The problems that transporters are facing this year include the decline in several markets – important clients of transporters – such as the auto market, which has resulted in a decline in orders, delayed payments, and the extension of invoice payment deadlines to 90 days from 45, said officials of the association. The drop in road freight traffic could be one of the reasons for which oil companies are estimating a 15 percent drop in fuel demand on the local market in 2009.
“In 2009, road freight transport companies will face serious problems, such as a liquidity shortage. They will be subject to a liquidity crisis, which most companies will not overcome. Some 20 percent of the more than 25,000 players with valid licenses could file for bankruptcy,” said Constantin Isac, UNTRR’s Vice President and General Manager of Transchim, a road transporter specializing in special transports (dangerous commodities, chemical products, and fuel).
Isac added that, in order to avoid bankruptcy, a company should not spend more than its revenues in one month. “They will have to cut costs,” the company official added. The companies that will survive will “play” on a different market. “There will be a mix of strong companies and smaller ones, which will know how to adapt,” UNTRR’s Vice President said.
Radu Dinescu, UNTRR’s Secretary General, said that 75 percent of the commodities traded between Romania and other countries are transported by road. Officials of international freight transporters said that their activity plunged 70 percent year-on-year, and they are forced to lay off employees.
