The Suez Canal Trade Crisis and the Opportunities of Intermodal Transport

Since early 2024, the Suez Canal crisis has created significant disruptions to global trade, blocking the main route between Europe and the Eastern world.

Tensions caused by attacks on the part of the Houthi, a radical Yemeni Islamic group, have led major shipping companies to redirect ships via the Cape of Good Hope, increasing delivery times and costs.

We provide a cost-effective and efficient solution: we connect China to all European destinations, and by combining sea and rail services, we extend our network to South Korea, Japan, Hong Kong, Taiwan and even South East Asia with Thailand, Vietnam and Indonesia, offering significantly shorter transit times than traditional sea routes.

The routes are also valid in the opposite direction, ensuring bi-directional coverage and a service for both imports and exports.

Several newspapers have reported on the problem and how companies have turned to rail and intermodal transport, mentioning Furlog.

In fact, Giuseppe Buganè, our Managing Director, spoke with an accurate analysis of the current situation showing the advantages of rail transport at the webinar The Suez Canal Crisis: Scenarios on the China-Europe Trade Route organised by the Logistics Working Group of the Italy China Council Foundation (ICCF), with the support of the Italian Association of Foreign Trade (AICE), the Association of Italy Hong Kong, The International Propeller Club – Port of Milan, and with the participation of Club Asia.

Read the press review

Il Sole 24 ore – More goods trains from Italy to Germany. And more routes from China to Europe

Over the past decade, freight trains connecting Europe and China have reached more than 200 cities in 25 European countries and more than 100 cities in 11 Asian countries and regions.
In addition, the Red Sea crisis has pushed freight traffic not only by sea to the Cape of Good Hope, but also by train between Europe and Asia.
The presence of logistics operators such as Furlog is crucial in the recent increase in routes and trade relations with China.
By sea, via South Africa, it takes 50-60 days, while Furlog’s rail transport service offers an average transit time of 25 days.
Furthermore, it is cheaper and more sustainable than air transport, and we offer specific transport services, connecting more than 25 countries between Europe and Asia through a dense network and customised intermodal solutions.

La Repubblica – Too many risks on sea routes: time for rail to redeem itself

Rail transport between China and Europe has increased by 6% since 2022 and is set to grow further. This growth is due to China’s investments with the Belt and Road Initiative, but also to the Suez Canal crisis.

“Not everyone is willing to take the risks of running into a Houthi attack, or in the middle of a US counteroffensive. And the passage from the Cape of Good Hope costs on average ten days more to sail, while the charter costs have already increased by 300%”.

Giuseppe Bugané, Managing Director of Furlog, during the webinar The Suez Canal Crisis: Scenarios on the China-Europe Trade Route, underlined the strategic importance of transport between the European Union and Central Asia.

“He examined the importance of intermodality in the logistics sector, which requires careful planning and cooperation between different geographical areas. The Silk Road plays an important role in optimising intercontinental trade, offering faster times and reducing CO2 emissions. Today’s railway market is a response to the threefold need to combine speed, quantity and reliability, all as a function of the long-term process of decarbonization”.

In this context, Furlog confirms itself as a key player in the international rail transport sector, being a pioneer in offering rail services from China to Italy and vice versa, along with flexible and reliable logistics solutions for companies now seeking to avoid the risks present on the Suez Canal.
The aim is to create a “state-of-the-art, multimodal and efficient” route.

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In conclusion

Thanks to its established expertise in this field and its ability to provide customised solutions, Furlog is a reference point for companies looking for efficient and flexible transport services.
With a constant commitment to ensuring the highest quality, Furlog offers door-to-door freight forwarding for both full loads and groupage, customs assistance, the provision of equipment (such as containers of various types), “all inclusive” insurance solutions and “track & tracing” monitoring of goods, with the possibility of GPS tracking of loads, and finally customer support in Italian, English, Chinese and Russian.

For more information on how Furlog can support your freight transport needs between Italy, China and South East Asia, please contact our team.