Shipping attention! Big job cuts at Deutsche Bahn freight
Shipping attention! Big job cuts at Deutsche Bahn freight
The German rail company DB Cargo is facing serious financial problems and is under investigation by the European Commission.agent shipping china door to door service.
The company plans to cut 1,800 jobs, a move that has drawn strong opposition from the German rail and transport union (EVG), which argues that it would "gamble" the company's future..agent shipping china door to door service.
Union president Martin Burkett said previous board members failed to come up with a viable and profitable business model, leading to the company's woes. The European Commission is investigating the company for possible market distortions and violations of state aid rules..agent shipping china door to door service.
After years of heavy losses, critics of DB Cargo argue that the company relies on subsidies from Deutsche Bahn Group and the German federal government to stay afloat.rail shipping agent
Between 300 and 450 jobs will be cut at DB Cargo's customer service centre in Duisburg, which handles inquiries across Europe. Around 1,800 jobs are expected to go across Germany. But the company called that figure "alarmist," noting that many of those jobs were transferred to wholly-owned subsidiaries rather than being cut.rail shipping agent
TFG Transfracht and RBH Logistics are both wholly owned subsidiaries of DB Cargo, which also owns 80% of Central German Railways (MEG).rail shipping agent
The head of the EVG trade union, Berkett, criticized that it was completely wrong to appease the European Commission by cutting costs, and what was needed now was a growth strategy for the future. He stressed that colleagues were victims and called on the company to find other solutions.
At present, the European Commission's action against national rail operators is continuing, including the possible spin-off of DB Cargo. This has led to speculation about the future direction of the company, whether revival or further downsizing, remains to be seen.
At the same time, the share of rail transport across Europe has continued to decline in recent years, from 60% in 1950 to 15% today. DB Cargo mothballed 24 electric locomotives last year due to rising energy costs, highlighting the challenges climate change poses to the rail transport industry.
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