With Germany caught up in frequent rail strikes, the sector has been facing difficulties with the transportation of goods. The branch organisation of the German chemical industry (VCI) sounded the alarm bells ahead of last week’s 24-hour strike. VCI warned that the industry cannot cope with more strikes. RailFreight.com reached out to VCI and chemical giant BASF to better understand how the industry has been dealing with these strikes.

The head of VCI, Wolfgang Große Entrup, said in a recent statement that the German chemical industry cannot afford any more rail strikes, adding that “such actions will be even more taxing on the already stagnating German economy”. The branch organisation called upon rail workers’ union GDL and Deutsche Bahn (DB) to come to an agreement on working conditions. Fortunately, an end is in sight as GDL and DB announced that a deal seems to be close, ending the strikes for now.

Compensation is an issue

Answering questions from RailFreight.com on how the industry has been responding to the challenges, VCI explained that the German chemical industry has learned from previous strikes. While companies have been well-prepared, “the restrictions and delays in rail logistics caused by the strikes are difficult to compensate for,” suggesting that the complications resulting from the strikes cannot be overcome entirely.

As rail workers’ union GDL stated earlier that they no longer intended to announce strikes more than 48 hours ahead of their start, VCI says that the unpredictability of the strikes presented a major obstacle. “Spontaneous waves of strikes are difficult to handle logistically. We don’t know where, when and how long the strikes will last. It is hardly possible to shift transport to lorries or barges at short notice. Task forces in the companies have already been rescheduling their freight since last week. Many are also building up storage capacity as quickly as possible,” says VCI.

According to data from the branch organisation, rail strikes can potentially affect up to 15 per cent of all cargo transported for the industry. German chemical companies transport approximately 56,3 million tonnes of chemical in 2022, of which 15 per cent was transported via rail. On a daily basis, the industry transports 155,000 tonnes of chemicals, of which 23,000 tonnes go via rail. “Rail is of great importance for the industry’s logistics when it comes to the supply of raw materials and the dispatch of intermediate and finished products,” says VCI.

Solutions of the world’s largest chemical producer

RailFreight.com also reached out to BASF, the world’s largest chemical producer. BASF agrees with the assessment that the strikes harm the chemical industry. The company uses rail for 25 per cent of its goods transportation at its production site and headquarters in Ludwigshafen. This makes it a relatively important transport modality compared to the industry’s average. BASF needs rail for the transportation of lime, sulphur, acids, and various organic compounds. While the chemical producer declined to comment on the impact of the strikes on its financial situation and the volumes transported, the company explained how it seeks to deal with the strikes.

In order to mitigate the effect of the strikes, BASF attempts to pre-load goods, shift goods to other modalities or to re-schedule deliveries. However, as VCI explained, this remains difficult to do on time because of the unpredictability of the strikes. Second, BASF has block trains running between its major European production sites in Ludwigshafen, Antwerp and Schwarzheide. The operation of these routes is provided by various railway companies. According to BASF, they are designed to guarantee continuous operation during strikes or to enable switching to alternative companies.

Lastly, BASF has its own railway company that can provide local transportation in the vicinity of its major production facilities. “For our Ludwigshafen production site in particular we prioritise rail transports, make use of our own locomotive drivers when necessary, and use the flexibility of our container storage set-up to buffer and mitigate impacts where possible.”

Also read:

• DB vs GDL: strikes end, agreement in sight
• German chemical industry says it is suffering from continuous rail strikes
• GDL to stage 24-hour strike starting tonight