Rail freight operators concerned about high energy prices in Hungary
The increase in electricity prices in Hungary has led the freight operator METRANS to completely abandon the calculation of rates for 2022.
“An unpredictable rise in traction prices could lead to more expensive tariff bids,” the rail freight company said in a statement. METRANS was shocked by the rise in traction prices in Hungary.
In other rail freight markets, rail carriers also face similar challenges. However, the main problem for METRANS is that it cannot stick to its original quotations for its customers and will have to recalculate its prices at the end of January. Energy prices are not new.
Many railroad businesses and operators have to deal with skyrocketing rates that seem to threaten their future and development. However, the situation looks like the market needs to get used to it.
METRANS was aware of a possible increase in traction prices of 300 percent or more from the Hungarian infrastructure manager MÁV Zrt.
Even before Christmas the Hungarian Railway Association Hungrail warned that higher electricity prices in the country could also lead to a 25-30 percent increase in freight rates. In October 2021, when the electricity price crisis peaked, METRANS shared with its customers some of its pricing calculations for 2022.
“These calculations informed customers of a 10 percent price increase,” the company explained. However, much higher electricity tariffs have left the company out of calculations as it will have to apply even higher tariffs than originally anticipated.
“We are currently negotiating with the government authorities, the Hungarian infrastructure operator MÁV, and the result is still unknown. We only received notification that additional information will be provided in January 2022. Based on this, we would like to inform our clients that we will keep all tariffs and conditions for 2022, as they were proposed and discussed, until January 31, 2022, ” the company said in a statement.
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