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Energy crisis on tracks
Hope seemed to flicker after the Pandemic, but it seems to have faded quickly as we are in the third great energy crisis. The current economic situation, the post epidemic crisis, the war and the inflation that has been the consequence of it all are affecting our life and the rail transport too. Despite this we at the PSP Cargo Group Romania we preserved our mentality and quality, we continue to face situations with a positive attitude. By staying the same way, with your trust we can get through these rough times.
Firstly, we have the follow-up of the coronavirus, because in the pandemic many economies have shut down. During this period, consumer habits have changed, in response to this, the fuel producers stopped drilling for oil, and they cut back on natural gas production, they even closed coal mines. Even though the economies in this year have roared back to life, its speed and its unexpectedness caught the entire world off guard.
The biggest increase in the EU is noticeable at the prices of fuel, this making the transports on roads, waterways and in the air more expensive. In 2021 it has already exported less gas than before for economic and political reasons. There is a gas shortage because of the war in Ukraine against Russia. As a response to the war, other countries are unwilling to deal with Russian oil for fear of punitive measures, which leads to a logistical crisis.
The upside of the disaster that is now unfolding in the world is that these situations reduced the market, and forced it to the usage of rail transport, which is second in terms of volume and efficiency. More goods are transferred from road to rail as there are fewer restrictions on traffic, and in the great uncertainty, it is the less uncertain. Especially, looking at the current situation, shipments can be more easily blocked, particularly if they are delivering abroad and have to pass through an area which is affected by war. Some things take priority in this situation, such as food. Because of these factors, deliveries can easily get stuck somewhere causing further delays. An additional advantage of our company is that we can transport hazardous materials, and it is also faster and safer transporting by trains. The downside for us is that the circumstances are not as predictable as they used to be in terms of prices, neither because of inflation nor because of the economic crisis. The railway junctions are also very congested due to the transport of weapons.
PSP Cargo Group Romania meets the market demand by increasing the number of wagons and storage capacity. At the same time, we try to stay stable, and plan ahead to manage situations so that everything runs smoothly, the staff is safe and the clients are satisfied. In the longer term we are also more economical which is very important right now, especially as electricity is up 153% and diesel up 40 %. Our hands are tied but we try to do the best we can do.
Let us be, if you want, each other’s certainty in uncertainty. Contact us if you need any of our services.
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