Business Ascender

The TSL industry in Poland is in an unprecedented crisis – the sector’s debt has already reached PLN 1.15 billion, recording a 34% increase compared to last year. The situation is becoming increasingly tense when we consider that as many as 60% of Polish carriers are signaling their intention to reduce their fleet and employment.

The current situation in the logistics industry is all the more worrying because 28.6% of companies have noticed a clear deterioration in their financial situation. First of all, rising operating costs, which according to forecasts may increase by up to 5% in 2024, are forcing companies to make radical decisions. In addition, the prospect of introducing Euro 7 emission standards in 2025 and the problem of the lack of drivers, affecting 70% of transport companies in Europe, pose further serious challenges to the TSL industry.

Research Reveals the Scale of the Crisis in TSL

The latest research conducted by Transcash.eu reveals the dramatic situation in the TSL sector. Almost 40% of surveyed companies declared a deterioration in their financial situation, with this percentage exceeding 50% among freight forwarders [1].

Furthermore, the total debt of the TSL industry reached a record level of PLN 3.3 billion [2]. Over the past two years, the amount of unpaid benefits increased by over PLN 730 million, of which PLN 440 million was incurred in the last 12 months [2].

40% of Companies Record Losses

According to the data, most companies recording losses indicate two main factors: an increase in wage costs (67%) and delays in payments (61%) [1]. Particularly worrying is the fact that currently 9% of all companies in the sector are struggling with serious financial problems [2].

However, the most alarming is the increase in the number of unreliable entities – over the past year their number increased by 5,229, reaching 39,420 companies [2]. The average amount of outstanding liabilities per company is already approaching PLN 85,000, which is an increase of over PLN 10,000 compared to the previous year [2].

Every Fifth Company Considers Suspending Operations

In the first quarter of 2024, 120 carriers declared bankruptcy, while over 1.4 thousand transport companies are currently in the process of restructuring [3]. The situation is particularly dramatic in the road freight transport segment, where in 2023 restructuring proceedings began in 423 companies, which constitutes 82.9% of all restructuring in transport [3].

Currently, carriers are struggling with extended payment terms:

45% of companies issue invoices with a 60-day payment term

28% use a 45-day term

15% offer a 30-day repayment period [1]

However, the most worrying thing is that 8% of entrepreneurs wait for payments for more than 90 days from the invoice issue date [1]. In the face of these challenges, half of the surveyed companies use external financing in their daily operations, with this percentage reaching as much as 70% among carriers [1].

Carriers Fight for Survival on the Market

In the face of growing financial problems, Polish carriers are taking radical action in the fight for survival on the market. According to the latest data, approximately 60% of entrepreneurs from the TSL industry indicate their intention to reduce their fleet and employment in the coming months [4].

Fleet Reduction as a Last Resort

Transport entrepreneurs face a difficult choice – as many as 40% of companies have decided to extend the service life of their vehicles [5]. In addition, 16% of carriers prefer to invest in servicing their current fleet rather than buying new vehicles [5]. As a result, transport companies are focusing on maintaining the technical efficiency of their rolling stock.

However, the situation is becoming increasingly tense – 13% of carriers are on the verge of insolvency and do not settle current liabilities [4]. In the first quarter of 2024, the tonnage of road transport decreased by 1.7% compared to the same period of the previous year [5].

Fixed Cost Optimization

Entrepreneurs implement comprehensive strategies for optimizing operating costs. First of all, they focus on:

Reducing fuel consumption by monitoring drivers’ driving style and implementing eco-driving, which can bring savings of 30-40% [6]

Optimizing routes and eliminating empty runs, which generate significant operating costs [6]

Regular technical inspections and proper selection of tires, which reduce fuel consumption by about 2 liters per 100 km [6]

Therefore, companies invest in telematics systems that enable ongoing monitoring of the fleet and drivers’ driving style [6]. Proper management of tire pressure can bring additional savings – even 0.3 liters of fuel per 100 km [6].

In turn, carriers increasingly use advanced GPS systems and route planning software, which allow for the selection of the shortest and most efficient routes [7]. Regular driver training in eco-driving principles is also becoming a standard in the industry, bringing tangible financial benefits [7].

Banks Tighten Credit Policy towards TSL

The financial situation of the TSL sector has significantly affected the credit policy of banks, which in the second quarter of 2024 tightened the criteria for granting loans to small and medium-sized enterprises [8].

More Difficult Access to Financing

Banks justify the tightening of credit policy primarily with the increase in industry risk and the deterioration of the quality of the credit portfolio [8]. As a result, as many as 13% of transport companies were classified as entities with high transaction risk [9].

In addition, the banking sector has introduced additional restrictions in the procedure for granting loans, especially for small and medium-sized enterprises [10]. Currently, only 67% of transport companies are characterized by high payment credibility, while every fifth company has an average level of credibility [9].

Alternative Sources of Capital

In the face of difficulties with access to traditional bank financing, TSL companies are looking for alternative solutions. Some companies decide on:

Stock exchange debut – enabling the acquisition of capital without the need to take out bank loans [11]

Factoring – particularly popular among micro and small enterprises, allowing immediate access to funds from unpaid invoices [9]

Leasing – the most frequently chosen form of financing in the TSL industry [9]

However, entering the stock exchange, although it brings tangible benefits in the form of easier access to capital and increased creditworthiness, is also associated with additional burdens [11]. These include, among others, the costs of issuing shares, information obligations and the risk of share price fluctuations.

Therefore, entrepreneurs are increasingly using the services of business intelligence agencies, which help in verifying potential business partners [12]. The cost of a basic report starts from PLN 10, while a package of ten reports costs around PLN 200 plus VAT [12].

It is worth emphasizing that transport companies themselves are struggling with the problem of receivables – their clients owe them over PLN 381.2 million [13]. This is almost one third of the amount that the TSL sector must pay to its contractors. In order to minimize the risk, entrepreneurs have downloaded over 1.3 million business reports on potential clients over the last 5 years [9].

Freight Forwarders Transform Business Models

Freight forwarders in Poland are actively transforming their business models in response to dynamic market changes. According to research, over 80% of freight forwarding companies consider the introduction of innovative solutions to be a key element of their development strategy [14].

New Pricing Strategies

Freight forwarders implement flexible service pricing models based on two main approaches. First of all, they use a cost strategy, where the price of the service is calculated based on the actual costs of implementation plus a profit margin [15]. The second approach is a value strategy, in which the price reflects the value of the service perceived by the customer [15].

Therefore, forwarding companies increasingly use advanced analytical systems to optimize price lists. According to the latest data, the use of dynamic pricing allows for increasing operational efficiency by 15-20% [1].

Niche Market Specialization

Freight forwarders focus on identifying and developing specialized niche markets. In addition, companies conduct thorough market analysis, examining trends and identifying areas where there are gaps in service [2].

However, success in the niche segment requires:

Continuous monitoring of the behavior of various branches of the economy

Regular analysis of financial results

Customer satisfaction surveys

Increasing the timeliness of deliveries [2]

Development of Additional Services

Modern freight forwarding companies significantly expand the scope of their services. According to research, over 80% of respondents from the logistics industry describe their VAS (Value Added Services) offer as an “important” or “very important” element of the development strategy [16].

In response to growing customer requirements, freight forwarders offer comprehensive solutions, such as packaging of goods, co-packing, labeling and repacking [16]. First of all, companies are investing in the automation of warehouse processes, which results in a several-fold reduction in order fulfillment time [1].

In addition, freight forwarders are transforming into specialized logistics operators (3PL), offering a wide range of additional services [17]. As a result, in addition to traditional forwarding, they provide warehousing services, inventory management and various types of marketing and financial services related to the implementation of contracts [17].

The latest trend is the emergence of 4PL companies – virtual logistics operators who enter production processes and create added value for products during their journey in the logistics chain [17].

The German Market is Losing Importance for Polish TSL

The dependence of the Polish TSL sector on the German market is systematically decreasing. The share of the German market in the total number of refuelings fell from 32.6% in 2021 to less than 26% in 2024 [18]. In addition, the economic crisis in Germany, where GDP growth in Q3 was only 0.1%, has had a significant impact on the transport sector [19].

Carriers Are Looking for New Directions

In the face of the declining economic situation on the German market, Polish carriers are actively looking for alternative directions of development. However, it is worth noting that on the most important European routes, the shares of Polish companies have decreased. For example, in transport between France and Germany, Poland’s share has fallen from 33.8% to 28.8% [20].

On the key route between Germany and the Netherlands, Polish carriers have also recorded a decrease of 2 percentage points in each direction [20]. In this regard, transport companies are increasingly turning their attention to:

Hungary and Serbia as new target markets

Turkey as a strategic transit point

Southern European countries offering new development opportunities [19]

Southern Europe is gaining importance

The Iberian Peninsula is becoming an increasingly attractive destination for Polish transport companies. Spain, as the only country of the “old EU”, increased its share in European transport work by 2 percentage points [20].

Italy, known for its powerful industrial sector and luxury goods, offers significant development opportunities. Key ports such as Genoa and Naples play an important role in international trade [21]. On the other hand, Portugal, with its strategic location for maritime trade and developed ports in Lisbon and Porto, is becoming an important logistics hub [21].

As a result, Polish carriers are focusing on developing specialist services in the southern region, offering:

Transport of fresh products from Spain

Logistics services for the industrial sector in Italy

Transport of luxury goods on international routes [21]

Maciej Wroński, president of TLP, emphasizes that Polish transport companies are in the best position to increase their market share after the end of the recession [20]. First of all, Poland still has the strongest advantages in road transport among all EU countries, including better access to workers than Germany or France [20].

Warehouses Change Operational Strategies

Modern warehouses in the TSL industry are undergoing a fundamental operational transformation, responding to growing market requirements and cost pressures. According to the latest research, 82% of organizations consider partial automation to be standard in all types of warehouses [22].

Automation of Warehouse Processes

First of all, companies are investing in advanced automation systems. Autonomous warehouse robots equipped with navigation systems and sensors transport goods and avoid obstacles on their own [3]. As a result, 76% of e-commerce companies and 45% of companies with traditional sales channels have already implemented partial automation of their facilities [22].

In addition, artificial intelligence (AI) is playing an increasingly important role in warehouse management. AI systems analyze data on the movement of goods, forecast needs and optimize picking and sorting processes [3]. On the other hand, cobots (robots y cooperating) ensure safe cooperation with people during packaging, palletizing and assembly [3].

Therefore, companies implement advanced WMS (Warehouse Management System) systems that enable:

Monitoring and control of processes in real time

Optimization of warehouse space

Reduction of human errors [23]

Optimization of Storage Space

High prices of renting warehouse space force companies to use available space more efficiently. According to experts, the use of modern storage systems can increase the warehouse capacity by over 1,000 pallets [24].

First of all, companies invest in gravity racks, which use gravity to store loads. This system significantly speeds up the handling of goods and allows automatic movement of products from top to bottom [25].

On the other hand, pallet and container stackers, moving on rails between racks, speed up the loading and unloading process [26]. As a result, the time of warehouse operations is shortened by up to 24 hours a day, 7 days a week [26].

In the logistics industry, special attention is paid to the optimization of material flow. Automatic storage and retrieval systems (AS/RS) increase storage efficiency through automated movement of goods [23]. In addition, carousel storage systems enable dense storage of products while providing easy access [23].

Implementation of these solutions brings tangible benefits:

Increased efficiency of logistics operations

Maximum use of available space

Elimination of errors at the picking and issuing stages

Reduction of fixed costs [4]

TSL Companies Reduce Carbon Footprint

Polish TSL companies are intensifying their efforts to reduce their carbon footprint, responding to growing environmental requirements and seeking operational savings. According to the latest research, sustainable logistics brings tangible benefits both for the environment and for companies’ financial results [27].

Fleet Modernization Brings Savings

First of all, transport companies are focusing on modernizing their vehicle fleet. A refurbished trailer saves about 15.7 tons of CO2 emissions over its entire service life compared to the production of a new one [28]. In addition, the modernization of existing rolling stock brings significant financial benefits – companies can achieve savings of around 40% in fuel consumption by implementing eco-driving [29].

In connection with this, TSL companies invest in:

Electric vehicles for urban deliveries

Telematic systems monitoring fuel consumption

Modern tires reducing fuel consumption

Economic driving training

However, a drop in tire pressure by just 5% results in an increase in fuel consumption by several percent [29]. Therefore, companies implement tire condition monitoring systems, which translates into real savings in vehicle operation.

Green Technologies in Logistics

The TSL industry is actively implementing innovative technological solutions. According to data, 74% of European fleet companies have recently implemented new digital tools [29]. First of all, companies invest in advanced fleet management systems that enable route optimization and reduction of empty runs.

In the area of ​​storage, TSL companies focus on energy-saving technologies and renewable energy sources [30]. Sustainable storage focuses on:

Optimizing space utilization

Minimizing waste

Efficient resource management

Using renewable energy

In addition, logistics companies are introducing alternative distribution networks and ecological transport solutions [27]. Dynamic route allocation, supported by cloud systems, allows for the assessment of road conditions, parking and other potential delays [27].

As a result, TSL companies achieve significant improvements in operational efficiency. According to research, the use of green technologies can reduce emissions over the entire life cycle by up to 87% [5]. However, the implementation of electric vehicles in heavy transport still encounters some barriers, such as high purchase price, insufficient range and limited availability of charging infrastructure [5].

Biofuels, on the other hand, as a transitional solution, do not require a separate refueling infrastructure and can be used by existing combustion vehicles [5]. In the EU countries, biofuel production has increased by 28% since 2012, but their share in total transport remains relatively small [5].

Therefore, the TSL industry also focuses on optimizing logistics processes. Companies implement advanced algorithms and telematics systems that allow for optimal route planning and reduced fuel consumption [31]. Additionally, companies invest in employee training in the field of eco-driving and effective resource management [31].

Experts Point Out Paths to the Crisis

TSL industry experts point to the need for a comprehensive approach to exiting the crisis, combining immediate corrective actions with long-term development strategies. First of all, specialists emphasize the importance of education and financial support as key elements in the process of restructuring the sector [32].

Recommendations for Small Businesses

In the face of current challenges, experts recommend that small TSL companies implement several key solutions. However, the level of knowledge about sustainable development and the possibility of implementing appropriate solutions remains very low [7]. In this regard, experts recommend:

Participation in information campaigns and industry training

Using preferential loans for green investments

Implementation of ERP systems and tools for calculating emissions

Establishing cooperation with larger entities to exchange knowledge [32]

In addition, experts point to the urgent need to create contact points where entrepreneurs could obtain support in reporting and implementing new regulations [7]. In the event of financial difficulties, restructuring becomes a key rescue tool, offering:

Protection against bankruptcy and enforcement

Possibility of concluding an agreement with creditors

Partial cancellation of liabilities

Securing key contracts [33]

Long-term Development Strategies

Experts emphasize that a long-term approach to reporting and implementing ESG principles may become a key element of the success of Polish TSL companies [32]. Therefore, companies should focus on: Investments in modern technologies:

Fleet management systems based on artificial intelligence

Automation of warehouse processes

Ecological transport technologies [34]

Development of digital competences:

Training in new technologies

Implementation of telematics systems

Optimization of logistics processes [6]

Adaptation to environmental requirements:

Modernization of the transport fleet

Implementation of energy-saving solutions

Development of alternative energy sources [6]

However, according to experts, companies that invest in training and employee development will be able to better respond to the growing demand, especially in the context of digitization of logistics processes and automation [6].

In addition, specialists draw attention to the need to increase support in several key areas. According to research, preferential conditions in granting funds to companies implementing sustainable development policies could be an additional motivation for entrepreneurs [7].

In connection with this, experts recommend implementing a comprehensive support program, including:

Education and training:

Organization of information campaigns

Access to specialist training

Exchange of experiences between companies [7]

Financial support:

Preferential loans for investments

Grants for the implementation of sustainable solutions

Easier access to external financing [7]

Technological support:

Access to experts and tools

Assistance in reporting and reporting

Support in implementing new technologies [7]

However, experts emphasize that effective restructuring requires careful planning and a professional approach [33]. In connection with this, they recommend cooperation with restructuring advisors who help in carrying out the entire process and maximizing its effects [33].

In addition, specialists point to the need for a flexible approach to business. According to experts, companies should make decisions based on numbers that describe economic reality much better than personal beliefs or emotions [35].

In connection with this, experts recommend:

Continuous analysis and implementation of new mechanisms

Building long-term relationships with partners

Investing in the development of employee competences

Diversification of revenue sources [35]

However, according to specialists, 2024 may bring a slight improvement for the TSL sector, but companies must remain vigilant to dynamically changing market and geopolitical conditions [35]. In connection with this, the key will be:

Investing in sustainable development

Maintaining operational flexibility

Developing international cooperation

The right approach to business [35]

Conclusions

To sum up, the TSL industry in Poland is at a turning point, where traditional business models are no longer effective. First of all, the growing debt of the sector, tightening of banks’ credit policy and the declining importance of the German market are forcing companies to make radical changes.

However, transport companies are actively adapting to the new market reality. Fleet modernization, optimization of operating costs and implementation of green technologies are becoming key elements of the survival strategy. On the other hand, freight forwarders are transforming their business models, focusing on specialization in market niches and development of additional services.

Therefore, the future of the TSL sector depends on the ability to adapt to dynamically changing market conditions. Experts indicate that companies focusing on sustainable development, digitalization of processes and flexible business models have the best chance of emerging from the crisis. Using the support of industry experts and implementing long-term development strategies will also be crucial.