Serbia, Poland, Romania, Bulgaria – Less work, low freight rates: same concerns across Europe
How would you describe the year 2023, both in a professional and personal sense? At the end of each year, it is important to pause and make a quick recap. Although the common denominator for the past 12 months across Europe for the road transport sector is mostly the same, each market has its characteristics. That is why the experiences of our interlocutors from different countries are valuable.
In an interview with PlutonLogistic, managers of the invoitix company in Serbia, Poland, Romania, and Bulgaria gave their overview of local and European conditions in road freight transport in 2023, as well as predictions for the upcoming year. They also shared information about what marked the operation of invoitix in the market they manage, and last but not least, details about what this year brought for them personally.
In just six years of doing business, the Swiss company invoitix has positioned itself as the European leader in the field of digital invoicing in the road transport industry.
Nikola Todorović: The Serbian market is very specific
– Serbia is a specific transport market since all transport needs in big production companies are surrendered to a very few forwarding companies which later on organize smaller truck companies with one or two vehicles to execute the transport. Taking into account that information, transport offers are eventual and the price is highly controlled. In Serbia, there is a Factoring Law established in 2018 that helps a lot in the education of the market.
– Invoitix office in Belgrade in 2023 had changed the organizational structure from representative office to Ltd due to the beginning of domestic factoring in Serbia. We have attended two very important events where we spread awareness about factoring in transport. On the other hand, all influences from Europe like the recession of the German economy, the war in Ukraine, and the price of fuel shaped a lot of the offer and demand of transport. Focus in 2024 will be on expanding domestic business, education of the market, and establishing new partnerships in order to offer something new for clients that have signed a contract with us for international factoring.
– For me, 2023 was the year of stabilization after 2022 which was quite a bubble year due to many reasons.
Marek Kuska: Tough year for the transport sector in Poland
– At the beginning of 2023, the decline in loads on the market and freight rates continued. It concerned not only routes within Europe, but also the Polish market and key routes to and from Poland to the west. Low amount of loads and unattractive freight rates pushed many carriers out of the market. Unfortunately, the rest of the year was not any better. The improved situation in the transport market in the second quarter and at the end of the third quarter were not the long-awaited changes in the market trend but had a very short-lived effect. Fluctuations in fuel prices throughout the year did not help carriers either. Increasing toll rates in the key market in Germany at the turn of 2024 is another negative factor and it is unclear whether freight rates will increase accordingly.
The above looks like focusing on only negative factors, but unfortunately this was 2023 for the Polish transport sector, described as one of the least favorable years in over 10 years.
– Invoitix took advantage of the opportunity resulting from consistently building its presence in the Polish market. There was an increase in the number of clients and the number and volume of financed invoices. The expansion of operations in Poland from offering financing only for international invoices to financing domestic invoices in EUR and PLN at the turn of 2023 was a bull’s-eye and a functionality that Polish customers highly value and willingly use. The universality of invoitix solutions and the intuitiveness of the invoitix application is highly appreciated by Polish carriers. We are very pleased that in these difficult times, carriers positively evaluate the quality of cooperation with invoitix.
– For me personally, 2023 was a year of a number of challenges resulting from the high volatility of the economic environment. On the other hand, it was also a time of great satisfaction with the results achieved by the Polish team and the awareness that the work done in 2023 will be a springboard to even better results in 2024. Please keep your fingers crossed for the Polish team that we stay united, and dedicated so that we can focus on what we do best – achieving a very friendly atmosphere and that as in the previous year, “1+1” would equal “3”.
Iulian Florentiu Pene: Local and international companies vying for market share in Romania
The transportation industry in Romania has been continuously evolving, characterized by several noteworthy aspects: technological advancements, focus on sustainability, infrastructure development, and market competitiveness. The transportation sector in Romania remained competitive, with a mix of local and international companies vying for market share. This competitive landscape fosters innovation and a drive toward offering better services. Despite progress, challenges persisted in 2023. These may include issues related to regulatory compliance, infrastructure limitations in certain regions, and adapting to fluctuating market demands, with a decline in loads on the market and lower freight rates, which actually started in late 2022 and continued across the entire 2023.
All these influenced the operations of many carriers and made part of them go out of the market, or try to switch their business to other industries. Now, end of 2023, there are some encouraging indicators that can make all of us in the industry believe and look forward to a better 2024, it will not be a very high jump, but at least there will be more positiveness in the market.
– In 2023, invoitix expanded our operations across Romania with local businesses – financing domestic invoices in RON and EUR. We continued to increase our client database and consequently, we increased our volume, despite the hard situation in such a volatile and unstable market. We started to be even more visible in the market, being part of the biggest logistic event here – TransLogistica. For 2024, our focus will be on expanding domestic business, education of market, and establishing new partnerships with key clients, in order to establish a reputation of responsiveness and reliability to them.
– Professionally, was a very challenging year, with us still building up the team, establishing different local specific operations, getting the regulation from NBR, and, most importantly, developing the business in a market totally changed versus years back, with high uncertainty and an unfriendly economic environment. But, at the same time, I am very proud of what we as a team, here, achieved, in such an unstable environment, and we are looking forward to a better result in 2024. On a personal level, I can say that I am even more mature and stronger.
Alexander Velchev: Bulgaria market ready for recovery
– Instead of dwelling on the challenges of 2023, let’s focus on my expectations for an improved 2024. There are indications that the market is ready for recovery and that the European economy is set to improve. If these trends hold true, I anticipate a positive year for invoitix business in Bulgaria. Furthermore, as a company, we have gained valuable experience. Another year of learning and acquiring the right know-how positions us well for the promising year ahead.
– In 2023, we introduced a new service catering to the Bulgarian market—financing domestic traffic. The market’s response to this offering has been favorable, and we are observing promising results. The continuous month-to-month growth is particularly encouraging, with December registering the highest figures since the service’s inception.
– In a professional context, it has been a challenging year, as I believe it has been for everyone in our industry. On a personal level, this year has underscored for me the importance of family strength— the necessity for a family to remain united during difficult times.
