The future of freight: key takeaways from the latest IRU report
The European road transport sector is a vital cog in the continent’s economic machinery, employing millions and contributing significantly to the region’s GDP. The latest IRU report provides a detailed analysis of this sector, offering valuable insights for shippers aiming to optimize their logistics strategies amidst evolving market conditions. Here are the key takeaways.
1. Dominance of SMEs in road freight: The road freight sector is characterized by its reliance on small and medium-sized enterprises (SMEs). Remarkably, 90% of road freight companies employ fewer than ten people, yet these SMEs collectively contribute nearly a quarter of the sector’s added value. This statistic underscores the importance of supporting small businesses in the logistics ecosystem, particularly in enhancing their productivity and competitiveness through digital tools and streamlined operations.
2. Rising labor costs: Labor remains a significant cost driver in the road transport sector, accounting for about 35% of total expenses. The past decade has seen a 49% increase in total wages and salaries, reflecting both a rise in employment and in wage levels. For shippers, this trend highlights the need for efficient workforce management and the potential benefits of automation in reducing dependency on labor-intensive processes.
3. Strategic response to external economic drivers: External factors such as government expenditure, inflation, and energy prices play a pivotal role in shaping the road transport landscape. The report shows a strong correlation between government investment in infrastructure and the growth of the transport sector. Shippers should stay attuned to these macroeconomic indicators to better anticipate fluctuations in freight volumes and costs, enabling more resilient and adaptive logistics planning.
4. The shift toward sustainable operations: With sustainability becoming a core priority across industries, the road transport sector is no exception. The report emphasizes the increasing regulatory and customer-driven push towards greener logistics solutions. For shippers, this means prioritizing partnerships with carriers who are committed to reducing their carbon footprint and exploring multimodal transport options that align with sustainability goals.
