The latest quarterly freight figures have some pleasing headlines. However, beyond the standfirst of growth in domestic intermodal and an upturn in biomass movements, there’s a less rosy picture in the big ticket items of maritime movements and construction materials. The two dominant sectors moved in opposite directions, amounting to an overall fall in freight moved.
The UK government-backed Office of Rail and Road (ORR) has just published its quarterly review of rail freight performance. The upbeat figures from certain small sectors go some way towards overshadowing a generally static market. Some seasonal swings make comparisons less accurate month to month. The Winter quarter of 2023 is significantly up on the corresponding figure for 2022. However, that in itself was the second lowest of the decade so far.
Five of the commodity groups saw a rise, but…
A statement from the ORR accompanying the data for the period says that the total volume of freight moved was 3.85 billion net tonne-kilometres in the latest quarter (1 October to 31 December 2023). “This was a four per cent increase on the same quarter the previous year”, says the report. “Five of the commodity groups saw a rise in freight moved volumes compared with the same quarter the previous year. Intermodal maritime decreased by five per cent in the same quarter the previous year.
The commodity with the largest share of freight moved remains maritime intermodal. It accounted for over a third of all freight moved by rail. However, the 1.31 billion net tonne kilometres of intermodal maritime is the lowest October to December quarter for ten years. Container volumes through the major ports have been generally static or slightly down. However, the end of 2023 was as bad as any since 2013.
Challenging current market conditions
Rail Partners, the influential group that lobbies for expansion in the sector, met the figures with some disappointment. The performance does not bode well for the government’s stated ambition to radically grow rail freight share in the logistics market. Nor do the figures offer any real encouragement to the group’s own recently published report, ‘Freight Britain: An engine for green growth’.
“The autumn period is usually the busiest time of year for freight operators. Businesses prepare for Christmas and with construction activity in full flow”, said Andy Bagnall, their chief executive. “These latest ORR figures underline how challenging current market conditions are for the rail freight sector. The UK government has set a target to grow rail freight by no less than 75 per cent by 2050. To deliver that target, and secure the well-established economic and environmental benefits of rail freight, it is essential to create the right conditions for growth. Crucially, we must address the widening gap between the cost of moving goods by rail and by road if we want to make rail the mode of choice for prospective freight customers.”
What’s gone wrong, and who’s on song
Elsewhere in the statistical release, there was a worrying trend towards unreliability in the sector. The proportion of freight trains arriving within 15 minutes, as measured by the ORR Freight Delivery Metric, was 87.8 per cent. This is the second-worst level of freight performance between October and December since the time series began in 2013.
Operators overall recorded 7.66 million freight train kilometres in the latest quarter. That was four per cent higher compared with the same quarter the previous year. Freightliner administered some loads differently, but overall their position is still among the dominant three load movers. GB Railfreight rose to top of the pops for distance moved, while DB Cargo slipped back to just under two million kilometres moved. Two niche operators saw whopping increases in freight train kilometres. Devon and Cornwall Railways, better known as DC Rail, almost doubled its tally, while Colas Freight upped their game by 25 per cent.
We’re still building back better
Distance moved is not necessarily a measure of market share. It is more of an overall snapshot of rail freight’s ability to move large loads over varying distances. For example, the construction industry often relies on rail to move huge volumes along the length of the country. That’s primarily driven by the location of raw materials in the north of England and the demand in the south. Construction made up just under a third of all freight moved in the quarter, representing the second-largest share of all freight moved. Freight volumes in this sector increased by
11 per cent, reaching 1.21 billion net tonne kilometres, the highest October to December value since the time series began in April 1998.
The HS2 high-speed rail project continues to drive construction growth, reflecting the vast scale of the civil engineering endeavour, even though government cutbacks have curtailed its scope. There has, for example, been an increase in tunnelling spoil movements from Willesden, where work continues on the core London to Birmingham section.
We’re still getting greener too
The ORR also remarks on the increase in domestic wood fibre board manufacture. They say that has led to more movements of timber. Also, in a related field biomass volumes increased by 30 per cent. That was was the second largest percentage increase of all commodities. Biomass is separated out in the stats because of its special handling requirements. Loads accounted for 0.28 billion net tonne-kilometres. Extra capacity in the commodity is put down to demand from the power generation complex at Drax in Yorkshire.
We may be entreated to go green, but oil and petroleum volumes rose by six per cent. There have been additional tonnages of jet fuel moving from the Isle of Grain import terminal in Kent to Heathrow Airport on the west side of London as the number of flights continues to grow. However, we may all be doing our bit to offset our jet set habits. We may be recycling more at home. Domestic waste saw a decrease of 23 per cent. It was the lowest volume of any quarter since July to September 2018. Just like rail freight, we’re all getting more environmentally friendly.
