Market Trends of italy freight and logistics Industry
Mobility and logistics investments soar to USD 298.25 billion for an integrated national transport system
- In 2022, the conflict in Ukraine led to a significant drop in freight train traffic between China and Europe, with Italy experiencing a particularly dramatic collapse in transport volume, down by 91.62% compared to 2021, despite the introduction of the new Wuhan-Milan route. On the other hand, Hungary was a notable exception, as it saw a substantial 1,266% increase in cargo volume despite being a secondary player in this transport route. The decline in transportation demand is the main cause of the progressive decline in maritime freight rates for container shipments.
- In 2022, the Document of Economy and Finance's (DEF's) Infrastructure, Mobility, and Logistics Annex presented a comprehensive framework outlining plans, reforms, and investments charted and scheduled for the upcoming decade. It allocated nearly EUR 300 billion (USD 320.24 billion) to selected initiatives aligned with strategic plans considering the government's economic strategy and the Sustainable Development Goals.
- The mobility and logistics infrastructure projects listed in the Document of Economy and Finance (DEF) in 2022 were valued at a total of EUR 279.4 billion (USD 298.25 billion), showcasing an increase of 8.1%. This funding was targeted for the Integrated National Transport System's completion and safety, as well as in light of the climate crisis and technological advancement. These expenditures included USD 94.55 billion for roads and highways, USD 166.91 billion for railways and urban nodes, USD 11.43 billion for ports, USD 3.62 billion for airports, USD 36.91 billion for rapid mass transit in major cities, and USD 11.43 billion for cycle paths.
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Fuel prices surged in Italy after the discount on fuel-related excise duties expired at the end of 2022
- Gasoline prices in Italy were at 2.2 USD/Liter in September 2023. Fuel prices in Italy have continued to rise, with petrol and diesel breaking the record. Diesel reached USD 1.804/liter in 2022, up from USD 1.69 in 2021. The average price charged on petrol in self-service mode was EUR 1.862/liter (USD 1.98/liter), with the various brands ranging between EUR 1.855 (USD 1.97 /liter) and EUR 1.874/liter (1.99 USD/liter), and the restoration of excise duties was in effect until March 21, 2022 (+30.5 cents/liter on petrol and diesel and +10.4 cents/liter on LPG). The price of oil has increased to more than USD 100 per barrel. Prices surged mainly due to the speculations deriving from international tensions and after the Russian invasion of Ukraine.
- In the first half of 2021, the price of gas rose sharply. This phenomenon affected many countries where the energy demand increased dramatically due to the global energy crisis and the fast post-lockdown economic recovery. The average Italian household's gas supply price increased by 64.8% in 2022 compared to the previous year due to the impact of the Ukraine conflict on family finances.
- Higher fuel prices were a key driver that led to inflation in Italy. Inflation levels in the European Union and Italy peaked in late 2022 and have gradually decreased, but energy prices are rising again. In the initial days of 2023, national prices for full-service petrol stood at EUR 1.95 (USD 2.08) per liter and EUR 2.02 (USD 2.15) for diesel. The increase was largely due to the expiration of the discount on fuel excise tax, which was put in place in March 2022 to help combat a surge in fuel prices. The discount initially expired on December 1, 2022, but was extended at a lower rate till the end of 2022, when it expired.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Italy's population experienced a decline of 0.53% CAGR during 2017-2022 due to the aging and steadily falling birth rate
- The construction and retail and wholesale trade sector recorded decent growth during 2017-2022
- The Italian e-commerce market declined by 8.6% YoY in 2022, with all subsegments experiencing a downturn
- Italian food and beverage exports surged in Q1 2023, led by 3.9% growth in wine exports
- Fuel prices, along with rising driver wages due to shortage of truck drivers, are impacting the trucking operational cost in Italy
- Italy secures 19th ranking in 2023 LPI due to strong trade infrastructure and competence in logistics services
- The Italian government is expected to shift its focus toward rail freight by investing more than USD 117 billion over the next 10 years
- The government has approved investment plans worth USD 5.8 billion for port infrastructural development by 2026, which is expected to boost port connectivity in the region
- The transportation costs of goods exported from and imported to Italy rose by 3.5% YoY and 5% YoY, respectively, in 2022
- Italy invested USD 48.46 billion in 2021 for the modernization, upgradation, and expansion of infrastructure
- Italy is expected to boost domestic chip manufacturing with investments of over USD 4 billion by 2030
- Italy had the third-highest inflation rate in EU in 2022 due to an increase in energy and electricity prices
- Italian manufacturing sector fell slightly by 0.16% YoY in 2022 due to the Ukraine conflict and the drop in global demand
- Italy aims to phase out Russian LNG imports amid deals with African countries
- Due to supply chain challenges, a decline was witnessed in new registrations of lightweight vehicles in Italy
- In 2022, approximately 189,690 commercial vehicles were sold in France, with diesel trucks dominating the market
- Exports and imports by Italian companies via ships alone accounted for 40% of their total production in 2022
- Despite economic disruptions, port calls in Italy witnessed a YoY growth of 3.08% in 2022
- Italy is planning to invest USD 8.9 billion until 2026 to modernize its ports
