The transport industry in crisis. Companies are making losses

The transport industry in crisis.  Companies are making losses

The transport industry is in crisis. The economic downturn has made companies start making losses. As “Rzeczpospolita” writes, we will have to wait until next year for the situation to improve.

According to “Rzeczpospolita”, the transport situation in the European Union has fallen sharply, both compared to the times before the pandemic and last year. “Compared to last year, the demand for transport services is clearly lower, in some cases by as much as 15-20 percent.” – says Marcin Haładuda, sales director of the transport exchange, in an interview with the daily.

An industry in crisis

As the daily writes, 2023 may end with losses and even bankruptcy for many transport companies. According to the data of the Central Economic Information Centre, in the first half of 2023, 208 companies declared bankruptcy, including seven from the road freight transport industry – the same number as in the whole of 2022.

In the first six months of the year, 2,367 bankruptcy and restructuring proceedings were carried out, compared to 2,730 in 2022 and 1,051 in 2019.

Not only transportation

The economic downturn and high inflation are a problem not only for the transport industry. Construction companies are also in big trouble, especially those dealing with road infrastructure.

According to the analysis of 35 contracts carried out by the Polish Association of Construction Employers, 1/3 already brings large losses, and soon they can be felt by everyone. Industry organizations estimate that the increase in the cost of contracts concluded in the years 2020-2022 reached even several dozen percent at the end of the first quarter of this year.

Due to the difficult situation, the Polish Association of Construction Employers and the National Chamber of Road Construction wrote a letter to the Minister of Infrastructure, in which they demanded an increase in the contract indexation limit from 10 to 20 percent.

Similar Posts