DB Cargo’s financial performance in the first half of 2024 was markedly worse than in the same period in 2023. In the first six months of this year, the German state-owned operator made a loss of 266 million euros before taxes, 66 million euros more than in H1 2023 (-195 million euros). The poor performance follows some turbulent months with substantial service disruptions and goes against attempts to get the company’s troubled finances in order.

Last year was a period of moderate financial recovery for DB Cargo. Although half-year and yearly financial performance were negative, they nevertheless improved compared to 2022.

The company hoped that the relatively positive trend would continue this year, turning the tables and reducing the losses that make it one of the DB Group’s most unprofitable businesses even more. After all, that has been DB Cargo management’s target for some years already: to stop being the group’s financial ‘black hole’.

Performance indicators for DB Cargo

Deutsche Bahn assessed the performance of its cargo division as poor overall in H1 2024, underlining that “economic development remains under significant pressure.” Indicatively, DB Cargo’s punctuality reduced by 2,1 per cent compared to H1 2023, while cargo volumes and transport performance also followed a downward trajectory.

Specifically, DB reports that the volume of transported products dropped by 10,2 per cent–from 103,5 million tonnes in H1 2023, to 92,9 million tonnes in H1 2024. Respectively, transport performance declined by 7,6 per cent from 38.644 million tkm to 35.699 million tkm. DB cited multiple reasons for the slowdown, including GDL’s strikes, unfavourable weather conditions, and, interestingly enough, the “construction volume on the rail network as well as infrastructure disruptions”.

Simultaneously, the company revealed some changes in its workforce, with approximately 800 employees leaving DB Cargo over a year.