Eng
Europe is experiencing a marked increase in the number of insolvencies in the transport sector. The crises of the past few years have presented the transport and logistics industry with increasing challenges and problems, not only in Germany but also across Europe. In France, the number of bankruptcies has reached its peak since 1990, and in Poland more than 2,000 companies have initiated restructuring this year alone in order to avoid insolvency and liquidation.
According to provisional estimates of the Federal Statistical Office (Destatis) issued on 9 August 2024, the number of regular insolvency applications registered in Germany increased by 13.5 percent in July 2024 compared to the same month last year. The majority of insolvencies occurred in the transport and storage sectors. This trend is expected to persist until the end of 2024.
According to the latest report from the Union of Transport and Logistics Companies of France (Union TLF), the transport sector is facing a persistently weak business climate and rising production costs, resulting in an alarming increase in corporate bankruptcies. News portals Ellisphere and L‘Officiel des Transporteurs report that 603 road transport companies filed for bankruptcy in the second quarter of 2024, an increase of 45 percent compared to the same period last year. Over the past two years, the increase has been 73 percent.
In the first half of 2024, 2,261 companies initiated restructuring in Poland, compared to 2,071 in the previous year. Just eight years ago, when the rules on restructuring came into force, only 212 restructuring cases were initiated. Fewer orders, lower freight rates, and rising operating costs have contributed to the deteriorating financial position of many companies. Restructuring may be the only solution for many companies to avoid bankruptcy proceedings.
In the UK, more companies filed for bankruptcy last year than during the 2008 financial crisis. The road freight transport industry has been hit particularly hard. Nearly 500 carriers closed last year and more than 250 so far this year, an increase of 10 percent over the same period in 2008.
Source: trans.info