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Due to the aggression of the Russian Federation, large car manufacturers are rebuilding logistics

06 May, 2022
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Due to the aggression of the Russian Federation, large car manufacturers are rebuilding logistics

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Large car manufacturers, who were once regular customers of rail transport between China and Europe, emerge from the New Silk Road, which runs through Russia.

Three major players in the car market - BMW, Audi and Porsche - have stopped shipping finished products through the Eurasian corridor.

Luxury cars have long been considered valuable goods that are usually transported by rail. The new Silk Road for high-value goods was chosen primarily due to creating conditions for safe transportation.

Transportation in Russia is too risky, often not covered by insurance companies or undesirable for moral reasons

However, now large companies are looking for new logistics options. Yes, BMW said that it transports the products by rail to the German port of Bremerhaven and, from there - by ship to China. Audi explained that the Middle Corridor, which passes through Romania, is used for transportation. This route is mostly railway but crosses the Black and Caspian Seas.

In October 2021, Volvo left the New Silk Road. The company named the reason for the sharp rise in value due to the relatively low quality of service.


The Odessa Journal

The Odessa Journal

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