DSV Solutions: The Romanian transport and logistics industry is growing at the fastest pace after the pandemic, despite inflation and the geopolitical context
The transport and logistics industry is on an upward trend in Romania, amid the explosion of demand in eCommerce, despite inflation and the geopolitical context, according to DSV Solutions, the third largest global provider of transport and logistics services.
After two years of slow growth, during the pandemic, the local transport and logistics market registers in 2022 an accelerated growth of demand both for services on all types of transport (road, sea, air and rail) and for storage services in logistics centers.
“After the pandemic declines, the transport and logistics market is recovering at the fastest pace and growing at an accelerated pace, an increase that is supported by the spectacular evolution in eCommerce, but also in Automotive, and the elimination of restrictions, which boosted product sales in physical and online stores. In addition, an increasingly visible trend on the local market is the increased interest in green transport services, as part of the companies’ strategy to meet their own sustainability objectives”, says Sergiu Iordache, Managing Director at DSV Solutions.
At the same time, at business level, there was an increase in all ranges of transport and logistics services, the most requested being groupage transport services, in which that several companies can share the same means of transportation for transporting goods. High demand is also for warehousing services in logistics centers, and for fulfilment services, which represents the storage and delivery of products to end customers directly from DSV Solutions centers in Romania, but also for special warehousing services.
Thus, after increases in all ranges of services offered, DSV Solutions estimates an increase in turnover by 20% by the end of the year, compared to 2021, when it reached a turnover of 100 million euros.
To combat the effects of inflation and the geopolitical context, transport and logistics companies are adapting to new changes through solutions such as nearshoring, which involves outsourcing services or partially relocating to neighboring countries, but also friendshoring, which involves shifting production capacity to friendly countries. New transport routes and multimodal or intermodal solutions, such as container or road-train trailer, have also emerged.
In addition to new changes in transportation, an important market trend is the continuous adaptation to customer requirements, which involves investments in the automation of business operations, an essential need for all operators as the market continues to develop.
“We have invested constantly for years in automation that optimizes logistics activities, being prepared from all points of view to efficiently manage even larger volumes of goods. Inevitably, accelerated growth in the industry will lead to investment in technology for automation, advanced mechanization or robotization of logistics work processes to increase efficiency in the management and distribution of goods. Without automation, transport and logistics operators will not be able to remain competitive, because customer expectations will not be met properly. Therefore, an increasingly visible trend on the market is the automation of logistics processes, along with the orientation towards sustainability and solutions to reduce the amount of carbon emissions”, adds Sergiu Iordache, Managing Director at DSV Solutions.
About DSV Solutions
With activity in 13 cities and 120,000 sq m of class A logistics centers in Romania, DSV Solutions, which is part of the Danish group DSV Global Transport & Logistics, has an expertise of over 28 years in the transport and logistics industry, contributing year by year to strengthen the local market at regional level. Through its business divisions, the company offers a complete rang of transport and logistics services, on all types of transport (road, air, sea and rail), transport services (groupage, delivery), multimodal services, and warehousing and fulfillment services for many industries, such as retail, pharma, automotive and others. DSV Solutions constantly invests in automating business operations to streamline the management and distribution of goods, and in digitizing collaboration with customers, offering the possibility of booking and tracking products in real time through the myDSV application. It also created the GREEN TRANSPORT division for green transport services and sustainability services that reduce carbon emissions to protect the environment. In 2021, the company DSV Solutions recorded a turnover of 100 million euros, increasing by 25% compared to the previous year.