The effect of inflation – 40% higher demand for groupage transport

In the context of heightened inflation, demand for groupage transport has increased by 40% this year, being a less expensive freight transport solution compared to other types of transport. Thus, Romanian companies reduce the costs of transport services and stock storage by up to 80%, according to an analysis by DSV Road, a global transport company.

Groupage transport is a type of freight forwarding service that consists in the loading of a single truck with the goods of several companies, for different consignees. Companies that do not have enough cargo to rent the entire space in a truck prefer the groupage solution, through which they can transport from a single parcel up to three pallets of products, i.e., between 10 kg and 2,500 kg. Thus, DSV line trucks take over the entire load, each shipment being integrated into the pan-European distribution network of the company, which has more than 300 terminals and offices. With daily departures from more than 30 countries, clients benefit from both flexibility in choosing pickup and delivery dates and fixed transit time, as well as full predictability and traceability.

“The high level of inflation generated an avalanche of costs on the local market and beyond, which led Romanian companies to look for the most effective solutions to reduce business expenses. Thus, the interest in groupage transport has grown exponentially in 2022, considering the multitude of advantages offered, among them, optimization of transport costs, well-established transit times, daily pickups, reduction of storage space expenses, smaller stocks or even non-existent and reducing the CO₂ footprint, a solution increasingly sought by companies”, explains Sergiu Iordache, Managing Director of DSV Road.

Companies can streamline operations with the help of group transport, being preferred by all types of companies, small, medium, and corporate, regardless of the size of the business, from all fields – retail, e-commerce, IT&C, automotive, pharma and others. Several types of cargo are transported through DSV Road’s group network, from general goods, electronics and home appliances, auto parts, chemicals, ADR dangerous goods, clothing, as well as food and other perishable goods.

At the same time, the demand for groupage transport has increased this year because more and more companies, especially e-commerce ones, do not wat to have stocks anymore and, implicitly, storage spaces, preferring to sell through the dropshipping system.

“Although groupage transport is still mainly used for the import of goods, in recent years the demand for this type of transport and for export is gradually increasing, especially in the automotive and retail industries, but also in other areas. We expect an accelerated increase in interest for the groupage service soon, especially from Romania to other countries, and there will be a spectacular evolution in the development of this type of transport”, adds Sergiu Iordache, Managing Director of DSV Road.

In this context, groupage transport services represent approximately 60% of DSV Road’s business in Romania, followed by intermodal transport.

For 2023, the company estimates an increase in demand for groupage services of at least 20%.

In 2022, given the growing demand for multiple transport services, DSV Road expects a 40% increase in business compared to last year, estimating a turnover of 70 million euros.

“With our extensive and systematized pan-European network, complemented by our qualified staff, clients benefit, regardless of volumes, from a strong European coverage and valuable knowledge of the local market, from a fast, reliable and efficient groupage service“, conveys Sergiu Iordache, Managing Director of DSV Road.