Increasing number of freight forwarders in Europe declaring bankruptcy

Companies continue to struggle with the deteriorating economic situation in Europe.

The European Cargo Association of International Freight Forwarders (ELVIS) AG has analysed the situation in the freight forwarding industry in the second half of the year and noted a critical situation. Companies are struggling to cover their own costs, which has led to shrinking car fleets.

According to preliminary information from the Federal Statistical Office of Germany, the number of regular insolvencies applied for rose by 22.9% in October 2024 compared to the same month last year. The highest incidence of bankruptcies is seen in the transport and warehousing sectors. The German Chamber of Commerce and Industry (DIHK) expects more than 20,000 corporate bankruptcies this year.

Official data from the UK Department for Business and Trade show that 494 transport companies had to declare bankruptcy in 2023. According to Motor Transport, this figure is almost double that of two years ago. The Road Haulage Association (RHA) has called for government support to ease the financial burden on transport companies.

The situation in the transport sector is also unstable in Belgium and France. According to L'Institut Transport Routier et Logistique Belgique (ITLB, Belgian Institute of Road Transport and Logistics), the transport sector saw a record number of bankruptcies in the third quarter of this year, the highest since the Great Depression. ITLB expects the number of bankruptcies among Belgian freight forwarders to reach 300 by the end of the year, twice the national average for the period between 2014 and 2021.

According to the Union TLF (Union of Transport and Logistics Companies of France), 603 transport companies filed for bankruptcy in the second quarter of this year, 45% more than in the same period last year and 73% more than two years ago.

The number of company restructuring proceedings initiated in Poland in the first half of 2024 was also significantly higher than in previous years, reflecting the deep difficulties in the European road haulage industry.