The Europe Freight and Logistics market is anticpated to register a growth rate of more than 3% during the period (2021-2026).
The COVID-19 crisis fundamentally disrupted the demand and supply in the European road freight market. While virtually all of Europe was affected, the impact had distinct phases. The effects of lockdowns and border crossing restrictions evolved not only as time passed but also as the market adjusted to the new rules laid down by the government. In the European Union, trucks formed 37-mile-long lines on the A4 highway after Poland closed its border with Germany in mid-March 2020, compared to pre-crisis times, truck traffic fell by more than 50% in Spain, 46% in France, and 37% in Italy during a single week in mid-April 2020 as lockdowns took effect across Europe.
Logistics investments in Europe went up to 38.64 billion euros in 2020. This is driven by the massive growth of e-commerce in Europe. Key parameters promoting the market growth include economic growth, growing population, and growing industrialization. However, Lack of the government’s commitment to the development of seaports or road networks and reconfigured supply chains, with the growing local production and consumption units are thereby hampering the market growth.
Over the last few years, digitization has become more prominent in the air industry. As in most industries, big data obtained in real time, from real events, combined with flexible management, is helping air carriers take a more efficient approach to traffic planning and infrastructure. Airlines routinely use their data and technology to balance available air capacity against customer demands.
Freight rates on European roads rose in October 2020 and passed pre-crisis levels. the European road freight spot rates price index in October 2020 was 1.2% higher than October 2019. It was also 3.6% higher than in September 2020. Interestingly, rising freight rates have taken place against a background of falling fuel costs; normally the two move in concert. According to industry reports, pan-European diesel prices in the third quarter of 2020 was 4.8% lower than they were in the second quarter, and 14.8% lower than in the third quarter 2019, which also points to an improving demand picture.
Different verticals experienced varying increases in November 2020 compared with October: the automotive sector saw 12.8% increase in road freight capacity, while rates, which had been on the rise since May 2020, declined by 2.3%. The chemicals and life science sector saw capacity jump 18.6%, while prices rose slightly, by 0.6%; and the FMCG sector saw capacity rise sharply, by 16.8%, while prices fell by 2.9%.
Freight refers to any type of goods, items, or commodities that are transported in bulk via air transport, surface transport, or sea/ocean transport. Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination.
Europe Freight and Logistics Market is segmented by Function (Freight Transport, Freight Forwarding, Warehousing, and Value-added Services and Other services) and End User (Manufacturing and Automotive, Oil and Gas and Quarrying, Construction, Distributive Trade, Agriculture, Fishing and Forestry, and Others End Users) By Country (Germany, United Kingdom, France, Italy, Spain, Russia, Netherlands, Poland, Rest of Europe). The report offers Market Size and forecasts for Europe Freight and Logistics Market in Value (USD Billion) for all the above segments.
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