The Covid-19 pandemic and restrictions on movement, have had enormous impact on commercial road transport operators and those they serve, the International Road Transport Union (IRU) said.IRU said Covid-19-linked disruptions in the global logistics chain would see a “dramatic” 18 per cent decline valued at €551 billion in road freight transport turnover in the 2020 financial year.This estimation is based on 78 major economies where the yearly turnover of road freight represents three per cent of nominal Gross Domestic Product (GDP).Senior Adviser, IRU, Jens Hügel disclosed this at a transport webinar.In Africa, excluding North Africa, the impact will be somewhat softened, to an 11 per cent drop in revenue at €6billion, said Hügel
The most impacted regions are Asia-Pacific and Middle East-North Africa, with a 21 per cent drop in revenue.Hügel said well-functioning commercial road transport services are fundamental to drive economic and social recovery during and after the pandemic.“The introduction of restrictive measures has slowed down transportation across the globe with disruptions in the volume of operations due to movement restrictions, health screening and border controls and closures,” says Hügel.“If you go one level down, to the road transport companies, you see that the revenue decline is, on average, 40 per cent,” he adds.For many transport operations, such as companies involved in the transport of automotive parts, clothing, flowers and construction materials, there has been a complete standstill, Hügel noted.Empty running has increased by up to 40 per cent, with new transport contracts declining by between 60 per cent and 90 per cent, which is “really worrying, so the outlook is really grim.”Passenger transport revenue during lockdown periods has also declined, on average, by between 50% and 100%, with up to a 100 per cent drop for companies running international services and tourist coach services.“Micro, small and medium-sized enterprises, which make up more than 80% of the transport industry, are on the brink of going bankrupt,” said Hügel.“This is exacerbated by the fact that countries are actually not coordinating their (COVID-19) measures, so it is really difficult for transporters to plan their operations.”In the IRU’s recovery plan, the union suggests that road transport companies receive an array of financial grants and loans, including the refinancing of existing credit, especially vehicle loans, at low or zero per cent interest rates.
Payment deadlines should also be extended, while the temporary waiving of taxes, user charges and duties, including corporate taxes and fuel tax, should also be considered.
Insurance premiums can also be reduced, or waived for non-operational vehicles.