Chinese traders in Iran pivot to rail as naval shipping disrupted by war
The ongoing conflict in the Middle East has significantly impacted shipping traffic in the Strait of Hormuz, leading Chinese traders in Iran to explore alternative land and rail routes. Han Yun, a trader of small household appliances in Iran since 2023, has been traveling throughout China—from Xinjiang to Xi'an and Yiwu—to arrange rail or trucking options for shipments to Tehran. He has noted that rail capacity for May is completely booked and is now looking into June availability, with trucking as a secondary option. Currently, only Iran Air cargo services are partially functioning for maritime transport, while the demand for railway freight among Chinese traders has increased. Since returning to China in January, Han's business income has dwindled. Many are optimistic that transcontinental freight connections across Eurasia could provide a more dependable solution as disruptions continue.
Key facts
- Disruptions to ship traffic in the Strait of Hormuz show little sign of abating.
- Chinese trader Han Yun has been traveling between Xinjiang, Xi'an, and Yiwu to secure transport capacity.
- Han sells small household appliances in Iran since 2023.
- Rail slots for May are fully booked; Han is checking June availability.
- Trucking is being considered as an alternative to rail.
- Only Iran Air cargo services remain partially operational for maritime-linked transport.
- Demand among Chinese traders for railway freight has surged.
- Han's business income has dried up since he returned to China in January.
Entities
Institutions
- China-Europe Railway Express
- Iran Air
Locations
- Strait of Hormuz
- China
- Xinjiang
- Xi'an
- Yiwu
- Tehran
- Iran
- Eurasia