Intermodal industry organizations warn against an increase in transport prices 24/10/22
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Intermodal industry organizations warn against an increase in transport prices
Author: Lukasz Kuś 2022/10/24
The functioning of supply chains in Europe is under threat due to rising energy prices. Freight railroads face the risk of losing markets. Organizations of entrepreneurs operating in this industry made a joint appeal to EU transport ministers to take urgent action in connection with high energy prices. If there are no interventions, the costs of rail freight will soon increase significantly.
photo: PixabayThe Council of the EU adopted regulation (EU) 2022/1854 which provides for imposing a brake on rising electricity prices. Extraordinary revenues obtained by electricity producers, the costs of which have not increased significantly, will be covered by fees, and the funds obtained in this way are to be used to compensate for high prices for vulnerable consumers
As indicated by the European Rail Freight Association (ERFA), the International Union of Combined Road and Rail Transport (UIRR) and the International Union of Wagon Owners (UIP), the current situation puts freight railways, especially intermodal ones, in a difficult situation. Rail competes directly with long-distance car transport, which has not recorded such large increases in operating costs. Diesel fuel prices have increased by 70% in recent months, while energy prices have increased by 300 to 1000%. This means the risk of a "reverse modality change" from the railway back to the road, which is contrary to the assumptions of the sustainable transport policy, which assumes the support of zero-emission forms of freight transport.
Transport prices may increase
— It should be recognized that rail transport is one of the largest consumers of electricity in Europe. Rail transport is particularly vulnerable to rising electricity prices compared to other modes of transport, and the current energy crisis threatens the very existence of the rail sector and its customers. Without further action by the European institutions and Member States, rail freight prices are expected to record significant double-digit increases in the coming weeks. This will undermine Europe's modal shift objectives and undermine the functioning of critical rail freight supply chains that depend on a stable electricity price and supply, the three organizations said in a statement.
Entrepreneurs also call for an extension of the period of validity of the regulations introduced during the covid pandemic, allowing Member States to reduce or suspend charging fees for access to railway infrastructure. This possibility should be available after 2024.