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Category: News Business Environment
Make-or-break year for transport sector.
2009 results for the transport sector were the lowest in decades. Some one-third of road transport companies will report a loss for 2009. Last year, 155 companies went belly up, an increase of 75 percent against 2008. These statistics are extracted from the Transport en Logistiek Nederland (TLN) Q4 economic cycle report, published in January. The report is based on a survey of 1,700 companies in the sector.
Overall sector payroll was reduced by at least 7 percent. 'Actual job losses are even higher, because this was a survey of active companies only', thus TLN. The majority of companies (54 percent) reported for the last quarter of the year a drop in business, turnover and profit against the last quarter of 2008, which was not that great either. 'Though in the past few months there have been some signs of improvement, sentiment in the sector is still negative'', thus TLN.
Transport volumes were higher in the past months of the year, but profit margins in the sector are still depressed. 'Many trucks stand idle. Whereas costs of personnel and fuel are rising. 'Narrow margins cause fierce competition in the sector', the sector organization notes. TLN predicts that 2010 will be a make-or-break year for many companies 'Survive or go under.' For the complete economic cycle report, please click here.
February 2010