In 2023, the European road transport sector has experienced dynamic changes, partly triggered by global economic and environmental challenges. Rising costs of doing business while freight rates have fallen have meant that companies have had to look for alternative solutions to generate revenue. The recipe for problems has turned out to be waste transport, which has been gaining ground recently. Find out how to obtain the relevant permit.
Less demand - more problem
In a report published on upply.comWilliam Béguerie identifies several reasons for the situation in which the transport industry finds itself. He mentions, among others, a reduction in demand for transport services due to less production. Fewer goods = less transport. The calculation is simple. In doing so, he referred to forecasts by the consultancy Transport Intelligence in July 2023, which predicted that while the transport industry saw revenue growth of 3.5% in 2022, a year later it would only be 1.4% as far as the European Union was concerned, while international transport was predicted to fall from 6.4% to 3.4% in profits between 2022 and 2023.
How do Polish entrepreneurs view the situation in the industry? Paweł Koszyński, CEO of the company Innovation Trading Sp. z o.o. confirms that the change is noticeable:
"Undoubtedly an important factor is the clear drop in production. The customers we serve either have nothing to transport or the volumes are much smaller and transports that used to fill a whole week are reduced to just a few days. We have therefore had to look for other solutions. Fortunately, we were able to obtain waste transport permits for our subcontractors, so the situation has improved, because there will never be a shortage of waste and, according to the signals we are getting, the demand for waste transport will only increase."
Higher costs - lower rates
Reduced demand for transport is not the only challenge facing transport business owners. An increase in the minimum wage by almost 18% in the period from 2019 to 2023, higher business costs, higher tolls and taxes - all expenses for the entrepreneur, but where are the profits? Especially as freight rates are noticeably lower.
On the issue of rates, our interviewee notes:
The drop in neutral freight rates was felt particularly in 2023. Enabling Ukrainian carriers freer transport of goods into the EU meant that the market was 'flooded' with services that were provided at prices far lower than we were used to. Unfortunately, this was to the advantage of some manufacturers. Hauliers from EU countries were turned away, saying that they would not pay more for something that a car with Ukrainian plates could carry for one third cheaper.
Growing importance of waste transport permits
In order to legally transport waste, companies must obtain the relevant permits. This process requires compliance with a number of legal and environmental requirements. This is important both to secure environmental responsibility and to ensure the company's competitiveness in the market. However, this issue should not be approached lightly. This is because it requires appropriate preparation and work. It is therefore important to make use of the solution offered by outsourcing and to have the necessary waste transport permits prepared. an experienced consultancy.