European trucking affected by falling demand and expensive fuel

Experts have claimed that post-pandemic truck usage has declined significantly with lower driver numbers and an increase in empty miles.

In August, the European Road Freight Price Index for the second quarter, run by Ti, Upply and the International Road Carriers Union (IRU), showed a disconnect between freight rates and demand.

A shortage of drivers and rising fuel prices in the wake of the Russia-Ukraine war have pushed up interest rates, but “multiple indicators also point to weak demand for European road freight, with activity declining in all major economies and inflation rates weighing on them.” The report indicated that this affects consumer and business confidence.

Now, the strange situation of the epidemic is starting to return to normal. “In 2020 and 2021, the pandemic and Brexit disrupted the supply chain, but also saw an increase in custom work, which organically reduced the number of empty miles somewhat,” Clementi Theotokis, co-founder of Zeus Labs, said. lodestar.

He went on to say that the majority of freight volume comes from large companies, manufacturers and farmers, operating on specific trade routes.

However, declining demand, coupled with rising fuel prices, threatens an untenable situation for small trucking companies.

Mr Theotokis explained that around 70% of registered UK transport companies are owner-managed, operating fleets of less than 12 trucks.

“These fleets struggle to fill their trucks on both trips because of the time and effort it takes to locate a freight location that suits their fleet. They also have to factor in additional delays and travel, since return loads rarely follow exactly the same route as the way there.

Zeus Labs is one of a few companies looking to improve the trucking industry by matching truck drivers with cargo in haulage operations, working on the principle that from a profitability standpoint and from a CO2 standpoint, carrying something — even at a Low – is essential. Better than carrying nothing.

“Empty miles can be a sign of ‘inefficiency,’ and our platform consolidates freight in one place, so small fleets in particular can access returned loads easily,” Mr. Theotokis said.

“In addition, we identify exactly where our high volume and low volume are and specifically seek to close those gaps as well.”

According to Zeus, carriers using its platform recorded a 22% reduction in empty miles in 2021.

“However, the problem of empty miles is not just one of inefficiency – which can be mitigated to some extent – ​​but also unnecessary carbon emissions. To this end, the real solution is to switch to zero-emission vehicles, which we stand for and support.”