DSV Road: We see a challenging year in freight. We stay optimistic, but cautious about the sharp development of the transport sector in 2024

The freight transport market in Romania will continue its growth trend in 2024, but more moderate than before, against the background of the uncertain economic context and geopolitical tensions, reports DSV Road, the third largest transport company transport of goods from Romania and Europe. Even so, internal freight will see its best year yet.

“We see in 2024 a challenging year for the freight transport market, given several disturbances at the national level, such as the transporters’ protests, but also at the international level, where tensions are taking place. Both the war in Ukraine and the war between Israel and Hamas are affecting logistics and transport chains. Operating in a global market, we are connected to everything that happens at the European and global levels. The fact that Germany, the largest European market, narrowly “missed” entering a technical recession says enough about the situation of the EU market. Even so, we remain optimistic but reserved regarding the increased development of the transport sector in 2024″, says Sergiu Iordache, Managing Director of DSV Road.

In 2024, companies will turn to efficient, fast-moving transportation solutions to help reduce freight costs. Thus, DSV Road expects an increased interest in groupage transport, which reduces transport costs by up to 80%, but also for intermodal.

The main predictions in the transport industry in 2024, according to the company DSV Road:

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1. Electric trucks, increasingly visible on Romanian roads

The freight transport industry in Romania is accelerating towards a greener future, and in this sense, electric trucks will start to be used for transporting goods on the first and last mile.

This transition to electric vehicles in the transportation industry can bring several benefits, including reduced emissions, reduced long-term costs, compliance with environmental standards, improved reputation, and spurred innovation.

2. Group transport will remain the most used mode of transport

Groupage transport remains the most demanded mode of transport at the market level, being preferred especially for import and, at the same time, gaining popularity in the export sector due to the multiple benefits it offers. These advantages include the flexibility to load a single truck with goods from multiple companies, with the ability to carry weights ranging from 10 kg to 2,500 kg, without the need to fully load the vehicle. This transport model enables cost optimization for companies, bringing them savings of up to 80%, and ensures speed in delivery to various destinations.

The upward trend in groupage shipping is largely fueled by the expansion of e-commerce and online services, as well as efforts to minimize inventory. Within DSV Road, the groupage transport service occupies a central position, representing 60% of the company’s total business. This demonstrates not only the continued relevance of this transport model but also its adaptability to current market needs.

3. Export of goods, an increasingly intense activity

A significant trend in Romania’s economic landscape is the increase in export activity. This trend is supported by several factors, such as infrastructure development, improvement of product and service quality, access to new markets and commercial partnerships, as well as adaptation to changes in the global economic environment. In the context of a continuously evolving economy, the growth of export activity can contribute to the consolidation of financial resources and the creation of a favorable framework for the long-term development of the country.

4. Intermodal transport is growing rapidly

The combination of two modes of transport, known as intermodal transport (for example, rail and road), is becoming more and more relevant on the Romanian transport market. This evolution is due to lower costs and a positive impact on the environment, an increasingly important concern for companies today. Within the DSV Road, intermodal transport ranks second in the ranking of the most requested services.

5. Green Transport solutions are gaining speed in Romania

Adaptation to European Union standards and European directives has generated a significant increase in the interest of Romanian companies in reducing CO2 emissions and, implicitly, in adopting Green Transport solutions. Even though this sustainability initiative is in its early stages in the country, concern for environmental issues is becoming increasingly relevant, especially in a context where ESG (environmental, social and governance) strategy has become an essential component in the strategy of business of companies.

In this context, DSV Road has developed the CO2 Reporting Tool, a system for monitoring the impact of the carbon footprint generated by the road transport of goods. This system allows the real-time reduction of carbon emissions per cargo lot transported and, implicitly, per truck.

Recently, the DSV Group, of which DSV Road is a part, launched an ambitious sustainability program, investing approximately DKK 1 billion (over EUR 134 million) in green projects, sustainable initiatives and innovation over the next five years.

Through this special program, DSV Road from Romania is actively engaged in environmental protection initiatives, accelerating the development of the Green Transport division by implementing new projects aimed at reducing carbon emissions.

“We attach great importance to green services, and by using our carbon monitoring technology, companies can assess the impact on the environment. This approach is in line with DSV Road’s mission to reduce the amount of carbon emissions by up to 40% CO2 until 2030”, explains Mihai Teodorescu, Country General Manager and Sustainability Ambassador, DSV Road.