M&A radar: HHLA gets its taste of Singapore sling with Cosco buy
HHLA-Cosco: listen to this carefully
There have been mixed reports about the success of the China-Europe rail service, and this SCMP article is one of the more negative viewpoints. While forwarders and shippers have been extolling the virtues of the service – it’s speed versus ocean and its price versus air – its big failing is the one-way traffic, which increases the cost of China’s goods. China’s European imports tend to be mechanical equipment and precision instruments, not commodities which have embraced rail freight as yet. However, increasing demand for European foodstuffs in China could result in greater traffic eastbound, although will take some time for the market pick up.