Local freight transporters turnover could reach record level of 75 billion RON in 2021 (analysis)

The turnover of local freight transporters could reach a record level of over 75 billion RON in 2021, and more than two thirds of freight in Romania was transported by road, according to KeysFin estimates.

According to data of the National Institute for Statistics (INS), quoted by the company, the volume of freight transported in Romania rose by 14% in 2021, year-on-year, to 449 million tonnes.

Freight transport by road rose by 15.1% to 307 million tonnes in 2021, freight transport by rail increased by 15.6% to 57.4 million tonnes, while maritime freight transport advanced by 12.5% to 53 million tonnes, transport on interior navigable waterways also increased by 5.2% over 2020, to 32 million tonnes, while freight transport by air increased by 1.9% to 41,000 tonnes, in 2021.

"As regards shares of transport means, KeysFin analysts observe an increase of road transport by 0.6 percentage points to 68.3% of the total in 2021. Followed by rail transport with 12.8% of the total (0.2 p.p. increase over 2020), maritime with around 12% of the total (annual reduction 0.2 p.p.) and that on interior navigable waterway with 7.1% of the total (annual contraction by 0.6 p.p.) in 2021," the company's release sent on Tuesday to AGERPRES mentions.

"If in 2020 we saw the reduction of turnover on the basis of changing consumption patterns (food retail to the detriment of long-term use goods) generated by the COVID-19 pandemic, for 2021 we estimate a return, even a significant advance on the basis of increases in volumes transported and the considerable distribution of inflation pressures on the entire production, distribution and commerce chain, to the record level of over 75 billion RON. Nonetheless, we expect an adjustment of the profitability margins following increases in costs for raw materials, fuel and utilities, increasing prices for crediting and labor," said Diana Florescu, economic analyst with KeysFin.

In 2020, the turnover of local freight transporters has dropped marginally, by 0.7% over 2019, yet it remained by 36% over the level of 2016, up to around 66 billion RON.

The net results of local freight transporters (net profit minus net loss) has increased in an accelerated rhythm, by 60% over 2019 and was by 135% over the level of 2016, reaching the historical maximum of 3.8 billion RON in 2020.

The number of companies in the freight transport industry increased by 7% over 2019 and was by 27% over the level of 2016, reaching the record level of 44,500 companies in 2020.

Cumulatively, the top 10 local freight transporters had a turnover of 5.8 billion RON, namely 8.9% of the total industry in 2020.

The number of employees in the local freight transport industry has dropped by 2% compared to 2019, yet it remained by 11% over the level of 2016, to approximately 184,000 employees in 2020.

The KeysFin analysis is based on annual, unadjusted, aggregated financial data reported by companies to the Ministry of Finance (at the end of the period) which have as their main activity domain rail and road transports, as well as other activities connected to transport. All figures are expressed in RON and the data was extracted in April 2022.

KeysFin offers 100% digital solutions to check the business environment, with financial and legal data, reports, graphs and analysis to the day about companies in Romania and abroad, in view of reducing the commercial risk. With a portfolio of over 700 clients, KeysFin is one of the most important suppliers of business information solutions in Romania.AGERPRES