Market Trends of nordics road freight transport Industry
Sweden dominates the GDP of the Nordic transport sector, fueled by modern logistics infrastructure
- The Nordic transportation and storage sector saw a substantial YoY increase, rising from 11.57% to 19.71%, due to Nordic countries' strong rankings in the Logistic Performance Index and their excellent trade infrastructure. Among these nations, Sweden stands out as the primary contributor to the sector's GDP. Sweden's robust high-income economy has fostered a modern and technologically advanced transportation industry, with Gothenburg emerging as a prominent logistics hub, supported by the Port of Gothenburg and new logistics facilities. The Port of Gothenburg, Sweden's largest, has consistently gained a larger market share, growing from 48% to 51% in 2021 and handling 828,000 TEUs.
- The growth of cold storage is driven by expanding global and European trade, as companies increasingly turn to cold storage warehouses to prolong the shelf life of their products. Sweden's logistics market is the largest in the Scandinavian region, with substantial infrastructure investments, making it a top logistics market in Europe. However, in the second quarter of 2023, Sweden's transportation sector GDP declined to SEK 41,510 million (USD 3,793.47 million), down from SEK 45,794 million (USD 4,184.97 million) in the first quarter of the same year.
- The Danish government has unveiled Denmark Forward, a new plan to invest DKK 160 billion (USD 22.96 billion) in infrastructure through 2035. The plan will improve the national road and railway systems, benefiting people and businesses. In recent years, Norway's public investment in transportation has significantly increased, which could have significant economic benefits, especially since good transportation infrastructure can aid in Norway's transition away from oil-related activities.
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Owing to the impact of the Russia-Ukraine war on fuel prices globally, fuel prices in the Nordic countries are rapidly increasing
- In 2021, a liter of diesel was more expensive in Sweden, from SEK 0.15 (USD 0.014) increase to SEK 19.37 (USD 1.85). The reason for the hikes was a global rise in market prices for oil, which is currently at a three-year high. Diesel was particularly affected because it is an expensive fossil fuel with more biofuels than others and due to policies aimed at protecting the environment. In 2022, the price continuously increased due to the increased demand for diesel. The Ukraine-Russia war also impacted the fuel price globally however, the government has adopted a reduced energy tax on diesel and gasoline.
- The average value for gasoline in Finland from May to August 2022 was EUR 2.33 (USD 2.48), with a minimum of EUR 2.11 (USD 2.25) on August 15, 2022, and a maximum of EUR 2.54 (USD 2.71) on June 13, 2022. The average value for gasoline in Denmark from May to August 2022 was DKK 17.29 (USD 2.48), with a minimum of DKK 15.47 (USD 2.22) on August 8, 2022, and a maximum of DKK 18.97 (USD 2.72) on June 6, 2022. The average value for gasoline in Iceland from May to August 2022 was ISK 330.43 (USD 2.32), with a minimum of ISK 303.34 (USD 2.13) on May 9, 2022, and a maximum of ISK 345.71 (USD 2.43) on June 13, 2022.
- The average value for gasoline in Sweden from May to August 2022 was SEK 22.06 (USD 2.11), with a minimum of SEK 19.94 (USD 1.90) on August 1, 2022, and a maximum of SEK 24.14 (USD 2.31) on June 6, 2022. The average value for gasoline in Norway from May to August 2022 was NOK 24.63 (USD 2.35), with a minimum of NOK 21.71 (USD 2.07) on April 25, 2022, and a maximum of NOK 26.93 (USD 2.57) on June 6, 2022.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Nordic countries are working toward transforming the regional economy with a focus on sustainable manufacturing
- E-commerce in the region is expected to register a CAGR of 8.67% during 2023-27, supported by rising social commerce
- Market growth driven by regional road projects like Sweden’s electric roads project, Finland's expansive road network, and Norway's mega highway investments
- The Nordic region registered growth in imports in 2022, led by high imports of food, machinery, and transport equipment
- Rising commercial vehicle registrations were witnessed in the Nordics despite the overall decline in Europe
- The Norwegian government unveiled a revised National Transport Plan with a total investment of more than USD 120 billion
- Norway's USD 128 billion transportation investment and Sweden's highway development initiative driving growth
- The oil and gas, mining, and quarrying sector contributes the highest to economic development in the region, led by Norway
- The manufacturing industry accounts for more than 50% of the exports from Nordic countries
- Nordic countries registered substantial export growth in 2022, driven majorly by fuel exports
- Driver shortages and fuel costs are impacting operational costs in the Nordic countries
- Volvo trucks emerging as the market leader for electric trucks in 2022, with a market share of 42%
- Growing focus on electric vehicle adoption, rising road infrastructure investment and reduction on fuel taxes leading to positive influence on road freight pricing
- Ukraine's invasion by Russia sharply impacted Nordic PPI and CPI
