MOSCOW: As ocean freight rates rise and remain unpredictable, Russian shippers are switching tracks and increasingly using rail transport to get goods from China.
The faster transit times — 20 days in many cases — and predictable nature of rail pricing have made it a much more appealing option for shippers seeking to plan their supply chains long term, despite the fact that rail transport can cost about $500 more per container.
“Delivery times by sea for cargo from Shanghai to Moscow via the port of St. Petersburg are currently around 45 to 50 days, compared with 25 to 30 days from Shanghai through the Russian city of Zabaykalsk by rail,” said Roman Ipatov, director of intermodal operations and logistics of Dachser Russia, the Russian subsidiary of German third-party logistics provider Dachser.
The price difference between rail and sea transport is not enough to make the longer transit times of ocean transport worth the wait, Ipatov said.
While it costs around $2,700 to $2,900 to get a container from Shanghai to St. Petersburg by sea, that rate is much more volatile than the $3,200 to $3,300 charged for rail shipments to Moscow from China, said Sergey Bezuglov, head of logistics, Kitaysky Tovar, as Russian distributor of Chinese clothes and textiles.
