22.01.2021

The main trends in development of Ukranian car freight market in 2021

The freight market is one of the most dynamically developing sectors of Ukranian logistics market. With the emergence of new priority directions of delivery to the EU countries, in the context of the revision of priorities for delivery to the countries of the Near Abroad in favor of Belarus, Moldova, Kazakhstan, with an increase in interest in intercity road transportation in Ukraine, the end of 2020 and the year 2021 promise to bring general growth in the industry. However, this growth occurs rather “in spite of”, since the state support for the transport industry itself is insufficient.

Cargo transportation is considered an indicator of the development and healthy functioning of the economy of the region and the country as a whole. If we analyze the volume and nature of transportation, we can draw conclusions about the development or extinction of entire sectors of the economy.

According to official statistics, the largest supplier of logistics services in Ukraine is railway transportation - approximately 60% of the entire transportation market. Such delivery is theoretically beneficial for orders over long distances and for large volumes of deliveries.

However, in Ukraine, there is a significant wear and tear of the railway bed and rolling stock, which forces the railway management to constantly increase prices for their services. With the significant cost of railway transportation, customers are looking for and finding alternative ways for cargo tranportation, namely road transportation.

High maneuverability, rational adaptability to rapidly changing market requirements and the legal framework help road carriers find customers and constantly increase the volume of cargo transportation - more than 28% over the past year in Ukraine as a whole. Analysts say this trend will continue in 2021.

In addition, the analysis of trends in the logistics market allows us to conclude that in the total volume of cargo transportation, long-distance road transport, oversized cargo, international cargo transportation, the provision of additional services by cargo carriers to customers, and the concentration of large volumes of cargo in the hands of reputable transport companies capable of providing comprehensive services is becoming more and more important.

Thus, the rise of the transport industry has significant chances to continue in 2021. Although, of course, much will depend on the general political and economic situation in the country and on foreign trade markets.