Problems in freight transportation in Germany are dragging its economy down

The English translation of the provided Ukrainian text is:

Germany’s Logistics Problems Exacerbate Economic Downturn, Potentially Leading to Loss of EU Leadership. The situation has been worsened by falling river levels, preventing barges from operating fully, an underfunded railway system unable to increase its capacity, and seaports still congested with cargo.

According to Bloomberg, the Rhine River’s water levels have recovered in recent days, although the transportation of fuel and other goods had nearly come to a standstill. Consequently, the climate crisis has merged with the energy supply crisis. Industrialists are worried about how they will transport their resources and finished products via the semi-ruined railway. This does not bode well if Europe’s largest economy wants to avoid a recession this year.

“We are in a situation where the infrastructure is extremely difficult,” stated German Transport Minister Volker Wissing last week, from the business-friendly Free Democratic Party.

Germany’s largest oil refinery had to reduce production at its plant in the Rhine region due to low water levels, highlighting the severity of the logistics crisis on Germany’s key domestic route.

The vast majority of cargo is transported by trucks on highways and bridges, which are also underfunded, and freight transport in Germany largely depends on connections between roads, railway lines, and ports.

Germany’s railway networks are in historically poor condition because a lack of personnel, insufficient investment, and the presence of construction sites are slowing down the work of carriers, stated the German Freight Forwarding Association.

Coal Delivery

As Germany prepares to import 35 million tons of coal this year, compared to 27 million tons in 2021, freight trains are unlikely to compensate for the costs of barges if the Rhine has to be closed to shipping, reports the German Coal Importers Association. Railways transport significantly less than barges, making them more expensive for buyers.

“Too little has been invested and modernized,” said Wissing.

In addition to the low water levels on the Rhine at critical times, Wissing and his coalition partners are considering a law that would prioritize the transportation of coal and other energy resources by rail, for example, forcing grain from Ukraine to wait for shipment. This will help diversify the energy needs of the German economy to be less dependent on Russian gas in the future.

Meanwhile, ships are accumulating in German ports, complicating sea transport. According to the Kiel Institute for the World Economy (IFW), 24 container ships are currently awaiting clearance in the German Bight. Congestion is significantly impacting trade with Asia. Another 20 million tons of grain still need to be transported from Ukraine, equivalent to approximately 570 sea loads.

We remind you that ETS company carries out freight transport Ukraine — Germany / Germany — Ukraine.

We provide the following services:

• international freight transport
• oversized transport
• refrigerated transport
• groupage cargo transport.