Market Trends of Czech Republic Freight And Logistics Industry
Ecommerce Growth in the Region
As the region's e-commerce industry grows, more people need logistics services, which is good for the logistics business. Even though the COVID epidemic will force retail stores to close in 2020, the Czech Republic has made great progress in the growth of eCommerce.The income from e-commerce grew by 26% from the previous year to a new high of about USD 9 billion (CZK 196 billion).The European Union changes the way VAT is handled for B2C e-commerce merchants and marketplaces. This includes making a one-stop shop for EU VAT returns and ending the exemption for low-value imports.The goal is to make it easier to stay in compliance so that there is more cross-border online trade and more trade in the EU's digital single market.
Online businesses have always grown the fastest, and sales at stores that sell domestic goods have also grown at a rate of more than 10% per year. Aside from food stores, other shops, like those that sell things for the home, have reported higher sales. Sales of logistics and other e-commerce services are also likely to rise.
Increase in Road Freight Transport
In 2023, the European domestic road freight market is expected to increase by 0.7% in real terms, while the European international road freight market is expected to grow by 2.1%. Ti forecasts that the region's total road freight market would grow by 2.4% over the next five years, reaching EUR 420,150 million (USD 46.11 million) by 2026. According to reliable trade projections, the international road freight industry will grow faster than the domestic market over the next five years, despite being the smaller of the two.
Road transport costs in Europe are expected to surge in 2022, paralleling the astonishing growth in diesel fuel prices. According to the most current UPPLY / IRU / TI White Paper, average transport prices in Q3 2022 were 19.6% higher than in Q3 2021. This is in response to both reduced capacity and increased demand, as well as increases in the cost base, notably fuel costs. Although high taxes can occasionally moderate fuel prices, the current spike in diesel prices is quite likely to have resulted in fuel expenses approaching 50% of truck operating costs. Price increases have been exacerbated by increased demand for road freight services.
Czechia informed the Commission of its plans to assist operators of (i) rail passenger and freight transport and (ii) urban public transportation (such as tramway, trolleybus, and cableway systems) that use electric propulsion. The project will operate through the end of 2026, with a total expenditure of €180 million (USD 19.75 Million) (CZK 4.500 million). The measure's goal is to encourage (i) electric traction as a cleaner means of transportation than diesel-powered cars, and (ii) the movement of freight and passenger transport from roads to rail and urban transportation.
