Impact of the current economic crisis on the road transport industry

In today’s globalised economy, professional road transport is no longer merely a mode of transport but has become a vital production, distribution and mobility tool, driving economic, social and environmental progress throughout the world.

Through its unique, door-to-door goods transport services, road transport drives trade by interconnecting every business to all world markets, and is thus crucial for economic growth and competitiveness.

Through its safe, environmentally-friendly and affordable passenger transport services, road transport ensures the sustainable mobility of citizens and supports the tourism industry.

Road transport is the backbone of the real economy. This industry must therefore be promoted and facilitated to provide better rather than more transport, and to effectively tackle current and future economic, energy and environmental challenges.

The World Economic Forum (WEF) supports the IRU – Read

Due to the financial crisis which has turned into an economic crisis, the demand for vital road freight transport services has slowed down dramatically. This is confirmed by an IRU survey conducted amongst its Members in 74 countries. Comparing the current situation (January to June 2009) to the same period last year, the survey shows that international road transport is particularly severely affected by the global economic downturn. The survey also clearly indicates that financing transport operations is becoming increasingly difficult, which results in a dramatic increase in the number of bankruptcies.

• Bearing in mind transport market differences from one country to another, the survey highlights that, on average:
• Domestic road freight transport output (t/km) has decreased by 10-20%;
• International road freight transport output (t/km) is down by 20 to 30%;
• Revenue development (domestic transport) decreased by 10 to 20%;
• Revenue development (international transport) decreased by 20 to 30%;
• Freight transport rates are down by more than 10%;
• Driver employment has decreased by more than 10%;
• New truck registrations are down by at least 30%;
• Access to bank credit has become more difficult; and
• Bankruptcies are up by at least 20%.

Although forecasts remain elusive in the current situation, the road transport industry does not expect a recovery in the sector, with normal growth rates of 1.5%, before 2011.

IRU Road Transport Indices

• See IRU Road Transport Indices, tracked in 51 countries
• IRU urges governments to promote and facilitate road transport to drive the economic recovery. Read...
• Economic crisis hits road transport. Read...
• IRU Resolution on the impact of the economic crisis on road transport. Read... 

According to the tourist market, the same worrying situation will apply to the passenger transport industry. Indeed the taxi industry has witnessed 20% decrease in airport pick-up services.

The IRU urgently calls upon competent authorities to:

• ensure open markets and strive for the completion of the WTO Doha round;
• intensify efforts to eliminate neo-protectionist barriers to international road transport;
• reassess and reduce current taxes, and stop creating new taxes and charges notably through the revision of the Eurovignette Directive;
• make insolvency legislation more flexible to allow road transport companies to reduce their transport capacity and pursue profitable business operations rather than liquidating the entire company;
• induce financial institutions to provide adequate credit lines for transport operators to finance their investments and operations;
• induce financial institutions - through national central banks - to introduce a moratorium on interest on debts and leasing contracts;
• provide business incentives to allow transport operators to keep investing in innovative and clean vehicles;
• invest in lacking road infrastructure to remove bottlenecks and unnecessary related costs;
• avoid the reappearance of waiting times at borders, whereby procedural streamlining at low costs can provide important economic returns in these difficult times;
• recognise buses, coaches and taxis as economically and environmentally friendly transport modes and vital parts of the overall sustainable mobility chain;
• adopt a business-friendly 12-day driving derogation for international coach tourism, both in the EU driving and rest time rules and in the UNECE AETR Agreement; ;
• create a legal and administrative framework allowing the road transport industry to temporarily place skilled personnel on inactive status, without having to lay them off.

The IRU urges transport operators to:

• transport only if a profit can be made, if costs can be passed on and empty trips can be avoided;
• stabilise market prices by reducing transport capacities and place skilled personnel temporarily on inactive status without losing them as they will be needed when the crisis is over.

	Austria		Moldova (in Russian)
	Belarus (in English / in Russian)		Latvia
	Bulgaria		Poland
	Czech Republic		Romania
	Denmark		Russia (in Russian)
	Finland		Spain
	France		Switzerland
	Germany		Turkey
	Hungary		United Kingdom
	Kazakhstan (in Russian)		Ukraine (in Russian)
	Macedonia

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