2017 Integrated Report – Departure into a new era

Freight transport and logistics

With DB Cargo and DB Schenker, we are positioned in the freight transport and logistics market as one of the world’s leading logistics services providers. The demand for international freight transport services is rising owing to the ongoing shift towards cross-border production structures and flows of goods and the continuing trend for the outsourcing of logistics services. We aim to make use of this opportunity to maintain and/or expand our excellent market positions. DB Cargo is Europe’s leading rail freight service operator, with a presence in all major markets. We use our own European production network for this. In this network, national and cross-border transport is conducted efficiently and in a customer-oriented and environmentally friendly manner. DB Cargo is focused on the automotive, building materials, industrial and consumer goods, chemicals, iron, coal and steel and combined transport industries. DB Schenker offers European land transport, global air and ocean freight, comprehensive logistics solutions and global supply chain management (SCM) in contract logistics. With a broad customer base, we have a future-oriented position in the high-growth logistics markets. We have especially strong market positions in the automotive, high-tech and industrial and consumer goods sectors. Noting that customer requirements are changing, we extend our range of services by entering into cooperations – for example with courier, express and parcel service provider GLS.

German road freight transport: still posting above-average growth

German freight transport market
(% based on volume sold)

Growth rate

Market share

2017

2016

2017

2016

Rail freight transport

~–0.0

–0.4

~17.4

17.7

     DB Group

~–1.6

–3.4

10.1

10.5

     Non-Group railways

~+2.5

+4.3

~7.3

7.2

Non-Group railways

~+2.6

~+1.4

~71.7

71.1

Inland waterways

~+0.5

–1.8

~8.2

8.3

Long-distance pipelines

~–3.0

+5.9

~2.7

2.9

Total

~+1.8

~+1.0

100

100

Figures for 2016 and 2017 are based on information and estimates available as of February 2018. The market share for each mode of transport has been rounded.

The performance increase of the German freight transport marketcontinued to rise in 2017 compared to the previous year, under the impact of stronger economic stimuli. Domestic demand remained robust, combining with dynamic foreign trade to generate a good order backlog and increasing transport requirements – which, however, was reflected first and foremost in continuing above-average development in road freight transport. Though rail freight and inland waterway transport benefited from stronger stimuli from the steel industry, their development was hampered by declines in the bulk segment – coal, for example – and by special factors such as disruption on the Rhine Valley route, storms and further incidences of low water.

Growth in international markets

International freight transport and logistics markets(%) 

Growth rate

2017

2016

European rail freight transport (based on tkm)

+3.0

–2.0

European land transport (based on revenues)

+3.8

+2.4

Air freight (based on t)

+10.0

+1.6

Ocean freight (based on TEUs)

+4.8

+1.3

Contract logistics (based on revenues)

+3.0

+3.0

Figures for 2016 and 2017 are based on information and estimates available as of February 2018.

The international freight transport and logistics marketsrelevant to our business posted very positive development in 2017.