Major shipping companies on the Danube appeal to the EU for help due to deep crisis
European shipping companies operating on the Danube River appealed to the European Union for immediate intervention due to the crisis in the field of cargo transportation. About this reported the press service of the Ukrainian Danube Shipping Company (UDP), referring to the joint statement of the participants of the 66th Conference of Directors of Shipping Companies, which took place in Romania.
The main issue on the agenda of the conference was overcoming the deep crisis in the industry. Due to a sharp drop in traffic volumes and lower freight rates, the largest shipping companies are operating at a loss, and the financial reserves accumulated in 2022-2023 have been exhausted.
The companies emphasize that the current situation on the Danube shipping market is even worse than during the global financial crisis of 2008.
The UDP explains that the problem is not only that Ukrainian grain exports have partially returned to the ports of Odesa. The Danube industrial cluster is undergoing gradual degradation. High energy prices, increased environmental requirements and reduced demand make the situation much more complicated. For example, ISD Dunaferr has closed in Hungary, Liberty Galati is experiencing difficulties in Romania, Voestalpine in Austria is shutting down one of its blast furnaces in Linz, and US Steel in Kosice, Slovakia, is operating at partial capacity.
In addition, in the last two years, alternative logistics chains have emerged that have supplanted river transport, especially in the key port of Constanta. Most containers, about 95%, are now transported by rail. Instead of restoring volumes, Constanta plans to increase tariffs by 20% from next year, which will further complicate the situation for river transport.
Shipping companies call on the European Union to take immediate measures to avoid further deterioration of the situation in the field of Danube shipping.
