Houthi attacks against Red Sea shipping are driving freight to the rails, with Dimerco citing a 30% increase in volumes against the same period last year.

Ahead of Chinese New Year, branch manager of the multimodal operator’s Xi’an office, Andy Luo, said that inquiries for rail freight bookings had surged 40% in the preceding two months, and that for certain services this was generating a wealth of new business.

A spokesperson for the company told The Loadstar: “Less-than-container load rail freight has experienced a sharp increase in volumes, 30% in January compared to last year.

“For full container loads, we have received many inquiries, but this has not yet translated into a substantial increase in new business. But it is important to note rail freight costs, currently around $6,000-7,000 are close to the increased rates of ocean, which are about $5,000.”