The Iberian Road Freight Sector Closes with 11% Drop in 2020

Iberia-Road-Freight-Sector-Drops-11%

Consulting firm, DBK confirms that the Covid-19 pandemic has caused a significant decrease in the demand for freight transport in 2020, with the Iberian market worth 16.8 billion euros, around 11% less than 2019, the first loss since the market recovery, starting 2013.

A Knock for a Recovering Market

DBK highlights in its sector studies into the Iberian market the fact that the sector has maintained sustained growth during 2013-2019, after the worldwide recession, with the sector turnover in 2019 reaching 18,850 million euros – an increase of 4.4% on the year before. The market value in Spain for 2019 was 15,800 million euros (an increase of 4.5%) whilst the Portuguese market grew in similar strength to 3,050 million, a 4.3% increase. The Spanish market is wholly dominated by domestic trade, with 80% of sales coming nationally, whilst in Portugal international transport sales hold a greater weight.

Other key takeouts from the DBK study include the fact that the market is comprised of smaller businesses with a high number of self-employed individuals who generally operate a single vehicle. In 2019, 110,788 companies formed the Iberia sector in 2019, with just over 100,000 located in Spain and the rest located in Portugal. The average size of fleets in both countries averaged about 2.5 vehicles per company, with the high transport capacity causing a change in the process of supply adjustment. This has meant that there has been a growing concentration of business in the largest groups or companies. However, with the market being divided into various business groups, the first five groups in the Iberian market only took away 13.2% of the total business volume in 2019, suggesting that the market is highly fragmented.

 

Source: Europneus

About the author

Adrian, located in Madrid, is joining the editorial team as a correspondent for the Valebridge Publications Ltd Group. Before starting in 2020 for Commercial Tyre Business, Adrian graduated with an English degree before working within marketing and recruitment in the non-profit sector. Recently he changed direction, undertaking a course in Marketing and International Business as a means towards moving into the journalism field, which he counts as his lifelong ambition.

Email: adrian.stuart@retreadingbusiness.com

Phone: (44) 1270 668 718

 

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