MB Global Logistics Tracking

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Congestion and conflict of resources create barge surcharges Majority of barge costs are caused by congestion and resource contention

The cost of barge transportation in Europe has risen by 150% because of the hinterland congestion and the competition for its transport capacity especially in light of reduced Russia’s gas supply. Contargo raised its emergency surcharge for €10 to €25 per transport of full or empty containers, on top of the difficulties that shippers experience during days of Rhine closures.

Contargo reported long-standing severe congestion in rail infrastructure and inland waterways, in particular rail, because of low water levels on the Rhine River, which intensified competition for scarce transport space among coal and grain cargos. Rain was seen as a temporary relief to the water levels, which enabled the water drainage for more barging. Still, most of them were under-optimal, hence creating more congestion.

Barge users today, hence, face a lot of time wastage and cumbersome in that their many and large shipments need to be better combined and packed in one barge efficiently. Contargo is in the process of creating additional capacity for these problems. Still, the general lack of available space for cargo remains a problem, mainly due to the increasing transport of coal.

Indian Railways is enhancing its freight transport operation.

In a recent announcement, Indian Railways Minister Piyush Goyal pointed out that the railways were able to accomplish 200 long-delayed infrastructure projects necessary during the pandemic, including a record raising of the freight train speeds. Thanks to these combinations, Mumbai to Guwahati cargo transport has been cut down to about two and a half days against the previous transport of seven days.

Speaking at the recently concluded FICCI Smart Railways Conclave, Goyal spelled out measures envisaged to boost customer satisfaction, such as intelligent yards for overhauls and the use of electrical energy for better results and economic benefits. Ever increasingly emphasizing the digital value chain and trends geared toward customers, Indian Railways is adapting to a competitive freight rail market.

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