Freight shipping in Russia: What Indian businesses should keep in mind

According to analytical platform ReportLinker, just over 4,558 billion tonne-kilometres of freight were transported in Russia in 2024. In this respect, Russia is third only to China and the USA. Here, we share how transport logistics in Russia work and how Indian companies can organise the delivery of goods to their Russian customers.

Any cargo, any transportation

Cargoes of all kinds can be transported in Russia: liquid bulk, dry bulk, breakbulk, package cargo, and general cargo. Road freight accounts for the highest share of freight transport by tonnage, representing 70% of all cargo carried in Russia. This is due to the high mobility and relatively low transportation costs associated with this mode of transport. Rail transport follows, accounting for 14.7%.

Structure of the freight transport market in Russia by mode of transport, 2024

Source: GidMarket

As there is no direct overland route between India and Russia, freight shipping between the two countries involves multiple modes of transport. "A significant share of container cargo from India is transported by sea to ports in southern and northwestern Russia, from where it is delivered across the country by rail or road," says Maksim Shishkov, Director of Strategic Marketing at Delo Group.

In some cases, logistics may be limited to using air or maritime transport only. Any decision will depend on the size and packaging of the cargo, transport requirements, delivery timeframes, and costs.

Air freight: fast but not for everyone

Air freight is the most expensive way of transporting goods between Russia and India and is primarily used to deliver valuable or perishable cargo. Using a direct flight will take one to two days, while a connecting flight via a third country involving transloading cargo onto another plane can take up to five days.

In Russia, only certified companies are authorised to provide air freight services. In 2024, Aeroflot accounted for more than half of the country’s air freight. Deliveries can be arranged directly with the air carrier or through a logistics operator.

Maritime transport: optimal timing, few ports

Maritime transport between Russia and India is primarily used for large cargo shipments of food products, textiles, machinery and components, construction and finishing materials, chemical and agricultural goods, precious metals, and ore.

More than 30 domestic and international operators are engaged in container shipping in Russian ports. Delivery via the Suez Canal to Novorossiysk takes up to two weeks, while shipments to St. Petersburg take a few days longer. If the route circumvents the Red Sea and passes around Africa, transit time can exceed one month. Container ships can dock only in major ports: St. Petersburg, Novorossiysk, and Vladivostok.

Rail transport: large volumes, long transit times

In Russia, railways and locomotives are managed by a single organisation. If the cargo shipper owns freight containers or leases them from a container operator, it can sign a freight contract directly with the carrier. This makes sense particularly for unimodal transport; for example, when shipping from one railway terminal in Russia to another.

Rail transport is suitable not only for heavy and oversized cargo but also for large consignments of other goods. According to Maksim Shishkov, "freight containers in Russia mainly carry chemical products, machinery and equipment, automotive components, non-ferrous metals, paper, and pulp."

Since 2022, the International North–South Transport Corridor has provided a rail link for shipping between Russia and India, though the route does include a maritime segment. The delivery time on this route is at least 35 days, making it slower than other transport options. Rail freight between India and Russia is rarely unimodal. Though the railway network spans the entire country, it is most well-developed in the European part of Russia.

For smaller consignments of goods, particularly those destined for regions without railway access, road transport may be a more practical option.

Road transport: to anywhere in the country

In recent years, the popularity of road freight transport in Russia has increased. "This is partly due to a shortage of containers, which has led to longer delivery times by rail and a market shift towards road transport," explains Dmitry Khrushchalyov, Deputy General Director for Development at Delovye Linii.  

The Russian road freight market is fragmented. The five largest transport companies account for a third of total freight volumes. Most of the market consists of small private carriers with fleets of up to 10 vehicles.

Freight forwarders, who do not have their own fleets, also offer their services. Acting as intermediaries between shippers and carriers, they essentially consolidate available vehicles without providing additional services. To eliminate unnecessary intermediaries and reduce costs, it makes sense to arrange deliveries with large transport and logistics companies.

In-house logistics or outsourcing?

Various factors affect international logistics, including situations like the Red Sea crisis or incidents in the Suez Canal. Freight transport between Russia and India has its own unique characteristics.

For instance, the popular eastern maritime route (Vladivostok – Chennai) depends on the carrying capacity of Russian Railways’ Eastern Polygon, which is quite limited. "Similarly, the North–South Corridor runs through Russia’s Unified Deep-Water System and suffers from several bottlenecks. These infrastructure challenges still need to be addressed," says Vitaly Chernov, Head of Analytics at IAA PortNews.

All of this impacts delivery times and complicates logistics. Nonetheless, trade between Russia and India is growing. More and more companies engaged in international trade are turning to logistics operators for their shipping needs. "Most requests come from clients in sectors such as industrial equipment, spare parts and components, and light industry, including clothing and textiles," explains Dmitry Khrushchalyov. "Working with logistics operators allows companies to reduce costs and optimise product delivery."

Turnkey services

The Russian market includes 2PL operators that can organise freight transport for Indian companies on specific routes. If customs clearance also needs to be outsourced while reducing the number of intermediaries, working with 3PL operators might be a better option. Additionally, 4PL providers operate in Russia, offering comprehensive support for international commerce, including the selection of potential business partners, assistance with foreign trade deals, and warehouse inventory management.