ING Research reports cost shock in transport sector

ING Research reports that the transport and logistics sector is facing a significant cost shock driven by geopolitical tensions and supply chain disruptions. Rising fuel prices alone are estimated to increase costs in road transport by approximately 6 percent.

In addition to fuel, companies are contending with higher wages, increased interest rates, longer port wait times, and logistical delays caused by bridge closures. While revenues have risen by about 10 percent due to higher tariffs, sector economist Rico Luman notes that these gains are largely offset by rising expenses, putting profit margins under pressure. This is particularly challenging in road transport, where passing costs on to customers is not always immediate or guaranteed.

Furthermore, a trade imbalance with China is creating inefficiencies. European exports to China fell by 11 percent in the first half of the year, leading to an accumulation of empty containers in European ports. This imbalance necessitates the movement of empty containers back to China, contributing to port congestion and operational inefficiency.