Russia sees rail loading drop on an unparalleled scale

The rail freight loading decline on the Russian network continues. And it is not only continuing, but intensifying as well. In February, Russia saw an unprecedented and unforeseen decline in loading on its rail network.
February 2025 brought a noteworthy 9,3 per cent drop in loading volume on the Russian network when compared to February 2024. The loading decline is nothing new, with monthly numbers often ranging from minus 4 to minus 6 per cent, but a 9,3 per cent drop is unprecedented.

Russian media rightfully point out that leap year 2024 allowed for a bit more freight to be loaded in the month of February. The daily average decline amounts to a slightly less surprising figure at 6 per cent. Nevertheless, when compared to 2023, the decline still sits at 12 per cent – no good news for Russian Railways (RZD).

What has caused the loading crash?

It is perhaps to be expected: RZD points to external factors for the downturn. Those include changes in commodity markets and logistics. The construction sector’s reduced activity led to decreases in the loading of construction materials (-22,3 per cent), cement (-16,9 per cent), and ferrous metals (-13,7 per cent). Oil product loading also shrunk by 6,5 per cent.

Other market parties have a different explanation for the situation. They report issues such as delays in document processing for empty wagons, leading to congestion on non-public tracks and preventing the acceptance of new wagons for loading.

A source tells Russian media: “The raw materials were unloaded at the metallurgical plant, and the carrier [RZD] left the empty rolling stock without paperwork. In fact, waiting for the carrier’s decision. As a result, private tracks are clogged with cars. And there is nowhere to accept other rolling stock – for loading finished products. As a result, the client receives a convention (a ban on sending cars for ferrous metals due to the fault of the consignee).”

Excess wagons

RZD maintains that there are too many empty wagons on the network. As a result, it is making an effort to reduce their number, but that is not going swimmingly. A covered wagon owner explains that RZD is making the situation worse, rather than better. “It turns out that the carrier has fallen into the trap of its own technologies. The more it fights with the ‘excess’ fleet, the more empty cars are listed in the network.”

The practices of RZD fail to take the perspective of other operators into account. “Previously, operators could relocate the empty fleet where there was demand for it. And now the carrier simply drags them from place to place. Not to where there is freight, but where it considers it convenient for itself.” Now, with a similar working fleet size, the amount of empty wagons is actually a third higher than in the summer of 2024 – up to 800,000 from the previous 600,000.

Besides external economic factors and RZD’s battle with empty wagons, other factors are likely to be at play as well. Notably, Russia has been struggling with a locomotive shortage for a while now. Western sanctions have prevented the country from acquiring the needed spare parts, while the ongoing war in Ukraine has induced a massive labour shortage. There is not enough staff to operate or maintain rolling stock – reducing RZD’s capacity to carry freight.