State of the road and air transport market

Changing markets

The transport sector between 2018 and 2019

During these two years, the transport sector has become tense in the face of a shortage of drivers and the strong growth of e-commerce activities, a tension gradually channelled through the rationalisation of their transport organisations.  

The COVID-19 crisis, a difficult period for transport operators

In 2020, the COVID-19 crisis makes the situation more difficult for carriers who are directly  suffering from the effects of the health crisis :

• The batch and full truckload market becomes over-capacitated to meet demand. While this situation is temporary, it is nevertheless likely to last for the next two years.
• On the other hand, the palletised messaging networks are under heavy pressure when the containment is lifted, particularly for restocking operations in stores coming out of confinement.
• Finally, the chartering activity is experiencing varying fortunes depending on the sector. With its V-FRET offer, Viaposte has also carried out several large-scale operations to transport medical products related to the crisis. 

Significant differences between transport activities

Faced with these differences in markets, many carriers risk encountering major difficulties in maintaining their economic equilibrium despite the government measures put in place to help them get through the confinement period. According to Coface*, transport is going be the sector most affected by the post-pandemic crisis after tourism and events.
The only good news is the collapse of oil prices since March. It will reduce the cost of transport by 3 to 5% and somewhat offset the additional costs generated by the crisis. Nevertheless, it seems likely that prices will gradually return to their initial levels by 2021.

Viaposte takes measures in favour of its partner carriers

This very particular period accentuated the difficulties already present with some carriers and Viaposte adapted to allow them to get through the period: 

• Suspension of penalties
• Special attention to payment deadlines with express contingency plans
• Postponement of contract starts from April/May to June/July if necessary, time to recruit drivers
•  Compensation for some suspended lines where possible

Measures partially maintained to date to take into account the impact that may still be felt

"On air transport, the closure of passenger lines (on which almost 80% of the world's air freight is loaded) has made it technically impossible to transport mail and parcel flows from La Poste to the French overseas departments and territories.  We have therefore been forced to charter flights. A major challenge that required several weeks of adjustment to be optimised!”

On our customers’ side: " During the first month of the crisis, the V-REGULAR services  that we provide for La Poste were slowed down considerably to adapt to their pace of activity: we reduced the connections to 3 days a week, then to 4 days in May and 5 days in June; to now return to an almost normal pace. During April, the connections gradually resumed, particularly in the retail sector, to replenish the stores in stock and to take back unused stocks.”

"If the current situation is rather favourable to shippers, we need to adapt our position by projecting ourselves over the medium / long term. By its very nature, Viaposte will always need competitive, high-quality partner carriers. It is therefore necessary to adapt accordingly and anticipate the possible disappearance of certain players by putting even more energy into our sourcing operations".
 

* French foreign trade insurance company

Also visit our social networks