Houthi attacks increased the volume of freight traffic on Russian railways – Kommersant

Houthi attacks in the Red Sea have reduced traffic through the Suez Canal, increasing demand for freight on Russian railways, the newspaper reported. Financial Times. This will increase Russian Railways’ profits.

Since December, the number of applications for cargo transportation on Russian railways has increased by 40%, reported the German logistics company DHL. RailGate Europe reported that demand has increased by 25-35%, and according to the Dutch carrier, Rail Bridge Cargo, Russian railways have become 31% more popular compared to last year.

Following Yemen’s Houthi attacks on merchant ships in the Red Sea, logistics companies began to avoid the Suez Canal and bypass Africa, increasing travel times from Asia to Europe to 50-55 days. By rail through Russia this journey takes 25-30 days. However, according to the newspaper, the railway’s capacity is significantly lower than that of container ships.

According to the FT, Russian Railways maintains a “virtually complete monopoly” on transport within Russia, meaning companies will pay both for transporting goods and for access to its network. In February, Russian Railways reported an increase in rail transportation with China by 36% over the year based on the results of 2023. The company explained this dynamics by the active work of railway border crossings.

Read about the development of the situation in the Red Sea in the Kommersant publication “The Houthis are still on fire.”

Alexandra Goroshilova