Road freight transportation market in Europe to reach $596.9 billion by 2025 — Allied Market Research
The Europe road freight transportation market will expand at a compound annual growth rate of 6.5% from 2020 to 2025, and is estimated to reach $596.92 billion by 2025, according to a report issued April 19 by Allied Market Research. A “surge in focus of manufacturers and retailers on core competencies, rise in trading activities due to globalization and development of the e-commerce industry” have fueled the growth, according to the research firm. But “risk toward goodwill of manufacturers and lack of control of manufacturers on logistics service hinder the market growth.”
European freight demand could reach pre-pandemic levels by year’s end — SCI Verkehr study:
The freight-rail realm in Europe “has been much less affected by the Covid-19 crisis than it has been by the [related] financial crisis,” according to “The European Railway Market 202 — Covid-19 Crisis and Market Trends,” a study issued April 12 by global rail/logistics consultant SCI Verkehr GmbH. Freight demand “has been rising again” since fourth-quarter 2020, and “pre-crisis levels” could be reached by year’s end, the study says.
Transportation and telematics:
New capabilities in commercial vehicle video telematics solutions “are powering a 29% growth in video solution shipments by 2026, generating revenues exceeding $8 billion,” according to a report issued April 7 by global tech market advisory firm ABI Research. “Regulatory measures in North America, Europe, and China are bringing more tech into fleets. The tremendous growth in e-commerce also bolstered last-mile deliveries and associated drivers, many without previous commercial driving experience,” says Susan Beardslee, ABI Research’s principal analyst, freight transportation and Logistics. “All these factors are driving demand for dashcams, driver monitoring systems, external cameras and ADAS solutions.”
Global supply chain leaders say they need better technology, platforms and data to meet cost goals — IHS Markit survey:
Nearly two-thirds of supply chain professionals surveyed recently said they lack the tools, data and platforms needed to diversify their supply chains and optimize their processes, according to the 2021 Supply Chain Insights Global Survey from IHS Markit. “Supply chains can no longer operate as siloed, disconnected functions; recent events such as the COVID-19 pandemic and the Suez Canal saga have illustrated the need for supply chains to be resilient and agile,” said Wilhelm Greyling, executive director, supply chain solutions, IHS Markit, in an April 14 press release. “Supply chains can only truly be optimized via end-to-end collaboration and visibility.” Conducted earlier this year, the survey asked respondents to identify their priorities and capabilities in three industry capabilities: strategy and process, platforms and technology and intelligence, insight and expertise across nine functional elements. Responses were compiled from 340 supply chain leaders across 60 countries and 33 industries. ESG considerations rated near bottom of supply chain leaders’ priorities, with only 51 percent reporting having a strategy in place, HIS Markit said.
Cold chain logistics:
The global cold chain logistics market will hit to $585.10 billion by 2027, growing at a compound annual growth rate (CAGR) of 17.9% from 2019 to 2026, Allied Market Research predicts in a forecast issued April 7. The firm expects the global cold chain logistics market across Latin America, Middle East and Africa to register the highest CAGR of 22.0% during the forecast period. But “the market across Asia-Pacific is estimated to hold the lion’s share during the forecast period,” according to the press release. “Increase in refrigerated warehouses, adoption of automated software, and growth of processed food industry and pharmaceutical sector have boosted the growth of the global cold chain logistics market,” added Lalit Katare, a research analyst, automotive and transportation at Allied Market Research. “However, dearth of standardization and high operational costs hamper the market growth. On the contrary, advent of RFID technology is expected to open lucrative opportunities for the market players in the future.”
Germany:
“In light of the current situation,” container shipping line Hapag-Lloyd has ordered 150,000 twenty-foot equivalent units (TEU) of standard and reefer containers from China, according to an April 134 press release. The current situation being: Hapag-Lloyd “needs significantly more than the normal number of boxes to carry the same volume because boxes are turning slower,” the Hamburg, Germany-based company said. Some of the boxes already have been delivered to Hapag-Lloyd and integrated into its existing container fleet, but the majority are expected to be delivered in the upcoming months. Hapag-Lloyd has ordered 8,000 TEU of special containers to be used for over-sized or dangerous goods. “The container shipping industry is currently seeing unprecedented demand, which has led to a shortage of containers all over the world,” said CEO Rolf Habben Jansen. “With its recent container orders, Hapag-Lloyd is contributing to efforts to ease the current situation and will be able to offer its customers a much better service.” … Meanwhile, Hapag-Lloyd announced it would begin offering direct weekly sailings between China, Southeast Asia, Kenya and Tanzania in late April. Seven 2,800 twenty-foot-equivalent units will be deployed in the service, dubbed the East Africa Service 3.
India:
Indian Railways "is leaving no stone unturned in the battle against COVID-19," India Minister of Railways Piyush Goyal said in an April 18 tweet. "We will be running oxygen express trains using green corridors to get oxygen in bulk and rapidly to patients." Specifically, the railway will transport liquid medical oxygen and oxygen cylinders. A "Green Corridor" has been created to facilitate "fast movement" of said trains, railway officials said. "Except for nine sectors, supply of oxygen for industrial purposes by manufacturers and suppliers will be prohibited from April 22 as a temporary measure," Goyal said in another April 18 tweet. "This has been done to ensure adequate supply of oxygen to hospitals." Government officials recently reported a surge in COVID cases in India. … Indian Railways officials dedicated the 32-kilometer Hansdiha-Godda line, which will “benefit in better transportation facility, cost effective and quicker movement of commodities” and boost social-economic development in Dumka and Godda in Jharkhand, according to a press release issued April 8 by the Indian government. Along with the line, two “major” bridges and 33 “minor” bridges were constructed. “With this new Hansdiha-Godda Rail line, the area would develop at a faster pace, generating more employment opportunities...” said India Minister of Railways Piyush Goyal, adding that 36 rail projects currently are “being executed” in Jharkhand. … Rail India Technical and Economic Service (RITES) Ltd. and SMEC International Pty Ltd. signed a contract with Haryana Rail Infrastructure Corp. (HRIDC) to provide general consulting services for the construction of the Haryana Orbital Rail Corridor. The 120-kilometer corridor — an electrified rail line for passenger and freight traffic — will run from Palwal to Sonepat vis Sohna, Manesar and Kharkhoda. Funded by the Asian Infrastructure Investment Bank, the project should be completed in five years.
Northern Europe:
A.P. Moller – Maersk is “picking up the pace” of its AE19 service — a combination of a short-sea and intercontinental rail service between Northern European ports in Finland, Poland, Germany and Scandinavia and ports in Korea, China and Japan, the integrated container logistics company said in an April 12 press release. Trains leaving North Europe with destination to the Russian Far East via the ports of St. Petersburg and Vostochniy have been upgraded from fortnightly to weekly, and trains coming westbound are scheduled four times a week, up from three. To carry growing volumes from Asia shippers, Maersk will deploy additional vessel between Pusan and Vostochniy. “AE19 enjoys one of the highest service reliability levels among intercontinental and ocean liner services, and it is quicker than Suez routes,” said Zsolt Katona, Head of Maersk Eastern Europe. The transit train is crossing the territory of Russia in 12 days from the Baltic Sea all the way to the Russian Pacific Coast, resulting in an overall transit time between Europe and Asia of 25-30 days.
Russia:
In 2020, cargo theft in Russia declined by 35%, despite a 10% annual growth in the total road freight market, according to a report published this month by international freight insurer TT Club; IMPACT, a digital cargo theft information and prevention exchange; and the Transported Asset Protection Association. “The COVID-19 pandemic that took hold through 2020 impacted historical cargo theft trends in a multitude of ways,” the report writers said in an April 13 press release. “Local and national restrictions on general movement affected the thieves’ ability to move undetected when undertaking their activities, influencing how they operated. The economic impact of the pandemic influenced market forces and therefore the cargoes primarily targeted by criminals.” Food and beverages remain the chief targets, although “type of goods stolen were more necessities rather than luxury items,” according to the report. “The volume of incidents fell by nearly a third, but these goods still made up 28% of total losses.” Metals was the second-largest target, but represented a “much reduced share” — 13% in 2020 against 24% the previous year.
Spain:
For the first time in its history, global fruit and vegetable distributor SanLucar is “taking its produce to Germany by train” via Transfesa Logistics express refrigerated railway service, according to a press release. During the initial phase, Transfesa Logistics will send one container per week from Valencia to Cologne “on a 48-hour journey,” according to the press release. The aim is to “gradually increase the load,” depending on results. “The services provided by Transfesa Logistics provide a sustainable solution using transport by rail, so we have decided to carry out the first trials using this mode of transport.” said SanLucar Transport Manager Jasmin Hiesberger.
United Arab Emirates:
Etihad Rail, the developer of the UAE’s National Rail Network, will transport raw materials from Ras Al Khaimah to Abu Dhabi for quarrying company Stevin Rock, the companies announced April 1. An estimated 3.5 million tons of construction material will be carried annually from Stevin Rock’s Al Ghail quarry in Ras Al Khaimah to Abu Dhabi via 500 annual train trips. Each train will measure one kilometer in length, hauling 70 wagons with carrying capacity of 7,000 tons per journey. One-hundred thousand truck trips will be reduced annually as a result of the agreement, the companies said.
United Kingdom:
GB Railfreight (GBRf) and Electro-Motive Diesel Ltd. (EMDL), a legal entity of Progress Rail, a Caterpillar Co., signed a contract extension to the full-service provision arrangements between businesses, which have been in place since 2012. The new contract extends the size of the GBRf fleet supported by Progress Rail, according to a March 26 press release. It also expands repair capacity at both the Doncaster and Peterborough depots and increases the number of field service engineers joining the team. The contract supports the GBRf Class 66 locomotive fleet and prepares the ground for the newly re-engineered Class 69 locomotives, the first of which are on trial at Severn Valley Railway. Progress Rail also will be fitting the PR UptimeTM digital prognostic equipment to the Class 66 fleet.
