Topic of the week: High-Speed Freight Trains Emerge as Alternative to Trucks in UK
The UK logistics industry is witnessing a shift towards high-speed freight trains as a viable alternative to trucks for moving time-critical goods. Varamis Rail, a start-up, has launched a service using converted passenger trains to transport goods between Birmingham International and Glasgow, with plans to introduce another service between Birmingham and London Liverpool Street in May.
The trains, which can reach speeds of 100mph, offer several advantages over trucks, including faster travel times, higher capacity, and reduced carbon emissions. Each carriage has the same capacity as one-and-a-half trailers for a road heavy goods vehicle (HGV), making them an attractive option for companies in the life sciences, agricultural, and critical spare parts sectors.
Freightliner, the UK's second-biggest rail freight operator, is also planning to launch a high-speed rail service using old passenger trains, with a major high-street retailer as its customer. The service will use diesel power on non-electrified lines.
While there are still challenges to overcome, including integrating with customers' road-based logistics networks and addressing perceptions of rail unreliability, the industry is optimistic about the potential for high-speed rail services to establish a significant market niche.
The Rail Freight Group expects more expansions of fast freight services by rail, with Varamis having proved it is possible to meet the demanding requirements of logistics customers. As the economy recovers, companies may be more willing to take risks and adopt new modes of transportation, potentially leading to increased adoption of high-speed freight trains in the UK.
Sea:
- Over the last two weeks China/East Asia to North America West Coast spot rates have decreased by 15.8% from $2,659/FEU to $2,238/FEU according to Freightos data.
- China/East Asia to North America East Coast spot rates have fallen over the last two weeks, decreasing by 10.9% to $3,343/FEU.
- Global container spot prices have fallen over the last two weeks, and are now sitting at $2,422/FEU, a 13.5% decrease over the last two weeks and a 7.6% decrease from spot rates this time in 2024 according to the Freightos Baltic Index (FBX)
Air:
- Global Air Freight spot rates currently sit at $2.28, as rates continue to fluctuate according to the Freightos Air Freight Index (FAX)
- Europe to Northern America spot rates currently sit at $2.47 (100-3000kg), says FAX, increasing by 4.2%
- Europe to Asia, Greater China spot rates currently sit at $1.2 (100-3000kg), says FAX, decreasing by 2.5%
That’s all for this week’s update…
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