The profitability of transport and logistics companies remains an issue. While activity in the sector is increasing, profitability is barely rising. This emerges from research by Panteia commissioned by the National and International Road Transport Organisation (NIWO).
Domestic and cross-border transport revenues increased by 3.1 per cent and 2.4 per cent respectively in 2016. Meanwhile, total costs of transport companies also increased: by 2.7 per cent for domestic carriers and 2.1 per cent for cross-border carriers. The increase was partly due to higher labour costs. Companies chose to invest more in equipment and staff in 2016. The fleet increased on average by 3.3 per cent and the workforce by 1.7 per cent.
No positive result profitability
The average profitability in domestic and cross-border transport stood at -2.5 per cent, up 0.3 per cent from a year earlier. Profitability varies considerably by branch and size of company. For instance, specialised submarkets such as physical distribution, refrigerated/freezer and tank/bulk recorded positive results last year. Small companies (2 to 10 vehicles) saw an improvement in profitability. Companies with 50 or more vehicles also saw their profitability improve. Among companies with 10 to 50 vehicles, a slight deterioration in profitability occurred.
Forecast 2017
Based on data for the first quarter of 2017, Panteia has estimated profitability for this year. For 2017, profitability is expected to be +0.5 per cent for domestic transport and -2.6 per cent for cross-border transport.
Editorial LogistiekProfs
