China’s “Suez Canal on rails” speeds trade to Europe

Chongqing, the sprawling inland metropolis in southwest China, is emerging as a strategic rail hub for trade between Asia and Europe. In 2025, Chinese media and officials have dubbed it a "Suez Canal on rails," as the city consolidates its role as a major alternative to maritime shipping routes. The ASEAN Express, a freight service connecting Southeast Asia to Europe via Chongqing, entered a new phase in June 2025 when the first return train departed Duisburg, Germany, bound for ASEAN countries.

The route reportedly allows goods to reach Vietnam, Laos and other Southeast Asian nations in around 19 days: more than 50% faster than shipping by sea. The corridor initially launched in late 2024 with trains from Hanoi to Chongqing, but the expansion this year has made the service fully bidirectional. The logistics model is supported by simplified customs clearance and a "one box" system for containers, streamlining cargo movements from ASEAN to Europe and back.

Rail freight from Chongqing to Europe typically arrives in under two weeks, compared with 30-40 days by sea. Euronews noted that this time saving of 10-20 days positions rail as an attractive option for high-value and time-sensitive cargo. Chongqing is also testing new connections beyond the established Chongqing-Xinjiang-Europe route.

In July 2025, the city launched an "ultra express" service via the so-called Middle Corridor through Kazakhstan and Turkey , cutting transit times to Europe by another 10 days, reported Chinese press.

Why the Suez Canal has become unreliable

The Suez Canal is grappling with serious operational challenges since late 2023, when Houthi attacks on Red Sea[1] shipping began forcing carriers to divert vessels around Africa. The detour adds 10-15 days to transit times and exposes operators to significant delays. Insurance premiums have also soared, with war-risk coverage rising to 1-2% of vessel value per trip and cargo insurance rates nearly quadrupling.

At the same time, congestion has intensified at European hubs[2]: Rotterdam and Antwerp are facing delays of 48-72 hours, while average wait times have jumped by 37% in Antwerp, 49% in Hamburg and 77% in Bremerhaven. Together, these risks (security threats, longer voyages, higher costs and port bottlenecks) are undermining the reliability of the Suez Canal and making rail alternatives increasingly attractive.

Strategic motivation: bypassing chokepoints, gaining more control

Beijing's drive to expand inland rail reflects broader efforts to diversify trade routes and reduce exposure to maritime chokepoints such as the Suez Canal and Strait of Malacca.  By transporting containers on electrified trains through Chinese territory and partner countries, China also gains greater control over supply chains.

This shift is part of the Belt and Road Initiative's long-term strategy to mitigate geopolitical risks and ensure more predictable delivery schedules.

Impact on European road transport

The expansion of rail freight through Chongqing is shifting opportunities for road transport in Europe. With Duisburg, Warsaw and Budapest serving as key unloading hubs, containers arriving by rail are transferred directly onto trucks for distribution across the EU. This generates steady demand for last-mile and cross-border haulage from inland terminals, even as some volumes bypass traditional maritime gateways such as Rotterdam or Hamburg.

Simplified customs processes and more predictable delivery schedules also support stable flows, which can help hauliers plan capacity more effectively. At the same time, the diversification of entry points, including routes via Turkey and Eastern Europe, may gradually redistribute demand for trucking services geographically, offering opportunities for carriers in Central and Southern Europe.

Why Chongqing? The rise of a logistics powerhouse

Despite its inland location, Chongqing has become a major export hub for electronics, machinery and vehicles.

The global maritime news provider MFAME described the city's rapid transformation as central to China's expanding trade footprint, noting that hundreds of containers are now transferred daily through its rail terminals. The scale is significant. By 2025, China-Europe freight trains had already carried over 11 million TEUs since the programme began, with Chongqing handling a growing share of that traffic.

With ASEAN rail services now integrated into the wider China-Europe network, Chongqing is positioned to play an even larger role in Eurasian logistics.

If rail freight volumes continue to rise and time savings remain consistent, China's "Suez Canal on rails" may become a lasting feature of global supply chains; especially for cargoes where speed, resilience and reliability outweigh shipping's lower costs.

References

1. ^ Houthi attacks on Red Sea (trans.info)
2. ^ congestion has intensified at European hubs (trans.info)