A new report suggests that revenue from road freight in Europe could drop by as much as €63 billion in 2020 as a result of the impact of coronavirus.
According to findings by the report from the International Road Transport Union (IRU) – COVID-19 Impacts on the Road Transport Industry – the pandemic could mean the demise of many trucking companies across the continent.
For many that’s a big worry, as the fear is those bankruptcies will negatively impact the movement of people and goods in the long term.
Others are trying to focus on the positives. With the European freight industry being so fragmented, the impact of those closures is unlikely to create new competition or change the dynamics too severely.
And there’s more good news. Although road transport rates were down 14.3% in June this year compared to June 2019, rates were up 3% from May. This signals greater stability as we move into the next stage of the Covid-19 crisis.
€63 billion is a huge figure, however you look at it. It’s now about getting the balance between supply and demand back on track.