CHECKINGIN
Vol. 46, No. 3
March 2026
THE MAGAZINE FOR DEMAND-DRIVEN ENTERPRISES www.inboundlogistics.com
Rusting Russian Rail Link
STAFF
Keith G. Biondo publisher@inboundlogistics.com Felecia J. Stratton editor@inboundlogistics.com Katrina C. Arabe karabe@inboundlogistics.com
PUBLISHER
F or decades, Russian rail corridors were marketed to global customers importing product from Russia as the “reliable middle ground” between slow ocean freight and expensive air cargo. However, the backbone of Russian Eurasian land-bridge logistics isn’t faring well. Russian Railways (RZD) is now on life support, even though it is owned by the Russian Federation. RZD debt has tripled since 2022, fueled by a toxic combination of high interest rates, export tariffs and a shrinking indus-
EDITOR
SENIOR EDITOR
DIRECTOR OF STRATEGIC CONTENT
Amy Roach amy.roach@thomasnet.com
Tom Gresham Karen M. Kroll Rich Osborne
CONTRIBUTING EDITORS
Keith Biondo, Publisher
trial base. The railroad recently requested $10 billion in emergency cash from the government but this is a weak patch because Russia’s National Wealth Fund is also on track for full depletion. The likelihood of a continuing rail infrastructure breakdown seems unavoidable The Russian government recently mandated that military shipments take precedence over cargo, yet another bottleneck for traditional freight. Cargo loading dropped to its lowest levels since 2003. Key commodities that once anchored the rail system—coal, timber, and metals—are in freefall. As the Russian rail route became problematic, shippers shifted to the “Middle Corridor” (Caspian Sea/Turkey). This route lacks the throughput capacity of the usual rail lines, leading to border-crossing congestion and higher spot rates. And new Ukranian “send in the drones” moves makes Caspian Sea workarounds unworkable. If you shifted from ocean to rail during the Red Sea crisis, it’s time to re-evaluate that, too. It gets worse. Locomotives suffer from a lack of imported components, and thousands of Russian freight cars sit idle or bottlenecked. The global pool of specialized rolling stock is shrinking, which limits intermodal equipment for neighboring regions. That impact goes well beyond Russian borders. Even if a route through Russia is technically “open” under current transport sanctions, its reliability is at an all-time low. And more sanctions are likely coming. Freight volumes dropped by 9.8% last year. The “iron silk road” fail illustrates how bad political decisions foster systemic and unnecessary economic and supply chain cataclysm. For global logistics planners, this isn’t just one more temporary speed bump and a waiting game for a return to behavioral sanity. Those in that value chain need permanent recalibration on East-West Russian strategies because RZD man-caused problems create a bullwhip effect on global logistics. The Russian people are known for their ability to endure years of hardship so waiting for a “return to normalcy” (read sanity) in Russian/Eurasian rail is no viable strategy. Logistics managers should consider permanent pivots. This “Rusting Link” in the global supply chain serves as yet another reminder that geopolitical stability is the silent partner in global logistics contracts. When that partner fails, the wheels of global commerce, rusted or not, stop turning.
Jeof Vita jvita@inboundlogistics.com
CREATIVE DIRECTOR
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Carolyn Smolin
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4 Inbound Logistics • March 2026
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