Central-eastern European truckers hit hard in 2009 downturn

THE road freight sector in Central and Eastern Europe (CEE) has been "badly" affected by the global economic slowdown, according to the latest report from the UK's Transport Intelligence.

Figures contained within the new report: Central & Eastern Europe Logistics 2010 show that the market in 2009 declined by 20 per cent year on year. The fall was most marked in the first six months, with the market gradually recovering towards the end of the year.

"Weak volumes and over capacity resulted in falling rates, accelerating market contraction. The international segment of the road freight sector was the first to feel the downturn, with the region heavily exposed to export markets in Western Europe, especially in Germany. Manufacturers and retailers in Europe's major consumer markets struggled to cope with high levels of inventory and consequently slashed orders placed with CEE suppliers. This impacted on economic growth in the region, a situation compounded by the fiscal crisis," the report said.

It forecasts that the road freight market in the region will grow nine per cent between 2009 and 2013. Improving transport infrastructure, better-than-expected economic growth and the trend towards the eastward migration of manufacturing will drive the sector's development.

Consumer spending and the penetration of the market by international retailers are also expected to play important roles.

"The market was hard hit in 2009 by the global recession and this resulted in many operators going out of business or reducing their fleets. Capacity reductions and an upturn in volumes have resulted in firmer pricing, which will mean a more stable, profitable industry over the coming years," said TI's chief analyst John Manners-Bell.
(Source:www.schednet.com)