Rail Freight Trend Analysis Europe Market Intelligence

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Rail Freight Trend Analysis Europe Category Intelligence

Report Coverage

Market Share of Major Rail Freight Operators - Europe
Impact on the Freight Rate

Rail Freight Trend Analysis Europe Market Trends

Category Intelligence on Rail Freight Trend Analysis Europe covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

Table of contents

Executive Summary

Market Trend of Rail Freight Transportation – United States

Cost of Operation – Rail Cargo Service in United States

Inland Rail Freight Transportation – East Bound

Inland Rail Freight Transportation – West Bound

Analysis of Top Rail Cargo Operators – Europe

Cost of Operation – Rail Cargo Service in Europe

Market Analysis – Europe Rail Freight

Pricing Model of Asia – Europe Rail Trade

Intra-Europe Rail Freight Rates

Best Practices – Asia to Europe Rail Freight Transportation

Latest Developments – Rail Freight Market

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Industry Outlook & Drivers

Market Trend of Rail Freight Transportation – United States

Fuel price for rail freight transportation started to increase after the historical low rates in Q1-2016, price index of US railroad fuel has experienced more than 50 percent increase year till date(Dec-2016)
In the overall cost of operation, fuel component has increased by 2-3 percent in Q4-2016 compared to the previous quarter, which is estimated to decrease in the subsequent quarter by 1-2 percent

analysis-rail-freight-trend

Rail Freight Cost Index

In Q1-2017, despite drop in labor and depreciation cost involved in rail freight transportation, overall cost of index has increased by 1.54 percent (Y-o-Y)
With expected spike in wage rate and equipment rental and maintenance overall cost index for rail freight transportation is likely to increase in the next one year

Supply and Demand Balance

In 2016, rail freight volume decreased compared to the previous year majorly due to drop in volume of petroleum products moved to the south eastern region.
However, demand for rail freight is majorly backed by raising rail freight volume of food grains, farm products, metallic and non-metallic minerals in the last one year
Demand for rail freight is expected to gradually increase with growing demand for shipments such as chemical, grains and nonmetallic minerals from the major origin points in Dallas, Los Angeles and Chicago

Cost of Operation – Rail Cargo Service in United States

Overall cost of operation for rail cargo service has decreased by 1 percent.
Drop in major cost components such as labor and depreciation by 2-3 percent and ~1 percent respectively has led to downward trend in overall cost of operation.
However, minor cost components such as equipment rental, material and suppliers as well as interest expense continue to increase with marginal impact on overall cost

Analysis of Top Rail Cargo Operators - Europe

In Europe, major rail cargo operators continue to sustain in the strong trucking dependent market environment. After weak demand for the rail freight transportation with less than 1 percent market growth in terms of volume, major cargo operators are starting to consolidate volume with the help of freight forwarders in the region.
China – Europe rail trade has been one of the major boost for the rail cargo operators with more shipments from hi-tech, fashion retail, electronics and chemicals moving from the consolidation point in Far East China to Western European countries.
Top three operators are trying to increase the market share by increasing the frequency of schedule within Europe and China-Europe schedule with DB Schenker, SNCF and PKP cargo being more dominant in terms of volume

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