Despite the European road freight sector largely showing a picture of weak recovery, amidst an uncertain, challenging and complex market environment, our European operations are expanding and the team continues to grow.

The market moderation seen in the second half of 2022 has spilled over into 2023 and as a result, the European road freight market is projected to lose speed in 2023, expanding by only 1.4% in real terms. 

Ti’s latest State of Logistics Road Freight Survey 2023 reveals that 84% of road freight operators are currently experiencing increased pressure on margins as costs soar and demand from their customer base weakens. 

The market appears to be recalibrating after experiencing a hefty double-digit surge in 2022, but it’s doubtful that it will return to pre-pandemic conditions, especially with capacity shortages and any jump in demand from European economies might further exacerbate the shortage of drivers. 

As volumes dropped off in Q1 and 2, the correlated increase in available capacity eased pressure on rates, but capacity is often constrained by driver shortages. 

The outlook is for rates to stabilise, although seasonal demand may support higher rates and they are expected to remain at a higher level than their pre-pandemic base. 

Despite shrinking industrial production and rising costs, the need for road transport remains high in many sectors, with targeted growth and expansion within the EU road freight sector a strategic priority for Metro’s support of customers, particularly in the automotive, manufacturing, chemical and food industries.

Major investments are being ploughed into European rail freight infrastructure, including in the UK, while UK Export Finance (UKEF) is helping finance a high-speed 286 km electric rail connection in southern Turkey, conditional to UK exporters supplying the project.

On a less positive note, road transport in Germany is facing a drastic increase in the HGV motorway toll charge, to fund the development of rail infrastructure.

Berlin plans to increase the LKW-Maut toll for a 40-tonne truck from €0.19 to between €0.35 and €40 per kilometre, depending on various factors, from 1st January 2024, which means hauliers could face up to a 70-80% increase in road toll charges. 

The motorway freight traffic toll was previously used exclusively for road improvements, but from 2024 Berlin wants the increase in road tolls from the new CO2 surcharge to be earmarked for rail infrastructure modernisation, which would be a significant boost for the rail sector.

Metro’s road freight teams are located close by manufacturing hubs in Birmingham, Desford and Wythenshawe, with new recruits recently joining the latter location and commercial teams.

To learn more about our expanded European FTL/LTL capability, including our Customs Brokerage (CuDoS) and European Distribution (EU/DDP) solutions EMAIL Richard Gibbs. 

From next Wednesday the 31st May operational road transport equipment can include longer semi-trailer (LST) combinations up to 18.55 meters in length, which is an increase of 2.05 meters on today’s standard size.  

The government has calculated that the additional volume created by the extra 2.05 meter length will result in 8% fewer journeys than current trailers and take one standard-size trailer off the road for every 12 trips.

The use of longer lorries on British roads follows an 11-year safety trial, which showed that LSTs were involved in around 61% fewer personal injury collisions than conventional lorries.

The Department for Transport (DfT) says that introducing LSTs, is an important, easy and affordable measure to continue to reduce CO2 emissions from the haulage industry without significant technological and infrastructure development.

The road freight industry welcome the move, saying it would mean more goods could be transported by fewer vehicles.

Under the new rules, operators will be legally required to carry out LST risk assessments and ensure they take appropriate routes.

In addition to these new legal requirements, operators will also be expected to put in place extra safety checks including driver training and scheduling, record keeping, training for transport managers and key staff, and loading of LSTs.

Despite their extra length, the new LSTs will be subjected to the same 44-tonne weight limits as standard HGVs, but are expected to create almost £1.4 billion in net economic benefits by ensuring more goods are carried on fewer vehicles.

However the Road Haulage Association urged the government to go further by increasing the permitted weight to 48 tonnes, which will be increasingly important when the industry roll out zero-emission trucks to compensate for the increased weight from batteries.

Grant Liddell, Metro managing director commented, “Our manufacturing, retail and shipping customers depend on road transport and these new longer lorries will make a big difference, by increasing operational capacity, while reducing carbon impact and driving economic efficiencies. We welcome an initiative that will add value, while reducing congestion, lowering emissions and enhancing the safety of British roads.”

For the right type of cargos and transport situation LSTs will be a cost-efficient, environmentally prudent alternative to conventional vehicles. 

If you would like to explore the potential of LSTs and the benefits of our road transport solutions, EMAIL Matt Paxton-Rhodes to begin a conversation.