Energy prices reach new record high, this is how rail freight adapts
With energy prices hitting new record highs in May, rail freight carriers face new challenges to keep their costs in check. Surcharges have become inevitable, efficiency is becoming the norm and in some countries, it is more attractive to run a diesel locomotive than an electric one.
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Regrettably, “price elasticity” is high and very high. (Majority of clients, can not afford luxury of not caring about punctuality…) Ware owners that have shifted strategy to “On Demand” have got no alternative, but on road vehicles, up to 1000 km from Port…Not only capacity and utilisation of assets, but now high quality (safely predictable On Time supplies) now has to be added at the railways!