European rail carriers will raise rates by 20-50%

According to the Wirtschaftswoche German magazine, the DB Cargo, freight transport division of German national railway operator Deutsche Bahn, began to notify its customers in mid-November of an increase in rail freight rates starting from January 1, 2023.

The freight operator attributes this decision to an eight-fold increase in the price of electricity, which powers 95% of the company’s rail car fleet. After indexation, the list price will be increased by 50% for customers who do not have frame agreements for regular cargo transportation with DB Cargo, and by 20-40% for customers who have signed such agreements.

Wirtschaftswoche magazine also reports that other European rail carriers have informed of their intention to increase freight rates by an average of 20-30%.

In particular, the freight operator OBB Rail Cargo Group, which is part of the OBB Austrian state-owned company, plans to significantly increase the cost of its services from the new year. The indexation percentage has not yet been reported.

The Czech state-owned railway operator, CD Cargo, took the other operators’ lead. On its official website, the company announced an increase in carriage charges by 35% from January 1, 2023.

In Russia, freight railway tariffs will increase by about 10% from the beginning of 2023.