Market Trends of netherlands freight and logistics Industry
The Dutch government's USD 8 billion transportation investment plan focus on public transit and road infrastructure
- The transportation and storage sectors in the Netherlands saw a substantial increase, rising from a 13% YoY growth in 2021 to 22% in 2022 due to a rise in sea trade freight volume. In the third quarter of 2022, the transportation sector's GDP in the Netherlands surged to EUR 8.74 billion (USD 9.32 billion), a significant rise from EUR 884 million (USD 943.66 million) recorded in the second quarter. The Netherlands, known for its strong export activities, plays a crucial role in shipping substantial freight volumes through its road and rail networks.
- In the fourth quarter of 2021, the transport sector witnessed substantial growth, with a remarkable 24% increase in turnover compared to the same period in the previous year. This surge in turnover was evident across all market segments, except for postal and courier services. Notably, water transport experienced a remarkable upswing, with a growth rate of over 30% compared to the previous year. This increase was particularly notable in both seagoing and inland shipping, primarily driven by the impact of rising prices in the sector.
- The Dutch government has outlined an ambitious plan to enhance transportation systems with a substantial investment of EUR 7.5 billion (USD 8.00 billion) over the next decade until 2030. The national government is slated to allocate EUR 4 billion (USD 4.26 billion) toward advancing public transportation endeavors. This encompasses extending Amsterdam's North-South Metro Line to Schiphol alongside a significant commitment of EUR 2.7 billion (USD 2.88 billion) for road enhancements. Additionally, an investment of EUR 780 million (USD 832.64 million) is earmarked for infrastructure upgrades to augment the network of bike lanes across the country.
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Discount on fuel duty was introduced in 2022 after fuel prices surged in response to a spike in oil and gas prices globally
- In January 2023, petrol prices surged by around 14 cents (USD 0.14) a liter when the discount on fuel duty introduced in 2022 ended. Moreover, in 2022, the petrol price rose above USD 1.8 per liter due to the war in Ukraine and the economic recovery after the coronavirus crisis a barrel of crude oil costs around USD 100. The crude oil price and refining costs account for roughly 30% of the pay at the pump. The fuel price in the Netherlands is in despair as petrol prices continue to rise across the country, including the cost incurred by oil companies, gas stations, and shops. The tax relief, worth 13.8 cents (USD 0.138) for a liter of petrol and 10 cents (USD 0.10) for diesel, was introduced in 2022 after prices surged to around 2.45 cents (USD 0.0245) and 2.14 cents (USD 0.0214), respectively, in response to a spike in oil and gas prices on global markets.
- The average price in December 2021 was more than USD 2.10 per liter. At the beginning of 2021, this was still about USD 1.8. The highest level was reached in November when the liter price peaked at a record USD 2.2. The prices of LPG and diesel also went to unprecedented levels in 2021. The demand for fuel prices increased after the global economy recovered from the coronavirus crisis.
- The petrol price in the Netherlands is more expensive than in almost all other countries due to excise duties. It is, therefore, a huge source of income for the state. The Netherlands has eight million motorists and around USD 4.7 billion in fuel excise and VAT annually. Prices have been steadily falling across Europe since the beginning of 2022, attributed to falling oil prices and the weakening global economy. The petrol prices continue to fall at a rapid pace.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The Dutch population is expected to decline till 2040 by 16%; urbanization and ageing trends
- Growing construction and manufacturing industry driving economic development, supported by public and private investments
- The Dutch online retail industry is dominated by domestic companies such as Bol.com and Coolblue
- The Netherlands introduced export control measures in 2023 for advanced semiconductor production equipment
- Fuel prices have risen due to rising excise duty since July 2023, and driver shortages are expected to increase operational cost
- Netherlands climbs to the 3rd rank in LPI 2023 due to rise in infrastructure investment to USD 26.68 billion by 2028
- Expansion of rail freight infrastructure, coupled with growing investments in road projects driving growth
- The Netherlands is enhancing maritime connectivity with the United Kingdom, Belgium, and Germany
- Freight rates are impacted by decreased demand, inflation, and reduced economic activity in the country
- Netherlands allocated USD 26.68 billion for infrastructure development by 2028 to optimize transport efficiency
- EU approved state aid for Dutch micro and nanoelectronics manufacturing projects in 2023, under IPCEI
- Significant increases in crude oil prices due to the Russia-Ukraine War led to major producer and consumer price increase
- The manufacturing industry contributed significantly to the national GDP and grew by 13% YoY in 2022
- The Netherlands anticipates its LNG import capacity to increase to 25% by 2026 while cutting down Russian fuel imports
- Commercial vehicle registrations are increasing despite rising government focus on electric vehicle adoption
- Around 12,000 zero-emission trucks anticipated to be on the road by 2030 as per the Zero Emission City Logistics Green Deal
- Port of Rotterdam's cargo throughput hardly declined in 2022 despite Russia-Ukraine War and economic problems
- Port calls in the Netherlands witnessed a decline of 3.27%, down from 2021, owing to backlogs and congestion at the Port of Rotterdam
- Coal and container freight drove rail freight volume in 2022, whereas air freight volume declined in Q1 2023
