European road freight market to lose speed in 2023 | coldchainnews …

Bath, UK: The European road freight transport market is showing weak recovery, predicted to expand by 1.4% in 2023, according to a new report from Ti Insight.

The European Road Freight Transport 2023 Report points out that some unpredictable factors are creating an “uncertain, challenging and complex market environment in the road freight market”.

“In 2023, decreasing real income, tight financial conditions, and soft external demand will weigh on Europe’s economic activity and outlook. Both the domestic and international road freight markets segments will experience a slowdown,” says the report.

Viki Keckarovska, research manager at Ti, says: “The economic downturn is taking its toll on the European road freight market. Slowing economic growth in the EU exacerbated by high inflation weakens demand for road freight services in, through and out of Europe. Looking ahead, the market dynamics will be influenced by the macro development, but overall we expect the road freight market to be flat in 2023. With volumes dropping and available capacity increasing, the downward trend in rates looks set to continue in 2023.”

A Ti survey revealed that 84% of road freight companies are currently experiencing increased pressure on margins as costs soar and demand weakens. The top three strategies to sustain profit margins include technology investments, new and better value-added services, and increased focus on higher margin clients.

The comparison of the sustainability strategies of the top 20 European road freight providers shows that a number of companies demonstrate ambitious targets for the next five to 10 years. However, only five out of the top 20 European road freight companies have set a carbon neutrality targets.