Container deliveries to Far East still a problem, shipments shifting to planes, trucks - CBR

MOSCOW. July 18 (Interfax) - Containerized freight traffic is switching to other forms of transport due to ongoing problems with railway shipments of containers from western Russia to the country's Far East, the Central Bank of Russia (CBR) said in a report on the regional economy.

"Some businesses reported ongoing problems with delivery of containers from central regions of the country by railway and reorientation to more expensive delivery by automobile and air transport," the report said.

"The situation with container shipments improved somewhat in May-June thanks to the prioritization of shipments of food and socially important goods eastward at the end of April 2024. However, the problem of railway congestion remains significant for businesses. Companies in all macro-regions reported significant delays in freight deliveries, which had a negative impact on their business," the report said.

The CBR also reported growth of costs in macro-regions amid rising prices for freight shipping. The growth of prices for shipping freight on the main types of transport accelerated somewhat in April-May and amounted to 11.7% year-on-year.

The growth of freight rail operators' expenses on labor, repairs and leasing, combined with the increase in prices for rolling stock itself pushed up lease rates for freight cars.

"Companies reported a substantial increase in independent operators' rates. Furthermore, due to the increase in freight delivery times, companies noted growth of warehouse expenses. Many producers partially transferred rising logistics costs to the price of finished products," the report said.

"In addition, due to difficulties planning delivery times by railway, many companies were forced to reorient freight delivery to more expensive automobile transport, which also led to the growth of costs," the CBR said.

Transshipment of containers in the Far East reached a nine-month high in May due to growth of imports and domestic shipments, the CBR said.

It was reported earlier that prioritizing railway shipments of oil products and coal reduces the accessibility of container shipments to the Far East.