Logistics between China and Europe: the realities of international transportation

The partnership between China and the countries of the European region is of great importance, especially in the context of international shipping by sea and other means of transport. It is the sea routes that have suffered significantly due to the danger in the Red Sea. And European operators also had problems with containers, but it helped delivery of groupage cargo from ChinaLet's consider the relationship between regions, the benefits of cargo consolidation, and what innovations to expect in this area.

An effective way to reduce costs and risks

In previous articles, we have looked at the relationship between China and the US, the trade war, how businesses are using maritime transport and artificial intelligence. You can read more in the article World events affect logistics: China-US standoff and more

Europe remains China's second largest trading partner despite recent difficulties. According to data for 2024, bilateral trade grew by 1.6%. Although the figures for previous years were in a state of decline by several percent. The conclusion is that despite the increase in the route with the passage of the Cape of Good Hope in southern Africa, demand has not decreased, but has almost normalized.  

International cargo transportation used alternative options when the need arose. This could be through a change in transport or a change in the approach to cargo consolidation. 

Solutions for efficient delivery on the China-Europe route, as well as China-Ukraine:

1. Change of route. When the route was rebuilt through the Cape of Good Hope, the route time increased by almost two weeks. An alternative is to use rail or road transport and travel part of the route overland to a convenient outlet to the sea. Unfortunately, it is impossible for Ukraine to completely replace it with rail logistics, since the basis of the rail network passes through a hostile country and is not profitable. The positive news is that some Chinese logistics operators have already launched vessels through the Suez Canal to Europe and back. 

2. LCL cargo. Changes in the route have forced many to reconsider the formulas for securing business. Groupage cargo allows you to send orders to several customers faster, this becomes a regular supply and reduces possible delays and shortages of goods. Allows you to bypass the shortage of containers. 

3. Alternative ports and hubs. Now returning via the Red Sea, the route uses the European hubs of Antwerp, Gdynia, Gdansk and Klaipeda. For Ukrainian businesses, bringing cargo to their address from these hubs is not a problem and can be profitable. 

Also, don't forget about pre-booking containers and transportation insurance. Only with our experienced logisticians will you find a good option to solve any situation.

What new things to expect and how to work with them?

In addition to the challenges that arise on logistics routes, businesses and carriers are faced with innovations from the industry or government leaders. While the main changes from China are related to the introduction of a mirror duty for goods and raw materials from the US and a revision of conditions for dangerous goods, in the context of the European Union there is now a greater emphasis on environmental friendliness of transportation and complexity. 

We have examined China's actions in previous articles on our blog, now it is worth considering in more detail what to expect from European countries. 

European logistics has been implementing changes to modernize and improve transport to reduce carbon emissions for a long time. They are betting on the transition from unimodal transport by road to an intermodal and multimodal approach. There are several EU directives that have been working in this direction for several years. 

Key steps for transitioning to multimodal transportation:

1. Internalization of external costs so that environmental taxes are paid by the one who “pollutes”.

2. Improving infrastructure for modal modes.

3. Better use of logistics data information.

4. Direct financial support for combined transport.

At the same time, the possibility of introducing cabotage quotas is being introduced. Cabotage quotas provide that certain restrictions will be introduced for international logistics operators when using the country's internal roads. This is used to prevent abuse and balance competition. Finland, Sweden, Denmark and Hungary have announced their desire to use these quotas.

So international sea freight transportation remain relevant in combination with other transport. But now it is better to pay additional attention to environmental standards.

New rules come into effect from February 11, 2025 PPWR for packaging, packaging waste and environmental labeling. The implementation program is designed for full implementation by 2030. 

What you need to know about the new regulation:

1. Packaging must be recyclable

2. Reduction of packaging volume and weight 

3. Product designs that artificially increase the size of the product are prohibited.

4. Labeling on composition and recyclability

5. Environmental claims must be supported by technical documentation if above the minimum standard

This applies to manufacturers, importers, product distributors and packaging material manufacturers. For EU businesses, it is worth adapting packaging to the new standards in advance to avoid fines and adhere to the planned implementation plan.

Despite all the difficulties in international transportation between regions, we can observe the increasing influence of Chinese investors on local businesses, port and other infrastructure. This global strategy of China helps to expand trade and ensure a stable supply of its goods. Despite the logistical and political risks of such investment, it can open up long-term and short-term prospects for business. 

Choose Mitridat as a reliable partner for your transportation.