Polish transport is a European power

The Polish road transport sector is a European power. According to the data of the Polish Economic Institute, it is responsible for 6% of the national GDP and about 20% of transport performance in the European Union.

On the forwarding market, we are strengthening our position at the forefront of the continent. The “Global freight forwarding 2024 market report” placed Poland in  10th place among European freight forwarding markets.

Transport in the East and Forwarding in the West

The aforementioned publication by Transport Intelligence summarized the global freight forwarding market in 2023. Its leader on a European scale was Germany, which last year controlled as much as one fifth of the sector. In second place with a 10% share was  France, and in third place was taken by Italy. Sweden, the Netherlands, Belgium and Denmark also ranked high in the ranking. Therefore, we can talk about the division of the European industry into two sectors – the transport sector in the east and the forwarding in the west.

– Despite this division, transport and forwarding are  interconnected, the success of which depends on identical factors. The crisis in the transport market, which we have been observing for several months, has naturally also affected freight forwarding. According to the “Global freight forwarding 2024 market report”, in 2023 the European freight forwarding market shrank by 2.3%, recording a value of EUR 57.3 billion. The economic slowdown, which was felt especially by the local leader of the sector, i.e. Germany, is also responsible for this state of affairs, which was also a large extent – comments Jakub Gwiazdowski, Head of Partnership & Relation at Transcash.eu.

A fall in optimism among Polish freight forwarders

The downward trend, which dominated especially the first months of 2024, is confirmed by the results of a survey conducted by Transcash. In March this year, we surveyed the moods among employees of Polish forwarding companies. Nearly 70% of respondents admitted that their company’s situation has deteriorated over the past 12 months, and only 9% have felt an improvement. When asked about the factors that had the greatest impact on the condition of the transport market, the respondents put the geopolitical situation and the reduction in global production at the top of the list (50% of the answers in the multiple-choice question). In third place, with a result of 45.5%, was – an increase in road tolls.

Transcash asked those declaring the deterioration of the situation of their company about the reasons for this state of affairs as part of a multiple-choice question. The most important ones included undercutting rates by competitors (63.6%) and an increase in the costs of doing business (61.6%). Half of the respondents indicated a decrease in the number of orders, and 40% – a decrease in the size of margins.

Shippers on the rise

However, the forecasts for 2024 are optimistic and assume an improvement in the situation in Poland as well. According to the report’s estimates, the growth leaders in the sector will be Ukraine, Turkey, Denmark, Serbia and Poland. The Polish freight forwarding market is expected to grow by about 6% at the end of 2024. This upward trend should continue at least until 2028, with its scale likely to decrease to about 2% per year during this period.

Will this actually happen? There is moderate optimism in the industry.

– The fourth quarter of the year is approaching, which is usually a period of growth for the industry serving the Christmas peak. Inflation forecasts, predicting a relatively small increase in 2025, also give hope for an improvement in the coming months. Therefore, a softening of the monetary policy and a reduction in interest rates, expected by many, including entrepreneurs from the TSL industry, seem realistic,” says Jakub Gwiazdowski from Transcash.eu.

What the future holds

The work of freight forwarders is important for the proper functioning of the entire transport industry, and in the light of the challenges ahead, the role of transport organizers will increase. The war in Ukraine and terrorist attacks on the Red Sea have shown how much the socio-political situation affects the transport market. In such situations, the role of freight forwarders is to adapt transport plans to dynamically changing conditions to guarantee the execution of orders. The scale of hacker attacks threatening transport infrastructure is also growing, in the case of which the ability to react quickly on the part of the freight forwarder can be invaluable.

On the European market, freight forwarders must also take into account European Union legislation, including the Mobility Package and the Fit for 55 program.

– The tightening of the rules of forwarding activities on the continent means that freight forwarders must also ensure that the transport process does not raise formal objections. In terms of reducing emissions, the challenge In the coming years will be the organization of transport adapted not only to the ranges of electric trucks, but also to the conditions of the charging infrastructure on the route. The scale of transport activity of Polish carriers in Europe leaves no doubt that professional forwarding services will remain invaluable for maintaining their position on the continent, said Jakub Gwiazdowski.

Source: TC Law Firm