\u4e0a\u534a\u5e74\u5185\uff0c\u4f9b\u9700\u72b6\u51b5\u4ecd\u7136\u4e0e\u53bb\u5e74\u76f8\u4f3c\u3002\u201c\u6211\u4eec\u9884\u8ba12022\u5e74\u4e0a\u534a\u5e74\u4f9b\u5e94\u72b6\u51b5\u7684\u6613\u53d8\u6027\u4ecd\u5c06\u57fa\u672c\u6cbf\u77402021\u5e74\u76f8\u4f3c\u7684\u8f68\u8ff9\u53d1\u5c55\uff0c\u201dvon Orelli\u8bf4\u9053\u3002<\/p>\n \u6770\u5bcc\u745e\u96c6\u56e2Giveans\u8fd8\u8ba4\u4e3a\u7f13\u89e3\u74f6\u9888\u6240\u505a\u7684\u52aa\u529b\u53ef\u80fd\u4f1a\u5728\u4eca\u5e74\u665a\u4e9b\u65f6\u5019\u53d6\u5f97\u6210\u679c\u3002\u201c2022\u5e74\u5185\uff0c\u968f\u7740\u62e5\u5835\u95ee\u9898\u7684\u7f13\u89e3\uff0c\u8fd0\u4ef7\u5f88\u53ef\u80fd\u4f1a\u4ece\u5cf0\u503c\u6c34\u5e73\u56de\u843d\uff0c\u201d\u4ed6\u8bf4\u9053\u3002<\/p>\n"},{"acf_fc_layout":"outbound_box","cards":[{"type":"linked","linked_post":{"ID":27094,"post_author":"1387","post_date":"2021-11-26 12:11:23","post_date_gmt":"2021-11-26 04:11:23","post_content":" Global recovery is starting, despite China\u2019s power cuts and zero Covid strategy having an impact. <\/p> As we enter the middle of the northern hemisphere winter, there has been some deflation in spot freight and container charter rates, although both metrics remain at historically inflated levels.<\/p>\n But perhaps the most significant trend emerging for container shipping and global supply chains is evident in China, where strict zero Covid strategy quarantines and electricity blackouts are disrupting manufacturing.<\/p>\n Both could play a huge role in determining output levels from \u2018the world\u2019s factory\u2019 in the months ahead and the drop in output may already be a factor in the softening of freight rates.<\/p>\n Certainly, September port statistics indicate that box volumes at key Chinese hubs slowed<\/a> just as the first rounds of power cuts started to disrupt output. Anecdotal evidence suggests power cuts have also been biting hard in the fourth quarter, with some ports suffering reported double-digit monthly volume drops.<\/p>\n The impact of China\u2019s zero covid strategy and power cuts<\/strong><\/p>\n Power shortages and outages have been unevenly dispersed across the Chinese cities, and often imposed at short notice. This has been exacerbated by an ongoing trade spat with Australia<\/a> – previously a key coal supplier – which has hit coal availability and driven up prices for the fuel which provides the lion\u2019s share of China\u2019s electricity.<\/p>\n Nonetheless, the central and central west provinces are relying heavily on renewable energy sources, which alleviates the current situation. \u201cWe are observing an improvement in the power shortage, amidst strong export levels,\u201d said Kelvin Leung, CEO, DHL Global Forwarding Asia Pacific.<\/p>\n On the energy consumption front, the country has shown little sign that it might pull back from its longstanding reduction targets. Certainly, in the Beijing area, it seems highly likely that efforts to reduce emissions will continue through the Beijing Winter Olympics in February 2022.<\/p>\n Its zero Covid strategy, meanwhile, has seen entire regions placed under curfew and international borders closed for over 18 months. This has worked through 2020 and most of 2021, with its economy being the only to grow by 2.3 percent in 2020<\/a>.<\/p>\n The prolonged strategy, however, is starting to show signs of a slowing domestic economy. \u201cChina\u2019s GDP grew by 4.9% in the third quarter<\/a>, so there was a clear loss of momentum compared to the 7.9% recorded by the National Bureau of Statistics in the second quarter,\u201d noted Leung.<\/p>\n As gains are likely to diminish while pains could rapidly rise, China\u2019s overall strategy has global implications owing to its role in global production and supply chains. Stringent import measures due to Covid over the past few weeks, and the expected closure of factories ahead of Chinese New Year, will constrain manufacturing output while global inventory levels are again on the rise.<\/p>\n \u201cWe are working with our customers in China to ensure their supply chains are as flexible as possible and they can adapt to any policy changes as they arise,\u201d added Leung.<\/p>\n RELATED ARTICLES<\/strong><\/p> US consumption on the rise<\/strong><\/p>\n The flipside of constrained production in China is buoyant demand from the US, the market which has taken a bulk of the vessel capacity and equipment<\/a> away from other global container trades over the last year. This is mainly due to the crunch of the holiday season, with shippers desperate to get cargo into the U.S. as inventory levels remain low.<\/p>\n Analyst firm Sea-Intelligence highlights that consumption of goods in September was still \u201cfast outpacing\u201d that of services. \u201cThe consumption boom driving container volumes showed no signs of abating in September,\u201d reported the analyst firm. \u201cWhilst there was some element of decline in the growth rate, this was to a large degree driven by motor vehicles and not by typically containerised consumer commodities.\u201d<\/p>\n Sea-Intelligence also notes that while demand is shifting from durable to non-durable goods, this will not materially alter the boom in container volumes. \u201cThis means we should not expect a decline in demand to \u2018rescue\u2019 the congestion and bottleneck situation in the short to medium term,\u201d it added.<\/p>\n Consulting firm Hackett Associates now expects year-on-year US container import volume growth to continue throughout the November-February period, which will make it difficult to clear supply chain bottlenecks, not least at ports.<\/p>\n On top of that, global ocean supply chains remain afflicted by multiple headwinds that will continue to affect businesses in the months ahead.<\/p>\n \u201cFrom power outages and port shutdowns in Asia to backed-up ships and shortages of truck drivers in the United States, there are few positive signs that the movement of consumer goods or the supply of inputs needed for industrial production is getting better,\u201d said Hackett Associates founder Ben Hackett.<\/p>\n\u8f6c\u79fb\u95ee\u9898<\/strong><\/h2>\n
Supporting China\u2019s Belt and Road Initiative<\/h2>\n
<\/p>\nA viable and affordable land-linked transport system<\/strong><\/h2>
Accelerating Laos\u2019 push to become a \u2018land-linked\u2019 economy<\/h3>\n
<\/figure><\/a>Bringing new opportunities to ASEAN markets<\/h3>\n
<\/figure><\/a>Global trade: the biggest winner<\/h3>\n
\u9884\u8ba1\u4ece2023\u5f00\u59cb\u6062\u590d\u65b0\u5e38\u6001<\/strong><\/h2>\n
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