Market Trends of switzerland courier, express, and parcel (cep) Industry
Switzerland's transport and storage sector YoY growth hits 4.89% in 2022 driven by electric vehicle demand
- The transportation and storage sector's year-on-year growth increased from 4.36% to 4.89% due to the growth in Swiss electricity vehicle demand as a result of increased electrification across sectors. Switzerland's transport industry is diverse, encompassing a 250-million-kilometer road network, over 5,000 kilometers of railway infrastructure, a public transport network spanning more than 20,000 kilometers, and Swiss airlines covering over 550,000 kilometers of airline routes.
- Switzerland's inland freight transport accounts for approximately 30 billion tonne-kilometers of cargo each year. Leading freight companies in Switzerland, such as SBB Cargo and Kühne & Nagel, play significant roles in this industry, with SBB Cargo transporting around 50 million net tonnes annually and Kühne & Nagel being a global leader in freight and logistics across various modes of transport. However, the scarcity of suitable logistics areas near highways and urban areas impedes the industry's growth, pushing companies into suboptimal locations, resulting in operational difficulties, higher traffic congestion, and increased environmental pollution.
- Transport activity will increase as economic growth fuels transport demand, and transportation availability drives development by facilitating specialization and trade. The "Cargo Sous Terrain" project aims to construct a tunnel stretch between Härkingen, which has several warehousing and distribution facilities, and Zurich, which will cost about CHF 3.4 billion (USD 3.6 billion) and will be running by 2030. For the transportation of goods, electric-powered, self-driving vehicles will be used. The system will also include an overhead cableway that will run at double speed under the tunnel's roof for fast transport of small parcels or goods.
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With fluctuating gasoline prices, the average price reached USD 1.77 per gallon in H1 2023
- Natural gas and diesel experienced the maximum impact of COVID-19 in 2020. Natural gas prices declined by negative 3.23% YoY, and diesel prices declined by negative 3.03% YoY in 2020. However, the price of natural gas increased by 45% in 2021 due to the continued conflict in Ukraine and the possibility of further sanctions against Russia. The global price of fuel has surged, resulting in a substantial increase in the cost of petrol and diesel for drivers in Switzerland.
- During the specified time period, the average price of gasoline in Switzerland was 1.81 CHF (USD 1.95). The price fluctuated between a minimum of 1.77 CHF (USD 1.91) on January 16, 2023, and a maximum of 1.83 CHF (USD 1.97) on January 2023. To provide context, the average global price for gasoline during this period was 1.64 CHF (USD 1.77) per gallon. Switzerland has put more sanctions on Russia because of the war in Ukraine. The new sanctions stop transporting Russian oil and petroleum that cost more than USD 60 per barrel. In March 2022, Switzerland's petrol costs about 2.23 CHF per liter (USD 2.41), and diesel costs about 2.35 CHF per liter (USD 2.54).
- In the fourth quarter of 2022, Switzerland's GDP did not show any growth due to a difficult international situation that hindered the industrial sectors and led to a decrease in goods exports. However, by the end of 2024, the energy situation in Europe will improve, inflation rates worldwide will decrease gradually, and global demand will recover to some extent. As a result, economic growth in Switzerland for 2024 is expected to be 1.5%, with an average annual inflation rate of 1.5%, slightly lower than the previous forecast of 1.6% in December.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Manufacturing led growth through Industry 4.0 driving the economy of Switzerland
- Swiss inflation lower than other countries largely due to a strong Swiss franc and regulated pricing
- Manufacturing segment's revenue in Switzerland is anticipated to record a CAGR of 3.60% during 2023-28
- Switzerland adopting sanctions on Russian crude oil and petroleum products to reduce fuel import reliance
- The manufacturing segment is the major contributor in Switzerland with rising consumption of industry goods in the country
- The e-commerce segment in Switzerland is expected to record a CAGR of 12% during 2023-27
- Watch exports worth USD 27 billion spurred the export growth in Switzerland in 2022
- Switzerland ranked 3rd in LPI due to investments of USD 4.69 billion, upgradation of roads for efficient transportation networks
