With many changes taking place in the past few years, in which industries had to come to a halt, or how international ties had changed from what they were for decades, European road freight was hit hard. But as time has progressed, has it got better?
In today’s blog, we will be answering the question ‘Is European road freight capacity finally stabilising?’
Radius Warehouse and Logistic Services is here to provide you with all the information you need when it comes to the multiple areas of logistics that we provide, from sea, to air, to road freight solutions. Operating from the South West of England for over 20 years, or experience, and service is here for anyone who requires it.
Brexit and COVID-19: A Perfect Storm for European Road Freight
The confluence of Brexit and the COVID-19 pandemic has had a profound and enduring impact on European road freight. Both events introduced unprecedented challenges to the industry, disrupting supply chains, increasing costs, and altering trade dynamics.
Brexit brought about significant changes in customs procedures, regulatory frameworks, and border controls between the UK and the EU. Increased paperwork, customs delays, and the need for specialised customs expertise created bottlenecks and added significant costs for hauliers.
The introduction of new customs declarations, combined with the disruption caused by the pandemic, led to extended transit times and stockpiling of goods.
The COVID-19 pandemic exacerbated these challenges. Lockdowns, border closures, and restrictions on movement severely curtailed economic activity, reducing freight volumes. Driver shortages, caused by illness, quarantine, and border restrictions, further strained the industry.
Additionally, the pandemic highlighted the vulnerability of supply chains reliant on just-in-time delivery, as disruptions caused widespread shortages of essential goods.
The combined impact of Brexit and COVID-19 has forced the road freight industry to adapt rapidly. Digitalisation, improved customs processes, and enhanced supply chain resilience have become priorities. While challenges persist, the industry has demonstrated resilience and adaptability in navigating these unprecedented times.
How did these issues practically affect European road freight?
The combined impact of Brexit and the COVID-19 pandemic has presented unprecedented challenges to the road freight industry.
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Driver Shortages: A significant portion of HGV drivers in the UK were of European origin. Post-Brexit immigration rules and the pandemic-induced disruption to driver training and testing exacerbated this shortage, leading to capacity constraints and increased costs.
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Border Delays and Increased Paperwork: New customs procedures and border controls introduced by Brexit, coupled with pandemic-related restrictions, resulted in lengthy delays at border crossings. Increased paperwork and complex customs regulations added to the operational burden for hauliers.
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Supply Chain Disruptions: The pandemic caused widespread supply chain disruptions, with factories closing, ports congested, and consumer demand fluctuating rapidly. This created challenges in planning routes, securing loads, and meeting delivery deadlines.
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Rising Costs: The combination of increased fuel prices, driver shortages, and new customs procedures led to significantly higher operating costs for hauliers. These costs were often passed on to customers, contributing to inflation.
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Economic Uncertainty: The economic downturn caused by the pandemic led to reduced freight volumes, impacting hauliers’ revenue and profitability.
Is European road freight capacity finally stabilising?
The road freight industry in Europe has undoubtedly faced a tumultuous period, with Brexit and the COVID-19 pandemic serving as catalysts for unprecedented disruption. While the sector has shown remarkable resilience, achieving a state of complete stability remains elusive.
The initial shockwaves of Brexit and the pandemic have subsided, and many of the acute challenges have been mitigated. Supply chain resilience has improved, businesses have adapted to new customs procedures, and driver shortages, although persistent, are less severe. However, the industry continues to navigate a complex and dynamic landscape.
Geopolitical tensions, energy crises, and the ongoing transition to sustainable transportation present new hurdles. Additionally, the lingering effects of the pandemic, such as economic uncertainty and consumer behaviour changes, continue to influence freight volumes and patterns.
While there are signs of stabilisation, it is essential to acknowledge that the road freight sector operates in a highly interconnected and volatile environment. Unexpected events, such as natural disasters or further geopolitical crises, could quickly disrupt the fragile equilibrium.
In conclusion, while European road freight has made significant progress in recovering from the challenges of recent years, achieving lasting stability is an ongoing process. The industry must remain agile and adaptable to navigate the evolving landscape and ensure the smooth flow of goods across the continent.
What is the modal split of inland freight transport in the EU?
As of 2020, approximately 77% of inland freight was transported by road. This dominance is attributed to several factors, including flexibility, accessibility, and the widespread network of roads across the continent.
Rail and inland waterways accounted for the remaining share, with roughly 17% and 6% respectively. While rail offers advantages in terms of capacity and environmental impact, its share has remained relatively stable over the past decade. Inland waterways, though efficient for bulk goods, have limited geographical reach.
It’s important to note that this is a general overview, and the modal split varies significantly between EU countries. Factors such as geographical location, infrastructure development, and the nature of goods transported influence the choice of transport mode.
There has been a growing emphasis on shifting freight from road to more sustainable modes like rail and inland waterways to reduce environmental impact and congestion. However, achieving a substantial modal shift remains a complex challenge.
What is the most efficient freight transport?
Generally, rail and water transport are considered the most efficient modes of freight transport in terms of fuel consumption and environmental impact.
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Rail: Trains can transport significantly more cargo per unit of fuel compared to road transport. This makes them a more efficient choice for long-haul journeys and large volumes of goods.
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Water transport: Ships are incredibly efficient in terms of fuel consumption per tonne of cargo carried. While primarily used for international trade, inland waterways can also be efficient for moving bulk goods within regions.
Road transport, while flexible and essential for last-mile delivery, is generally less efficient in terms of fuel consumption and emissions. However, its role in the overall supply chain is indispensable.
It’s important to note that the most efficient mode of transport depends on various factors, including the type of goods, distance, and infrastructure availability. A combination of different modes (intermodal transport) is often used to optimise efficiency and reduce environmental impact.
The benefits of using road freight
When opting to choose Radius Warehouse and Logistics Services, your delivery can benefit from the following advantages we offer:
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A dependable & dedicated service supported by a vast amount of experience, technology, and expertise.
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Daily Departures to European countries such as Italy, Spain, France, Holland, and more.
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Extensive surface through Europe, Scandinavia, and Ireland.
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Express/Next day delivery on some cargo.
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A fleet of vans and trucks of all sizes.
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An option for a road courier service for smaller items.
We also provide ancillary services, which are services that relate to cargo inspection, preparation of customs documentation, storage of transported good, or goods to be transported.
Our ancillary services cover…
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Documentation services.
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Nationwide collection and delivery in the United Kingdom.
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Express deliveries in the UK and globally.
Road freight through Europe for you
We at Radius Warehouse and Logistics Services encourage you to get in contact with us to see how our services can benefit you. Alternatively, you can get a quote from us directly, or visit our help and advice page for anything further you may need help with.
We hope that our blog has answered the question ‘Is European road freight capacity finally stabilising?’
With over 20 years of experience as an independent freight forwarder, you can expect quality service from us. In addition to being a member of BIFA, and trading under the standard trading terms of BIFA, We are also staffed by a dedicated core of enthusiastic and efficient professionals.
Our staff’s many years of experience in this industry welcomes your enquiries and hope you can join our loyal and superb client base.
