Independent Road Freight Industry is Booming

Ti’s 2016 Report Examines the Dynamics of the Road Freight Sector

The latest report from Transport Intelligence shows that the freight industry is going from strength to strength.

Transport Intelligence has recently published its long-awaited 2016 European Road Freight Transport Report.

The report is invaluable to anyone involved in the road freight transport industry. It includes research on the dynamics of the road freight sector as well as the economic drivers within the industry.

It also provides a raft of country and sector specific data, forecasts and analysis.

Transport Intelligence

This UK-based organisation was established in 2002 and ever since, it has been providing high quality market research services to the global logistics sector. Its client list tells its own story, having acted as an advisor to the UN, European Commission, World Economic Forum and World Bank.

The 2016 European Road Freight Transport Report was created by a team of experts, led by Thomas Cullen, a respected writer and analyst who has been studying the global logistics sector for more than 15 years.

About the report

The report gives a broad overview of the European road freight market structure, examining the economic drivers and the effects of such factors as driver wages, freight rates, new fuel technologies and other technological advances throughout the supply chain.

It goes on to examine market data to give transport and logistics profiles of a variety of European countries and insights as to how the various economies have performed throughout the year.

The report analyses the different markets in terms of size, and examines growth rates, providing forecasts as to which countries are likely to see the greatest growth over the coming years.

It also provides insights regarding the key origins and destinations of inbound and outbound road freight for each country.

Key market findings

David Buckby is an economist within Ti, and on introducing the report he observes that in both 2015 and 2016, the European road freight market has seen steady growth, at a better level than that seen in previous years.

Looking broadly at the market, the report quickly identifies that it is extremely fragmented, with the top 10 players accounting for just 10% of the market.

When it comes to different geographies, Central Europe has clearly emerged as a key location for manufacturing. It is, however, inextricably entwined with markets and supply chains based in Western Europe. This pushes up the demand for international road freight. As well as central and western Europe, we are seeing more shipping routes Lithuania and Latvia appear, as the greater European market expands.

Unsurprisingly, fuel costs have the biggest impact on road freight pricing, and so it is natural that the report gives full attention to the potential for alternative fuels to transform the industry.

New technology

The subject of alternative fuels has seen major government investment the world over, but its use is far from straightforward. For example, bioethanol has been heralded as the ideal fuel alternative as it can be used in existing diesel engines. However, if it is used above a certain percentage by volume, it can cause premature wear to engine components, negating any cost saving.

Manufacturers are investing more and more every year into battery technology.  The report predicts that in just five years we will see even the largest trucks being powered by electricity.

The report also looks at other, even more advanced, technologies, such as self-driving vehicles and drones. While they might seem like science fiction today, the level of investment suggests that they will be realities before we know it.

Full report

This is just a flavour of the in depth analysis available in the full report, which is available directly from Ti.

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