German rail freight shippers grapple with soaring costs post-subsidy cut

Posted on April 1, 2024   |  

DB Schenker's freight division faces a potential breakup, causing concerns for railway shippers in Germany.

Maersk announces a €9 ($9.73) per TEU rail infrastructure surcharge for shipments to or from Rotterdam due to increased vendor costs.

Trassenförderung, a key state subsidy supporting rail paths for freight trains in Germany, undergoes significant reduction.

Vendors had factored Trassenförderung subsidy into 2024 pricing strategies but now introduced surcharges to offset financial losses.

Despite expectations, the Trassenförderung subsidy sees a €120 million cut instead of a near-halving of €350 million subsidies.

Maersk's surcharge adds uncertainty for cargo owners in European rail freight, crucial for the EU's net-zero ambitions.