Profitability among road transport companies improved slightly in 2015 compared to a year earlier. A marginal improvement is also expected for 2016, although rates are still under pressure. This is according to research by Panteia commissioned by the National and International Road Transport Organisation (NIWO) Foundation.
The average profitability (excluding self-employed drivers) in domestic transport came to +0.1 per cent in 2015. An improvement, as profitability was -0.7 per cent a year earlier. In cross-border transport, returns increased by 0.6 percentage points on average. On average, these companies achieved returns of -2.8 per cent (-3.4 per cent in 2014). Despite the improvement, construction materials transport and the trucking submarket still recorded losses between 4 and 4.5 per cent. Specialised submarkets such as physical distribution, refrigerated/freezer and tank/bulk recorded positive results last year.
Increase in business activity
Panteia states that activity in domestic transport increased last year. The increase can be seen in the number of kilometres driven per vehicle. Due to the improved activity, revenues in domestic transport increased by an average of 4.1 per cent compared to 2014. Cross-border transport saw a decrease in revenues (-1.2 per cent). Total costs increased by 3.3 per cent in domestic transport operators, while cross-border operators saw their costs fall by 1.8 per cent.
Companies invested more in equipment and staff in 2015. The fleet was expanded by 3.5 per cent at domestic transport companies. At international companies, that expansion was 1.5 per cent. Investments were also made in personnel, with domestic companies spending 3.8 per cent more on personnel. Among cross-border companies, it was 1.5 per cent.
2016 forecast
Based on the results in the first quarter of 2016, Panteia has estimated profitability for the whole of 2016. The agency expects profitability in domestic transport to come out at +0.3. In cross-border transport, it is -2.5 per cent.
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