Market Trends of germany courier, express, and parcel (cep) Industry
Germany leads European logistics and transportation, with rising investment initiatives focused on Eco-friendly mode of transport
- In July 2024, the German government initiated a nationwide project to establish a fast-charging network tailored for heavy-duty vehicles. This initiative aligns with Berlin's ambitious goal to achieve a carbon-neutral transport sector by 2045. Despite a notable drop in greenhouse gas emissions in 2023, marking a 70-year low for Europe's largest economy, the transport segment has struggled to hit its environmental benchmarks. Germany is targeting that roughly one-third of its heavy road haulage will be electrically powered or utilize electrically produced fuels like synthetic methane or hydrogen by 2030.
- The transportation and warehouse sector's significance extends to the facilitation of operations in various other industries. Germany asserts its dominance, surpassing even the second and third-largest logistics markets, namely France and the United Kingdom. Globally, Germany holds the esteemed rank of being the third-largest country in terms of both imports and exports of goods. The German federal government articulated its plans to augment investments in transportation infrastructure, signaling a commitment to allocate additional funds in 2022. This commitment materialized through an allocation exceeding USD 12.80 billion for federal highways and approximately USD 1.81 billion for waterways in the same year.
- The German government intends to invest more in rail than roads to promote environmental protection, sustainability, and effective transportation. 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, together with DB, invested in modernizing their rail networks by 2030.
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E5 gasoline prices in Germany dropped sharply due to end of maintenance season in Europe
- At the end of May 2024, E5 gasoline prices dropped significantly compared to April, with prices USD 4.91/100L lower in the last week. This decline is due to the end of the maintenance season in Europe, leading to increased refinery production and rising imports. Gasoline imports from Amsterdam-Rotterdam-Antwerp to Germany have steadily risen, with German seaports receiving 8,500 b/d in May, while exports fell to 3,700 b/d. The oversupply and end of maintenance season are driving down E5 gasoline prices in Germany. Meanwhile, diesel prices in the south and east are causing market disruptions.
- In 2023, gas consumption in Germany dropped by 5% compared to 2022. While compared to the average consumption in the period 2018 to 2021, gas demand in Germany fell by 17.5%. In January 2022, Germany's daily average diesel price was USD 1.66 per liter, almost 37 cents (USD 0.37) more than the average monthly diesel price in January 2021. Whereas the price of E10 premium petrol reduced. In January 2022, it cost USD 1.84 a liter, 32 cents (USD 0.32) cheaper compared to January 2021. The price hike for diesel and E10 fuels can be attributed to rising oil prices.
- German consumers faced the fastest price rise, and the high annual inflation rate was primarily driven by extreme price increases for energy and groceries since the Russia-Ukraine War. Germany is among the world's biggest natural gas importers. Around 95% of its gas consumption is met by imports. In 2022, 55% of gas imports came from Russia, 30% from Norway, and 13% from the Netherlands. Moreover, Germany anticipates a fuel price jump from 2027 EU emissions trading. An increase of 38 cents per liter of petrol and around 3 cents per kilowatt hour of natural gas at the beginning of 2027 compared to 2026.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The working-age population in Germany is expected to decrease by 2% by 2045, boosting inflation pressures
- Germany is expected to account for 36% of the total increase in LNG regasification capacity across Europe by 2026
- Germany's e-commerce industry declined by 12% YoY in 2022 due to the effects of the war in Ukraine and rising inflation
- Germany recorded 64% annual growth in automobile exports in March 2023, driven by rise in automobile production
- Germany ranked 3rd in 2023 Logistic Performance Index with a score of 4.1, dominates in the European market
- German manufacturers intend to invest more than USD 10 billion in smart manufacturing technologies by 2025
- Increasing energy and food prices have accounted for record levels of inflation
- Germany is the largest additive manufacturing (AM) market in Europe and is expected to grow by 15% in the coming years
- The new LNG terminal near the port of Wilhelmshaven is expected to be converted into a hub for green hydrogen by 2030
- Germany has invested around USD 63 billion in a green future and in boosting the construction industry
