The total worth of shipping services in the first quarter shrank by 22% compared to the same period last year. However, trucking companies, as the most flexible mode of transport, managed to adapt quickly, and as early as in March 2022, road haulage rebounded by 46% compared to February.
In the first quarter of 2022, freight shipping in Russia declined by 22% year on year. According to the Loginet platform, in the first quarter of this year, shipping tenders plummeted by 26%, and decentralized transportation contracts, by 18% compared to 1Q2021.
However, according to Loginet analysts, despite the unfolding geopolitical and economic crises, the truckload market is proving capable of adapting quickly. The recent redistribution of trade flows and logistics enabled a 46% growth of this market in March 2022 compared to February 2022. The improvement occurred because freight owners had been stockpiling goods during the period of sanctions. The shipping tenders held during that period showed the most significant growth – their total worth increased by 174%, as companies began casting about for new shipping contractors to direct their goods along newly emerging transport corridors.
Overall, the freight shipping market in the first quarter contracted by 52% compared to the same period in 2021, and by 15% compared to 4Q2021. In particular, the decline was caused by certain companies leaving the Russian market. That predictably disrupted the supply chains, which, in turn, made companies redirect their goods to other routes.
“We have noted the growing role of road haulage. This is the most flexible channel, which has fully demonstrated its advantages in a rapidly changing situation. Truck carriers easily explore new transport corridors at affordable fees,” Herman Raskin, founder of Loginet, commented.
The number of Loginet’s customers grew by 11% in 1Q2022 compared to 1Q2021. The number of freight owners grew by 11%, and the number of carriers, by 18%.