Abstract
The Strategies for Profitability in European Road Transport report is one of a series of three reports recently published by Analytiqa. These reports are the result of an extensive primary research undertaking that focused on companies running commercial vehicle fleets in excess of fifty vehicles within the European Road Transport sector.
The aim of the series is to offer a comprehensive insight into the factors that affect operational strategy, vehicle acquisition, maintenance and overall company performance. Specifically, the Strategies for Profitability in European Road Transport report focuses on the flow of goods around Europe and the factors which impact on the profitability of the fleet operators that execute this economically critical activity.
Analytiqa interviewed in excess of one hundred fleet operators throug hout Eastern Europe, Western Europe and Scandinavia. Transport Managers, Fleet Managers, IT Managers, Business Development Managers and owner operators of many well established 3PLs and Road Haulage companies contributed timely and strategic insight enabling this report to offer a depth and breadth of insight that will deliver value to the bottom line of any company operating a fleet within the European road network.
Table of Contents
Chapter 1.0 EXECUTIVE SUMMARY
- 1.1 Market Size
- 1.2 The Bottom Line
- 1.3 Commercial Agreements
- 1.4 The Key Issues
- 1.5 Technical Developments
- 1.6 Conclusion and Future Developments
Chapter 2.0 INTRODUCTION
- 2.1. Report Aim
- 2.2 Report Methodology
- Table 2.1: Geographical Scope of Companies' Operations, 2005
- Table 2.2: Operating Sector of Transport Companies, 2005
- Figure 2.1: Operating Sector of Transport Companies, 2005
- 2.3. Report Structure
- Market Size
- The Bottom Line
- Commercial Agreements
- The Key Issues
- Technical Developments
- Conclusion and Future Developments
Chapter 3.0 MARKET SIZE
- 3.1 Introduction
- 3.2 The Market for European Road Freight Transport
- Table 3.1: Road Transport Activity by Type of Operation by Country, 2004
- Table 3.2: Index of Inland Freight Transport Volume Relative to GDP, in Europe, 2000-2004
- Figure 3.1: Index of Inland Freight Transport Volume Relative to GDP, in Europe, 2000-2004
- Table 3.3: Index of Inland Freight Transport Volume Relative to GDP, by Country, 2000-2004
- 3.3 Trade Lanes in European Road Freight
- Figure 3.2: Intra-EU Road Freight Transport, Shares of Main Country to Country Flows, 2004
- Table 3.4: Main country to country flows in Intra-EU International Freight Transport, 2004
- Figure 3.3: Main country to country flows in Intra-EU International Freight Transport, 2004
- Table 3.5: Goods Leaving the Country, by Main Partner, 2004
- Table 3.6: Goods Entering the Country, by Main Partner, 2004
- Table 3.7: Goods Leaving a Country, by Haulier Nationality, 2004
- Figure 3.4: Less than 50% of goods leaving the UK are carried by domestic hauliers
- 3.4 Modal Splits in European Freight Transport
- Table 3.8: EU15 Modal Split in Inland Freight, 1990-2005
- Figure 3.5: EU15 Modal Split in Inland Freight, 1990-2005
- "One hundredth of Poland' s 150,000 miles meets European Union norms"
- Table 3.9: ACC10 Modal Split in Inland Freight, 1990-2005
- Table 3.10: Road share of inland freight transport in Europe, 1995-2004
- Figure 3.6: Road share of inland freight transport in Europe, 1995-2004
- Table 3.11: Road share of inland freight transport by Country, 1995-2004
- "We would like to make use of the UK' s rail network since that is a key part of our business in Germany"
Chapter 4.0 THE BOTTOM LINE
- 4.1 Introduction
- 4.2 European Logistics Markets
- 4.3 Revenue as an Indicator of Overall Performance
- Figure 4.1: Revenue Performance by Geographical Scope of Operations, 2005
- Table 4.1: Over Half of Pan European Operators Performed Well in Terms of Revenues, 2005
- "Don' t run more - run smarter"
- Figure 4.2: Revenue Performance by Average Annual Vehicle Mileage, 2005
- Table 4.2: Average Annual Mileage the Same Regardless of Revenue Performance, 2005
- Figure 4.3: Revenue Performance by Fleet Size of Transport Operator, 2005
- Table 4.3: Most Fleets Over 500 Performed Well on the Revenue Front in 2005
- 4.4 Volume as an Indicator of Financial Performance
- Table 4.4: Nearly Two-Thirds of Single Country Operations Increased Volumes in 2005
- Figure 4.4: Volume Performance by Operating Scope, 2005
- Table 4.5: Clocking up the Miles No Guarantee of Increasing Volumes in 2005
- Figure 4.5: Volume Performance by Average Annual Mileage, 2005
- Figure 4.6: Transport Operator' s Volume Performance by Fleet Size, 2005
- Table 4.6: Bigger Doesn' t Equal Better Where Volume is Concerned in 2005
- 4.5 Maintaining Margins - More than Just Hard Work
- Figure 4.7: Share of Respondents Reporting Decreased Margins, by Fleet Size in 2005
- Table 4.7: Almost One-Third of 50 - 100 Piece Fleets Report Decreased Volumes in 2005
- Figure 4.8: Respondents Reporting Decreased Margins, by Geographical Operating Scope, 200542
- Table 4.8: Almost Two-Thirds of Regionally Operating Fleets Reported Decreased Margins, 200543
- Figure 4.9: Share of Respondents Reporting Decreased Margins, by Mileage, 2005
Chapter 5.0 COMMERCIAL AGREEMENTS
- 5.1 Introduction
- 5.2 Freight Rate Fluctuations Point to Health of Industry
- Figure 5.1: Freight Rates Changes in European Road Transport, 2004-2005
- Table 5.1: Half of Respondents Report Freight Rates as being Lower in 2005 than in 2004
- 5.3 Fuel Surcharge - All, or Nothing, or Somewhere in Between?
- Figure 5.2: Fuel Surcharge Implementation Success in 2005
- Table 5.2: One Third of Respondents Have Fully Implemented Fuel Surcharge, 2005
- 5.4 Commodity Service or Valued-Added Partner?
- Figure 5.3: European Road Transport Operators Place Core Operational Investment Ahead of
- Business Development and Innovation in 2006
Chapter 6.0 THE KEY ISSUES
- 6.1 Introduction
- 6.2 Major Issues Impacting European Road Transport Operators
- Figure 6.1: Fuel Costs Head the List of Factors Affecting Transport Providers
- Table 6.1: Most Important Issues Affecting European Transport Providers
- 6.3 Recognising Drivers as a Key Source of Competitive Advantage
- Figure 6.2 Impact of Driver Shortages in European Road Transport
- Table 6.2: Driver Shortage Troubles Ease in 2005
- 6.4 EU Enlargement
- Figure 6.3: Impact of EU Enlargement on European Road Transport Operators
- Table 6.3: Almost Half the Respondents Say "Low" to EU Enlargement Impact
- 6.5 Legislation
- 6.5.1 Social Legislation
- 6.5.2 Environmental Legislation
- 6.6 Rising Costs
- Figure 6.4: How Much Did Fuel Costs Really Affect Businesses in 2005?
- Table 6.4: The Impact of Fuel Costs on Hauliers in 2005
- 6.6.1 Alternative Fuels
- Case Study Alternative Fuels Focus
Chapter 7.0 TECHNICAL DEVELOPMENTS
- 7.1 Introduction
- 7.2 Technology Implementation in European Road Transport
- Table 7.1: Three Quarters of Companies Opt for TMS Software Package
- Figure 7.1: One-in-Six Transport Companies Rely on Manual Systems
- 7.3 Transport Management Systems
- Figure 7.2 The Time Frames of TMS Installation
- Table 7.2: Over One-Quarter of TMS Implemented Within the Last Three Years
- "We don' t use a TMS - no matter which one you look at you won' t get anything which meets all your needs, so we decided to do without"
- 7.2.1 Telematics Systems
- "The majority of telematics systems data does not get analysed at all"
- Table 7.3: One-Fifth of Hauliers Consider Trace and Trace a Low Priority
- Figure 7.3 How High a Priority is Track and Trace Technology to Transporters?
- 7.3 Digital Tachographs
- Digital v analogue: what seems to be the difference?
- 7.4 Proof Of Delivery
- Table 7.4: One-Fifth Put Electronic PODs as "Very high" on the List of Priorities
- Figure 7.4: Importance Attached to Offering an Electronic POD Service
Chapter 8.0 CONCLUSION AND FUTURE DEVELOPMENTS
- 8.1 Introduction
- 8.2 Market Trends
- Table 8.1: EU15 Modal Split in Inland Freight, 2005-2030
- Figure 8.1: EU15 Modal Split in Inland Freight, 2005-2030
- Table 8.2: ACC 10 Modal Split in Inland Freight, 2005-2030
- Figure 8.2: ACC 10 Modal Split in Inland Freight, 2005-2030
- 8.3 Corporate Growth Strategies
- Growth through acquisition - The DSV strategy
- "Specialist knowledge and skills mean astute purchases of smaller players can boost revenues of even the largest operators."
- "Expansion not out of but, in addition to, standard transport services is important"
- "Beyond Western Europe India, China and Eastern Europe are key target areas for growth and expansion"
- 8.4 Investment Priorities
- Figure 8.3: Key Investment Areas for European Road Transport Operators, 2006
- 8.5 Future Threats and Opportunities in European Road Transport
- Figure 8.4: The Most Important External Changes Fleet Operators Would Like to See in 2006
