The road transport sector is facing an unprecedented wave of business failures, linked to the slowdown in the economy, warned the Union of French Transport and Logistics Companies (Union TLF) on Friday. The Union is “sounding the alarm” because “the cash flow of carriers has become strained and insolvencies in the sector are now historically high.”
In total, 603 freight transport companies were the subject of collective proceedings in the second quarter of 2024, an increase of 45% in one year and 73% in two years, according to the company Ellisphere and the magazine L’ Carrier Official. This wave “far exceeds the post-Covid recovery”, analyses the union TLF.
Due to a lack of demand, the business climate in the road transport sector has been below its long-term average for 21 consecutive months, the Union explains.
Gap between political debate and reality
At the same time, hauliers’ production costs continue to rise sharply: +5.4% year-on-year in July 2024, excluding diesel, according to the National Road Committee.
“We are shocked by the gap between the political debate on the return to school and the reality of our companies,” said Eric Hémar, president of the giant ID Logistics and the TLF union, quoted in the statement.
“An economic crisis has been hitting our sector head-on for over a year. This situation is putting many companies, especially the smaller ones, at risk, and with it, the employment and vitality of our territories require a start that gives priority to defending the competitiveness of our companies and full employment,” Hémar stressed.
The TLF union is calling for the draft finance bill to include a reduction in taxes for transport companies, the elimination of the unemployment insurance bonus and the maintenance of public support for the greening of truck fleets.
Source: BFM TV
