Market Trends of europe road freight transport Industry
European Union allocated USD 5.76 billion to 135 transportation projects to boost economic recovery
- The transportation and warehouse sector plays a crucial role in supporting operations across various industries, with Germany leading as the dominant player, surpassing France and the United Kingdom. Globally, Germany ranks third in both imports and exports of goods. The German federal government expressed its intention to increase investments in transportation infrastructure, allocating over EUR 12 billion (USD 12.80 billion) for federal highways and around EUR 1.7 billion (USD 1.81 billion) for waterways in 2022, thereby demonstrating its commitment to improving transportation networks.
- The German government intends to invest more in rail than road network. In 2022, Deutsche Bahn, the federal government, and the local and regional governments invested roughly EUR 13.6 billion (USD 14.51 billion) in rail infrastructure. Lower Saxony, Hamburg, Bremen, Mecklenburg-Western Pomerania, and Schleswig-Holstein are partnering with DB to invest in modernizing their rail network by 2030.
- In 2022, the European Union approved EUR 5.4 billion through grants for approximately 135 transport infrastructural projects. These projects aim to aid post-pandemic economic recovery in the EU Member States, enhance transport links, promote sustainable transportation, boost safety, and create job opportunities. All supported projects are part of the Trans-European Transport Network, which connects EU Member States and aligns with the European Union's goal of completing the TEN-T core network by 2030 and the comprehensive network by 2050, all while aligning with climate objectives outlined in the European Green Deal.
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Since February 2023, diesel imports from the Middle East, Asia, and North America have increased due to the ban on imports from Russia
- Gasoline prices surpassed EUR 2 (USD 2.13) per liter in most of the 19 eurozone countries in Q1 2022. The main reason behind the increased prices was supply issues due to the conflict between Russia and Ukraine, as Russia supplied more than a quarter of the EU's petroleum needs. In 2021, the average price for a liter of gasoline in the eurozone was EUR 1.30 (USD 1.38); at the start of 2022, the price was about EUR 1.55 (USD 1.65) per liter.
- Russia has been Europe’s largest supplier of diesel. In 2023, diesel prices declined in Europe. Since February 2023, when the European Union implemented the ban on petroleum product imports from Russia, diesel exports from Russia to Europe have averaged 24,000 barrels per day (b/d), down by 96% from the 630,000 b/d Russia sent to Europe in 2022. From February through May, diesel exports to Europe increased by 51% (160,000 b/d) from the Middle East, by 97% (147,000 b/d) from Asia, and by 65% (47,000 b/d) from North America.
- Denmark is the most expensive country for petrol, and Finland is the most expensive for diesel. Austria has the cheapest petrol, and Spain is the cheapest for diesel. Fuel prices in the United Kingdom reached record highs in 2022, with the average price of petrol hitting 191.53 p-per-litre and diesel reaching 199.05 p-per-litre in July. The average cost of petrol at UK forecourts has risen to break 150p a liter (USD 1.80) since the start of 2023, and diesel has risen to 152.41p a liter (USD 1.83). Spanish fuel prices were lower than in the United Kingdom by about 20 cents per liter for petrol and 40 cents per liter for diesel in January 2023.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The manufacturing sector is driving European economies on the back of massive investments from public and private players
- United Kingdom, France, and Germany together account for 60% of the total e-commerce revenue of Europe
- France ranked 13th in the Logistic Performance Index in 2023 due to opportunities for business expansions across Europe
- Italy secures 19th ranking in 2023 LPI due to strong trade infrastructure and competence in logistics services
- Russia's Logistic Performance Index ranks 88th in 2023, due to the Russia-Ukraine crisis and trade disruptions
- UK's global trade efficiency declines with LPI rank falling to 19th place in 2023 due to logistics infrastructure quality
- Automobiles and agricultural exports were among the top export contributors to the regional economy in 2022
- Fuel prices and a shortage of truck drivers in the region are leading to an increase in trucking operational costs
- To reduce carbon emissions, European truck manufacturers aim to sell only electric or hydrogen trucks by 2040
- Rising prices of road freight transportation majorly due to slashing oil imports from Russia in 2022
- Increase in production and consumer prices is largely attributable to energy supply disruptions caused by the Russia-Ukraine War
- The construction industry and oil and gas production are boosting GDP growth amid lingering challenges arising from the Russia-Ukraine War
- Manufacturing industry's contribution grew by over 7% YoY in 2022, led by the automobiles sub-segment
- Germany ranked 3rd in 2023 Logistic Performance Index with a score of 4.1, dominates in the European market
- Netherlands climbs to the 3rd rank in LPI 2023 due to rise in infrastructure investment to USD 26.68 billion by 2028
- Spain's LPI rank witnessed a rise by four places due to upgrades in its infrastructure network and new high-capacity roads
- Major road investments in key road logistics markets, like Germany, France, and Italy, expected to strengthen connectivity and conditions of roads
- European economies are diversifying their LNG import channels around the world, with a focus on reducing Russian imports
- Commercial vehicle registrations in the region witnessed a decline, with a slight growth in light commercial vehicle registrations
- Regional economies undertaking massive road infrastructure investments to strengthen freight transport volume in the European region
- The European Union invested more than USD 5 billion in 2022 to increase rail in-freight transport's market share to 25% by 2030
