{"id":241182,"date":"2025-06-24T23:31:14","date_gmt":"2025-06-24T13:31:14","guid":{"rendered":"https:\/\/www.railfreight.com\/?p=63453"},"modified":"2025-06-24T23:31:14","modified_gmt":"2025-06-24T13:31:14","slug":"chemical-transport-flows-are-changing-completely","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=241182","title":{"rendered":"\u2018Chemical transport flows are changing completely\u2019"},"content":{"rendered":"

European economies are struggling in many ways. One of the underlying reasons is that energy prices are high, which is putting a strain on the profitability of businesses. Luca Senis, Road & Intermodal Logistics Director of chemical company Dow Benelux, says that chemical transport flows are changing completely as a result.<\/strong>
\n<\/span>Senis spoke as a panel participant at the ERFA \u2018Future of Rail Freight\u2019 event in Brussels on 24 June. He highlighted the obstacles that the energy-intensive European chemical industry is facing due to high prices. That seriously pushes up costs, and ultimately, prices.<\/p>\n

\u201cWe are facing very stiff competition from the USA, they are much cheaper there\u201d, Senis explained. The Americans have their own cheap sources of energy, contrary to Europe.<\/p>\n

The Europeans cannot compete, and therefore, big players in the industry have all announced closures or other negative changes to their businesses. That means that there is less production, and therefore less demand for logistics, including rail freight.<\/p>\n

However, that does not mean that demand for chemical products has declined. \u201cThe demand in the EU is still there\u201d, said Senis. As a result, transport flows are changing completely. \u201cProducts now come through ports\u201d, he added. Europe now buys chemical products from the USA and the far east, rather than at home.<\/p>\n

Rail still not safe<\/h2>\n

What follows in principle is that rail freight has not necessarily lost volumes to move, it\u2019s just that the sources of the product have changed. Yet, Senis also issued a warning to the rail freight industry. The cost of rail remains a significant issue. \u201cEverything over 300 kilometres used to be better done by intermodal. Now, that has grown to 500, 600 kilometres. The road has become more competitive there.\u201d Rail is still at a loss.<\/p>\n

Senis also sees that in his own business, at Dow Benelux in the Netherlands. \u201cRail is a critical component of meeting sustainability ambitions. But there has been a deterioration of service levels in recent years. We struggle to maintain our share of rail and intermodal.\u201d<\/p>\n

Dow Benelux\u2019s perspective is not limited to only that company. In the opening speech of the ERFA event, the association\u2019s president Dirk Stahl made the same observation. There is weak demand for transport, especially in chemical and intermodal. The market has bottomed out, with no visible upturn in demand.<\/p>\n

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Transport company Bertschi recently finished a terminal upgrade in the Rotterdam port. The company calls it a “a high-performance hub for the chemical industry and international transshipment of goods”.<\/p>\n

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