Categories: News

European Road Freight Market to grow by 4.9% in 2022

[divider style=”solid” top=”25″ bottom=”25″][dropcap]T[/dropcap]i’s latest market forecasts show that the European road freight market will expand by 4.9% in real terms to reach €390,754m. According to Ti’s COVID-19 Recovery Tracker 2022 (CRT22), the European road freight market is expected to reach a CRT22 of 6.3%, representing a full recovery, with an additional 6.3% growth compared to 2019 levels.

All European markets are forecasted to recover from the pandemic in 2022, however the major European road freight markets are set to have some of the slowest recoveries.

Ti’s latest market projections for 2026 show that the European road freight market will reach a real CAGR of 3.0% from 2021 to 2026. The COVID Recovery Tracker for 2026 (CRT26) shows that the region’s total road freight market will be 23.1% larger in 2026 than it was in 2019 in real terms. On the back of solid trade forecasts, the international road freight market is expected to grow faster than domestic during the 5-year period, although it will remain the smaller of the two markets.

Behind this underlying picture of a significant recovery there are a number of factors that are reducing optimism for forecasts, including the length and result of the conflict in Ukraine, the response to increasing inflation, and the rising cost base for road freight services, all of which heavily impact growth in the market.

The effects of inflation on the supply side of the European road freight market, especially on diesel prices, have led to substantial increases in road freight rates. It is reasonable to surmise that smaller road freight providers are likely to suffer disproportionately from the increase in operating costs, whilst larger providers are likely to increase their presence in the market due to their ability to pass on higher fuel prices.

Fuel costs are only one of the challenges currently shaping the road freight market in Europe, and only one factor pushing rates up. The shortage of HGV drivers has long been an issue in the European road freight market and continues to push rates up.

At the end of 2021, before the Russia- Ukraine conflict, over 380,000-425,000 truck driver positions were unfilled in Europe according to IRU estimates. Driver shortages are expected to jump by 40% in Europe in 2022, according to the IRU. Despite companies introducing various initiatives to alleviate the problem, including wage increases and funding HGV training, the industry still struggles to attract more professionals.

Also Read

EABC wants logistics charter to boost region’s competitiveness

Why the rich are flocking to St. Kitts and Nevis

theafricalogistics

Recent Posts

Ready to buy? Here are the hottest stocks to add to your list now

In today’s dynamic market, identifying the right stocks to invest in can make all the…

4 minutes ago

Why Micron Technology stock should be on your radar

In the fast-paced world of technology stocks, few companies have seen such consistent growth and…

18 minutes ago

Delta passenger furious after Seat given to service dog: A controversial incident sparks debate

In a recent incident that has captured the attention of travelers and aviation enthusiasts alike,…

13 hours ago

NVIDIA (NVDA): A stock to watch in 2025?

When it comes to picking a stock with strong potential for 2025, NVIDIA (NVDA) stands…

14 hours ago

Blockchain Revolution: How Cryptocurrency is Transforming Global Logistics

The global logistics industry is undergoing a seismic shift, driven by the integration of blockchain…

14 hours ago

How cryptocurrency works: A step by step guide

Cryptocurrency has become a buzzword over the past decade, capturing the imagination of tech enthusiasts,…

14 hours ago