120 Polish carriers went bankrupt in three months. There is something that is supposed to improve the dramatic situation of the industry

The first quarter of 2024 brought devastating consequences for the transport industry in Poland, which has been struggling with a very serious crisis for a long time. As many as 120 transport companies declared bankruptcy in the first three months of this year alone. Meanwhile, statistics from the Central Statistical Office indicate a worsening trend, in which more and more transport companies are struggling with serious financial problems. The sector’s debt currently amounts to PLN 32 billion, covering over 37 thousand companies, which indicates an exceptionally difficult situation.

Rising costs and competition from Ukraine

Rising operating costs, such as increases in road tolls, fuel and energy prices, and the increase in the minimum wage, are significantly burdening the budgets of transport companies. In addition, competition from Ukrainian transport companies, which have gained access to the common market thanks to the liberalization agreement with the EU, poses a serious challenge to Polish carriers. Ukrainian companies currently carry out 92 percent of bilateral transport, which puts Polish carriers in a difficult competitive situation.

Another problem for the transport industry is fuel costs. Experts estimate that they currently account for about 40 percent of the total operating costs of a typical international road transport company. High fuel prices are a huge financial burden that affects the profitability of companies. Even small increases in this area can significantly affect operating costs, forcing companies to look for additional savings.

In May, organizations associating companies in the transport sector appealed to the government for support, emphasizing that 60% of companies are planning reductions and 13% are close to bankruptcy. The industry is calling for tax relief and exemptions from public dues, including vehicle tax and social security contributions for drivers, and subsidies for replacing tachographs.

Telematics as the key to savings?

Modern technologies, such as telematics, can play a key role in improving the financial situation of transport companies. The use of telematics systems allows for the optimization of operating costs, especially in terms of fuel consumption. Research shows that 69% of fleet companies see savings resulting from the use of modern technologies in fleet management.

Sylwia Pawlina, Managing Director of Intertransauto – a company employing 120 drivers and having a fleet of over 100 vehicles – emphasises the benefits of using the LocTracker system in her company.

“Thanks to real-time vehicle tracking, we have access to a range of information that allows us to reduce our business costs. First, monitoring fuel levels makes it easier for dispatchers to optimise costs, for example by planning drivers to refuel at stations with which we have partnership agreements. In addition, the available calculation of road costs makes it easier to choose financially optimal routes. Additionally, generating detailed reports and summaries makes it easier for us to control costs and improves the company’s profitability.”

Direct communication with drivers enables immediate response to any irregularities, and analysis of data from the telematics system allows for training drivers in eco-driving. This approach leads to fuel savings and lower CO2 emissions, which is beneficial for both the company and the environment. Additionally, the ability for customers to track their cargo in real time increases the quality of service and helps to retain contractors.

Forecasts indicate that the European telematics market will grow dynamically, reaching over 43 million devices by 2029. The use of modern technologies may become the key to the survival and development of Polish transport companies, allowing for effective cost optimization and improved market competitiveness.