Chinese traders in Iran pivot to railway routes as war disrupts shipping

The US-Israel war on Iran, now past its 80th day, has severely disrupted global naval shipping, particularly through the Strait of Hormuz. In response, Chinese investors and traders in Iran are increasingly relying on railway and overland transport routes to keep their businesses operational. The China-Europe Railway Express and trucking routes across Eurasia have become critical alternatives as maritime freight remains unreliable.

Chinese trader Han Yun exemplifies this shift. Since returning to China in January, his income from selling small household appliances in Iran has dried up. He has been traveling between Xinjiang, Xian, and Yiwu—thousands of kilometers across China—to secure rail capacity. With May rail slots fully booked, he may resort to trucking goods to Tehran. Only Iran Air cargo remains partially operational for maritime-linked transport, while demand for railway freight among Chinese traders has surged, highlighting a broader pivot to overland supply chains.