The increase in competition caused by the arrival of Eastern players poses several difficulties for road transport in Europe. They range from internal struggles between the various players to nibble at a small part of a market share to the challenges planted by recruitment.
We tell you a little bit more about it in the following lines:
A margin dependent on the economic situation
Road transport in Europe needs fluidity. Indeed, the socio-economic situation tends currently to influence the profits of transporters.
We can take the example of the 2018 demonstrations led by the yellow vests. They have further impacted the sector’s annual balance sheet, which is already known to yield fairly modest margins, ranging from 1 to 1.5%.
A sector in the grip of many changes
The European road transport sector is trying to survive in the face of increasing competition, particularly from Eastern Europe. In international transport sector, it is increasingly difficult to gain market share.
For example, French players in the sector used to rely on international transport for 50% of their activities. Nowadays, this particular branch of their transport activity generally represents only 8 to 10%.
As a result, the distance travelled by lorry drivers in the course of their transport is reduced. It is on average around 130 kilometers long.
We will also talk about cabotage, which consists for truck drivers coming from abroad to carry out internal transport in addition to their international delivery. This is another major blow to the local market.
Even socially, the European road transport sector still faces many disparities. Regulatory harmonization efforts have been made, but they are still far from satisfactory. The obstacles linked to the increase in fuel prices also come into play. In addition, the vice is tightening around the actors because of the introduction of environment-related taxation.
Finally, the road transport sector in Europe suffers from a problem of image and popularization. As a result, there is a lack of profiles looking for a branch of work in which to invest. There is still a long way to go in this area, so that efforts to make European road transport cleaner and more respectful of the requirements of its time are recognized and become factors of attractiveness.