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23. February 2021The credit insurer Credendo sees European road freight transport strongly negatively affected by the Corona pandemic. In 2020, a real decline of about 7% was observed. The accompanying circumstances had a greater impact than the pandemic itself. The individual sectors were affected differently.
(Wiesbaden/Bruxelles) The first major disruption occurred at the beginning of the pandemic in March 2020. With the lifting of border closures and the return of business activity, the situation stabilized in the summer. The renewed lockdown at the end of the year has now posed significant problems for the industry once again. The experts at Credendo see clear differences in the types of goods transported. Trade in pharmaceutical and IT products, for example, proved to be very robust.
Different effects influenced prices. Disruptions at the borders, which led to long queues and delays, had a price-increasing effect that was factored into freight rates. Nevertheless, prices were overall under significant pressure due to declining demand. DHL Freight, for instance, recorded a revenue decline of 8.7%, while freight volume only decreased by 0.9%. Partially, the falling revenues could be compensated by the low diesel price.
Problems Remain at Least in the Short Term
In the short term, Credendo still expects problems due to the pandemic and possible further restrictions in cross-border freight transport, as recently observed at the border between Germany and the Czech Republic. Overall, as vaccination strategies gradually take effect, a recovery is expected in 2021, but the losses of the previous year will not be able to be compensated.
The diesel price should remain relatively low, but on average likely higher than in 2020. Logistics companies operating between the EU and the United Kingdom will face the consequences of Brexit and a significantly increased administrative burden. British logistics providers will also face restrictions regarding pickups in the EU. In Central and Eastern Europe, the wages of truck drivers have risen significantly. These are an important component of road freight transport costs.
In the medium to long term, Credendo sees a major challenge for the industry in environmental regulations aimed at leading to a cleaner road transport sector.
Photo: © Credendo
