1. Market Research
  2. > Transportation
  3. > Logistics and Freight Market Trends
Global Rail Freight Transportation Industry

Global Rail Freight Transportation Industry

  • July 2020
  • 139 pages
  • ID: 5820088
  • Format: PDF
  • Global Industry Analysts

Summary

Table of Contents

MARKET IMPACT SURVEY - COVID-19 & LOOMING RECESSION

Timely market intelligence is paramount in these uncertain times!

We launched an impact survey to update this project with timely insights during 2020. Update frequency will depend upon evolving market conditions and executive opinions. Our participants are executives driving strategy, marketing, sales and product management at competitive companies worldwide. All updates during the rest of the year are complimentary to clients!

As COVID-19 Outbreak Escalates, Logistics & Freight Transportation Bites the Dust

Except for the transport and delivery of much-needed food essentials and drugs, medical equipment, and personal protective equipment like masks, gowns, gloves, logistics and cargo transportation industry is bearing the brunt of the pandemic`s wrath. COVID-19 has metamorphosed into the most severe public health and economic crisis of the 21stcentury. Trade bans, import/export restrictions, travel restrictions, supply chain disruptions, and sealing up of regional as well as international borders have severely restricted movement of people and all non-essential goods and services. Global trade in the month of April 2020 declined by -2.9% as compared to the -2.2% in March and -0.5% in February of the same year. The closure of manufacturing plants as part of the lockdown restrictions imposed worldwide has interrupted inland logistics. With first and last-mile connectivity impacted, the industry stands significantly crippled. Although the pandemic has brought online e-commerce platforms into the spotlight, movement restrictions have impacted urban logistics. The magnitude of the crisis can be put into perspective by the fact that global capacity in the logistics sector has declined by 65% to 75%. The massive drop in capacity is pushing up freight rates by over 6% to 9%. Manpower shortages at airports, seaports, warehousing and trucking sites are additionally aggravating the already existing pain points. The economic recession which is expected to be more devastating than the great recession of 2009 will wield an additional blow to the industry which is already reeling under the aftermath of the lockdowns. Transportation and logistics will bleed the highest Gross Value Added (GVA), dealing the biggest blow to overall GDP.

An Economic Barometer, Rail Freight Declines as Recession Sets In

Like the rest of the transportation industry, Rail Freight Transportation is also feeling the heat and pain of the deteriorating economic climate. Against the backdrop of a hurting drop in rail cargo amid transport route restrictions, the global market for Rail Freight Transportation is downward revised to a projected US$213.9 billion for the year 2027 trailing a CAGR of 4.3%. The market in the year 2020 will slump by -7.7%. Economic conditions have a direct correlation to movement of goods and the rail freight sector has long been the barometer of economic conditions. Diminished rail traffic numbers is a common thread cutting across countries worldwide. While lockdowns and interstate restrictions have interrupted rail movement, the virus led recession and its induced decline in manufacturing output is triggering huge traffic losses in terms of cargo loading. Shrinking of demand for bulk commodities is the biggest challenge faced by the market. Loading of coal to steel plants and thermal power plants has declined significantly as construction and energy industries collapse under the weight of plummeting energy consumption and halted economic activity. With new construction projects put on hold or postponed cement and clinker loading has also taken a hit.

What Will It Take for the Market to Recover Growth Post COVID-19?

Across countries, railroads are downsizing and closing yards as idle locomotives push up revenue losses. In India, the country which imposed the strictest lockdown in the world, freight trains are plying at less than 55% capacity. Dealing the biggest blow was the 30% reduction in coal-based power generation in the country. In the United States, the over 45% decline in intermodal transport and disruptions in the busiest leading container ports including California`s Long Beach and Los Angeles ports have taken their toll on rail freight. In Europe, the worst hit by the pandemic, a possible investment crisis can likely disrupt the regular rhythm of rail traffic even in the long-term. Ongoing EU?funded rail investments have already been hit and construction works under existing contractors have either stopped or are delayed due to lack of timely delivery of railway equipment and rolling stock. European rail freight companies are heavily dependent on the development and management of rail infrastructure. Boosting international rail links, especially extending major trans-European transport routes to neighboring countries will remain crucial for long-term growth in rail freight in the region. In the post COVID-19 period, rail freight transportation will require more than a return to economic normalcy to regain growth. Technology will remain in the spotlight and stakeholders in the rail supply industry will need to adopt digital solutions and innovative technologies that offer seamless connectivity to operate safely and with efficiency.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.
Ahmad helps you find the right report:
Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

FAQ
  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at researchadvisor@reportlinker.com to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - researchadvisor@reportlinker.com or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.

ref:plp2020

Reportlinker.com © Copyright 2020. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on