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Road transport company losses escalated during COVID-19

There is a difficult road ahead
There is a difficult road ahead
According to new World Road Transport Organisation (IRU) research more than 3.5 million operators globally are facing unprecedented financial losses this year, as a result of transport restrictions and the overall economic downturn caused by COVID-19.
Goods transport companies globally expect an average 18% decline in turnover in 2020, totalling €551 billion.
The sector is significantly impacted in the Middle East and North Africa (-22%) and Asia (-21%). In Europe it is down €64 billion (-17%).
Companies in Argentina, China and Iran face more than 30% decline in their businesses.
Both goods and passenger transport companies reported that more restrictions were put in place than facilitation measures during peak confinement periods, further impacting the industry.
“Road transport services are fundamental to economies and communities everywhere,” said IRU Secretary General Umberto de Pretto. “These new findings are alarming. Every single road transport operator that goes bankrupt will impact the movement of people and goods.”
“Our research points to the immediate need for measures targeted to the industry that match the scale of the current situation. Even at the peak of the crisis, road transport remained flexible, operational and continued to play its unique role. Now, global recovery efforts are endangered without clear government action to support road transport operators.”
There is a difficult road ahead