Source: IRU, 2020-06-30
Road freight transport losses globally in 2020 will exceed €550bn, down 18%
Passenger transport impact three times greater; in Europe alone losses will exceed €80bn, down 57%
New IRU research shows that more than 3.5m road transport operators globally are facing unprecedented financial losses this year, as a result of transport restrictions and the overall economic downturn caused by the pandemic.
Goods transport companies globally expect an average 18% decline in turnover in 2020, totalling €551bn.
The sector is significantly impacted in the Middle East and North Africa (-22%) and Asia (-21%); in Europe it is down €64bn (-17%)
Companies in Argentina, China and Iran face more than 30% decline
Passenger transport companies in Europe expect to lose €81bn this year, or 57% of their annual revenue.
Coach tourism (-82%) and intercity (-70%) services are most affected, followed by taxi companies (-60%) and urban bus services (-42%)
Companies in Bulgaria, Spain, Sweden and the UK face more than 70% decline
Both goods and passenger transport companies reported that more restrictions were put in place than facilitation measures during peak confinement periods, further impacting the industry.
“Road transport services are fundamental to economies and communities everywhere,” said IRU Secretary General Umberto de Pretto. “These new findings are alarming. Every single road transport operator that goes bankrupt will impact the movement of people and goods.”
Clear recovery measures needed
IRU has published a 10 point recovery plan, with financial and non-financial measures for governments and banks, to support struggling road transport operators, ease the movement of people and goods, and drive global recovery, but very little, and in some cases nothing, has happened since.
“We have seen many governments adjust regulations and announce recovery packages, but the detail for road transport operators is generally vague,” said Umberto de Pretto.
“Our research points to the immediate need for measures targeted to the industry that match the scale of the current situation. Even at the peak of the crisis, road transport remained flexible, operational and continued to play its unique role. Now, global recovery efforts are endangered without clear government action to support road transport operators.” UMBERTO DE PRETTO, IRU Secretary General