Economic slowdown and Brexit taking its toll on European transport sector

Economic slowdown and Brexit uncertainty taking its toll on European freight sector

Germany, France and the Benelux states are now feeling the effects of the global economic slowdown compounded by continued uncertainty surrounding Brexit, according to the latest figures released by German logistics data specialist Timocom. 

According to Timocom’s latest quarterly barometer, the number of freight offers made on Europe’s largest freight exchange was 20% lower than in the same quarter last year. 

“The US government’s protectionist economic policies are hampering global trade, which in turn reduces the amount of goods exported. Export oriented countries such as Germany, France and the Benelux states are suffering the worst effects,” says Timocom’s business analyst David Moog. 

In total, the freight smart app, which companies can use to place and manage their freight transport offers on the freight exchange, hosted 21,817,810 offers in the second quarter; the number of offers for the same period last year was 27,565,605. Moog reports that the decline is largely affecting the transport of industry and investment goods, from the supplier industry amongst others.  

The impending Brexit is also taking its toll, says Moog. “After transport to Britain increased in the first quarter as companies increased the amount of goods in stock, we are now seeing a market downturn”. For example, the number of exports from Europe to Britain in the second quarter decreased by 56% in comparison to the same quarter last year, according to Timocom. 

This decrease comes despite the export growth seen in Southern Europe. Italy, Spain, Portugal and Greece transported significantly more goods to other European countries this quarter than in the previous year, with a growth of 21%. Moog added: “The fruit and vegetable season in these countries is in full swing.”

With more than 130,000 users and up to 750,000 international freight and vehicle offers daily, Timocom is the largest digital system for road transportation of goods in Europe.