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Sompo Japan Insurance Inc. will set the compensation amount to the equivalent cost of air transportation, and the maximum compensation for each delay will be 500,000 yuan ($72,000).

The agreement will be signed during Japanese Prime Minister Shinzo Abe's visit to China. The cooperation marks part of the efforts for both countries serving the third-party market.

Cross-border freight train delays often take place due to customs clearance procedures and at railway stations. If the delay is long, the owner will have to choose alternative means of transportation, such as by air.

Chinese and European railways provide services to about 50 cities, and operating trains in 2018 are likely to exceed 5,000.