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Reasons for lower capacity

Transportation is called the bloodstream of the economy for a reason.

The Polish transport industry, despite its strong and consolidated position in the European market, is facing problems that have a direct impact on the condition of the domestic economy.

The reasons for this are many:

• Semiconductors crisis – no volume, carriers sold part of their trucks and some stopped their business.

• Increased production in almost all car factories + end of 1H2022.

• Less supply of new trucks.

• Carriers are reducing the size of their fleets, often by as much as 30-40%. The reductions are mainly due to the scrapping of older carriers, meaning that the industry has completely lost capacity.

• Investment uncertainty, no clear rationale for expanding fleets of small carriers (high interest rates).

• War in Ukraine:

– Rising fuel costs- reduction of oil supplies from Russia to Europe.

– 94,400 vehicles transported to Ukraine on preferential terms from April 9 to May 19 (ukranews.com). About 300 full trucks per day.

• Rising inflation.

• Mobility package – New rules take effect in February 2022.

• Increase of above results Railway renovation in Germany, rail volume went on trucks.

• Pricing competition = many clients raised transport rates significanty.

• Driver shortage – in Europe during the year, driver shortages increased by 42% and this trend is continuing this year.

• Increase in labor costs due to driver shortage.

The outlook for 2022 is for inflation to persist in most economies and fuel price to remain high, so it is highly likely that freight rates will remain elevated and may even continue to rise over the coming quarters across Europe, at least until the end of 2022.

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