Carriers are raising the alarm! The condition of Polish transport companies is bad
The latest data from the Central Statistical Office leave no doubts – the Polish transport industry is going through a crisis phase, the effects of which are clearly felt by most logistics companies.
The situation of Polish transport companies has been systematically deteriorating for several years. Experts believe that the reasons for this state of affairs lie in several overlapping factors – from the COVID crisis, through EU regulations resulting from the European Green Deal, deteriorating economic situation, rising costs, to the effects of the war in Ukraine. Effects include: growing debt of the transport sector, increasing number of bankruptcy and restructuring proceedings and employment reduction.
The importance of the transport industry for the Polish economy
Transport is one of the key industries in the Polish economy. In 2021, companies from this sector generated almost 6% of GDP while employing over 950,000 people, which placed this professional group in third place in the services sector in terms of size. Moreover, according to the PSPA report “Electromobility in heavy transport”, What is more, Poland owns the largest truck fleet in the European Union, numbering approximately 1.2 million vehicles. This means that on average every fifth truck on EU roads is registered in Poland. In 2021, Polish road transport transported 380 billion tonne-kilometers (tkm), which was the highest result in the European Union, as much as 24% higher than in Germany, which took second place.
Unfortunately, recent years have brought a deterioration in the condition of the industry. Experts are calling more and more often and louder to take real actions that will support Polish transport. The recent protests on the border with Ukraine were an example of the desperation and calls for help of Polish carriers.
Disturbing results from the first quarter of 2024
Statistical analyzes of the Central Statistical Office indicate that in the first quarter of 2024, the financial results of enterprises from the transport and storage sector were much lower than those achieved in the same period of 2023. The result on sales of products, goods and materials decreased by as much as 80.6% (to PLN 0.4 billion). The gross financial result decreased by 42.5% (to PLN 1.7 billion), while the net financial result decreased by 53.2% (to PLN 1.2 billion). The percentage of companies reporting net profit in the total number of enterprises in the sector also decreased (from 75.5% to 59.2%).
According to the data available on the website of the Central Economic Information Center, 2024 did not bring a significant increase in the number of bankruptcy proceedings. However, analysts point to the growing number of restructuring proceedings and consumer bankruptcies reported by people previously running a business. Analyzing the data in terms of the main PKD (Polish Classification of Activities), one immediately notices a significant number of restructuring proceedings of entities dealing in road transport of goods – they are in first place with the number of 153 initiated proceedings.
The Central Statistical Office data on foreign trade turnover are also important for the condition of the transport industry. In the first quarter of 2024, commodity turnover (expressed in PLN) was much lower than in 2023. Exports decreased compared to the same period last year by 12.4% (to PLN 376.8 billion), and imports decreased by 12.8% (to PLN 361.7 billion). For comparison, in 2023 there was an increase on both sides of exchange – on the export side by 15.5% and import by 5.3%.
Threats to the Polish transport industry
The current list of challenges and threats affecting the transport sector includes, among others: weakening economic situation, growing debt of the industry, shortage of professional drivers, regulatory trends related to the European Green Deal, increase in business costs and unequal competition conditions, especially from Ukrainian carriers. And these are just some of the pressing problems.
In the face of such a number of accumulating negative external factors, industry representatives regret the lack of dialogue and understanding on the part of the authorities. More and more often, voices are heard that those in power have no idea about the problems of the transport industry, they focus on extinguishing ad hoc fires and only in places where they are most talked about.
Meanwhile, government officials assure that they recognize the need to take urgent action to support the road transport industry. From the response to the March appeal of the presidents of ZMPD and TLP* to the Minister of Infrastructure (regarding the State Treasury’s reimbursement of the mandatory replacement of tachographs), it can be learned that in the opinion of the Minister of Infrastructure, “any action that could constitute real support in the face of a noticeable slowdown in global economic growth deserves support, resulting in decrease in the number of transport orders, as well as intensifying competitive pressure from road transport entrepreneurs from countries with lower labor costs.”** It is hoped that the Polish government will take many more such actions in the near future.
** https://zmpd.pl/aktualnosci_pliki/f-GLOWNY-2511-4227-9950.Odpowiedz_Ministra_Infrastruktury.pdf