The ills of transport companies
The coming months may be difficult for international road transport. The statistics are alarming: since November 2016 we have been observing an increased number of transport companies suffering from late payments. The problem mainly concerns the companies with between 1 and 6 transportation sets. We also observe considerable delays in paying the liabilities. Transport companies find it more and more difficult to pay their liabilities, however, they still struggle to carry on their operation and maintain on the market. They simply want to survive, despite the unfavourable times.
Rzeczpospolita – hard data
According to the sources quoted in Rzeczpospolita daily, Polish transport market consists of 33 thousand companies, which gives 200 thousand vehicles. It is the most active logistic sector in Europe[1], ensuring over 100 thousand jobs. This sector is dominated by small and medium size enterprises with a limited ability to shape their competitiveness, which affects the profitability of their operations. Moreover, those companies seldom make use of a detailed verification of potential clients. The lack of information exposes them to the risk of starting cooperation with unreliable Contractors, and in the future, may cause serious problems with recovering receivables and result in payment clogs.
A competitive Polish freight forwarder and the policy of Western European countries
It must be noted that the present situation in the forwarding business is influenced by unfavourable decisions of Western European countries, mainly Germany and France. This pertains in particular to social benefits for the workers, such as the introduction of a minimum wage. The present laws and regulations oblige Polish drivers to be able to document their remuneration during a control. Such procedure is to confirm that the remuneration is not lower than the minimum wage in the country in which the transportation service is performed. Administrative requirements, including the need to keep full documentation in the local language, causes considerable difficulties in the execution of services in the territory of Western Europe and EU. Western European countries apply such solutions because they want to protect the internal transportation market and reinforce their competitiveness towards the solid and competitive Polish freight forwarders. The Ministry of Infrastructure has taken the first steps to prevent such solutions, at the same time claiming that
„we should not allow the decisions of countries like Germany of France to weaken the Polish sector of road transport(…)”.
Unfortunately, we will have to wait for the effects of actions taken by the Ministry of Infrastructure. At the moment, we are discerning certain shrinking of the international transport market. In the opinion of experts, the companies which apply cautious approach to the present situation, have earned assets, have regular contracts, control their clients and their receivables, shall survive.
Monika Giec
Debt Collection and Audit Director
Dogmat Systemy S.A.
[1] source https://www.rp.pl/Transport-drogowy/302149920-Polska-buduje-sojusz-w-obronie-transportu.html#ap-1