Rail freight considers itself plagued by an unlevel playing field with road-based competitors. Trains carry the burden of disproportionately high costs, making trucks the favoured option for shippers in many cases. However, Europe may take steps towards a more level playing field – whether intended or not.
Lithuanian logistics company Girteka released an analysis on the state of the European trucking market. Its main message is that volatility is now structural, but Girteka also highlighted the growing pressure caused by regulations.
One such regulation is the expected introduction of a distance-based charging system for trucks in the Netherlands. From July onwards, trucks will need to pay per kilometre driven. That will sound highly familiar to rail operators, who remain in constant uncertainty about the height of track access charges in the near future.
The new Dutch road charge system replaces the Eurovignette – a one-time payment for a period of up to a year. Other countries are expected to follow the Dutch example, according to Girteka. Some European countries already have similar systems in place.
A growing cost factor
The Lithuanian company points out that toll and road charges are no longer a marginal cost item. “In key European markets, CO₂-linked and distance-based systems have pushed tolls to around 14% or more of total freight costs on average – depending on a country – and up to roughly 23% on certain single trips, with further increases expected as distance-based charging systems expand.”
It is definitely not the time of year to rejoice in the misfortune of others (competitors), but more equal treatment of rail and road transport is likely to be welcomed by the rail freight industry. The introduction of distance-based charges could improve the competitiveness of rail freight on longer distances and induce shippers to consider trains.