* Russia - Shippers face less trucking options as industry consolidates
--- Trucking firms in Russia are consolidating and expanding their services in a bid to survive the country’s stagnant economy and remain competitive with containerized rail transportation... Consolidation is most directly impacting small- and medium-sized Russian trucking companies with fleets of up to 50 trucks that make up nearly 90 percent of Russia’s trucking capacity. Large trucking operations with 100 tractors or more make up 10 percent of the market... As the deteriorating market hit shippers, they sought to cut costs wherever possible, putting strain on Russian truckers and transportation firms, according to an official spokesperson of Russia’s Minister of Transport Maxim Sokolov. In addition to smaller companies, consolidation is also disproportionately impacting niche carriers, the ministry said... Several trucking companies that specialize in containerized cargo have had to declare bankruptcy since the beginning of the year. Among them are Gruzovozoff, Avtotrading and Michailovskaya Transport Company, which which have 15 trucks to 17 trucks in their fleet and a similar number of drivers... The current financial uncertainty in Russia and poor business climate were the major reasons for Michailovskaya Transport Company’s bankruptcy, according to to Leonid Rodimov, the company’s general director. The company is considering several options to remain operational, including some type of merger, Rodimov said... Representatives of the other companies that are currently the subject of bankruptcy proceedings declined to comment, however, it is possible they may be sold to unnamed, larger competitors, according to some sources close to the companies... Among the largest players in Russia’s trucking industry are Delovy Lines, Garant-Container and SoyzHimTransAvto... The biggest merger to take place recently was sealed at the end of 2015 when the large Russian trucking company BigAvtoTrans acquired competitor Abi Product for an undisclosed sum, expanding BigAvtoTrans’ fleet by 80 trucks... In addition to competing on costs, Russian trucking companies are now expanding their value-added services, introducing door-to-door delivery and allowing for deferred payments. Many carriers have also revised their pricing policies with the aim of making them more flexible... The leading Russian trucking companies Ratek, Energia and Lorri are some of those that have taken this approach... Shippers operating in the Russian market have a growing appetite for comprehensive logistics services and demand is also growing for expedited delivery and warehousing services, according to the Ministry of Transport...
Moscow, Russia - JOC, by Eugene Gerden - Jun 20, 2016Labels: trucking industry news Russia, trucking markets
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