TEHRAN / BEIJING – As the US-Israel war on Iran passes its 80th day and continues to paralyze shipping through the Strait of Hormuz, Chinese traders in Iran are turning to overland alternatives—railways and trucking routes—to salvage their businesses. With maritime traffic showing little sign of normalizing, the China-Europe Railway Express and transcontinental freight corridors are emerging as vital lifelines.
Chinese trader Han Yun, who sells small household appliances in Iran, has been racing across China—from Xinjiang to Xi’an and Yiwu—to secure transport capacity. “Rail slots for May are already fully booked, so we’re checking different places to see if we can get space in June,” he said. “If not, we may just send the goods out by truck.” Han returned to China in January and has since seen his business income effectively dry up. He noted that only Iran Air cargo services remain partially operational for maritime-linked transport.
According to Han, price is no longer the main concern. “We just want to secure space and move the goods out as quickly as possible.”
The conflict, which began in late February, has stalled vessel flows in the Strait of Hormuz, stranding hundreds of ships, disrupting global oil trade, and driving up freight and insurance costs—even as ceasefire talks continue.
Against this backdrop, the China-Europe Railway Express, launched under Beijing’s Belt and Road Initiative in 2013, is increasingly viewed as an alternative to vulnerable sea routes. Data from China State Railway Group shows the network expanded rapidly in the first quarter of 2026, with freight trips rising 29% year-on-year to 5,460, and cargo volumes climbing 22% to 546,000 TEUs. The network now links 235 cities across 26 European countries.
Abbas Shi, a Chinese investor who has stayed in Iran since 2024, said he too has been exploring overland shipping options. “Sea freight has basically stopped, and overland transport capacity is also extremely tight,” he said. Shi connects the Tehran Chamber of Commerce with Chinese businesses and helps Iranian companies source products from China. He believes the strait will eventually reopen, but added that overland transport is entering a “fast-growth stage” because maritime shipping carries too much uncertainty.
Cost remains a challenge. Shipping a 40-foot container by rail currently costs about US$6,600 and takes roughly 22 days—far more expensive than pre-war sea freight. Shi noted that traders are actively exploring additional land routes to ease the burden.
Throughout the interview, Shi’s internet connection repeatedly cut out. “The internet is very unstable right now,” he said. “Most of my communication with clients in China has shifted to text messages.”
The Transported Asset Protection Association (TAPA), a Singapore-based industry group, noted in a March report that the China-Europe Railway Express is playing an increasingly important complementary role along Eurasian trade routes. However, TAPA warned that railway capacity remains relatively constrained, transport costs are higher, and routes passing through Russia and Belarus may pose compliance challenges for some European customers.
Despite the difficulties, Han Yun remains cautiously optimistic. “Most Chinese traders I know believe there will be huge opportunities once the war ends because Iran is still a rare seller’s market,” he said. “We all hope we can recover some of the losses we’ve taken.”
Source: South China Morning Post (SCMP) – “How Chinese traders in Iran are keeping business afloat as war capsizes naval shipping” (Published: 2:00pm, 24 May 2026)
My Take as a Viewer
Reading this, I feel like I’m watching a real-time stress test of global trade resilience. On one hand, it’s remarkable how quickly alternative routes like the China-Europe Railway Express are being scaled up—29% more trips in a single quarter shows genuine adaptability. On the other hand, the desperation in quotes like “price isn’t even the main issue anymore” tells you just how broken the maritime system has become.
What strikes me most is the human scale behind the macro story. Han Yun isn’t a shipping conglomerate; he’s a small appliance trader watching his income evaporate because a war 4,000 miles away has made the Strait of Hormuz a no-go zone. That he’s now racing across China just to book a rail slot—and may still end up paying $6,600 for a container that used to cost a fraction by sea—is a vivid reminder that global conflicts hit ordinary merchants and consumers long before peace deals are signed.
I also find the internet detail oddly chilling. Shi’s connection cutting out repeatedly, forcing him to switch to text messages, is a quiet but powerful indicator of how deeply the war has degraded everyday infrastructure in Iran. It’s not just bombs and rubble; it’s unstable comms, stranded ships, and traders texting like it’s 1999.
That said, the article leaves me with a cautious, uncomfortable question: Are we over-rotating to overland routes that are themselves fragile? TAPA’s warning about routes passing through Russia and Belarus is no small footnote. If the war expands or sanctions tighten, those rail lines could become political chokepoints just as hazardous as Hormuz. So while I admire the ingenuity of Chinese traders and the railway network’s rapid expansion, I don’t see a permanent solution here—I see a very expensive, very crowded Band-Aid. And that makes me nervous for what happens when the next disruption hits.
Source excerpt (rewrite this):
Chinese traders in Iran keep business afloat as war capsizes naval shipping South China Morning Post