REVIEW 2023 AND PROGNOSES FOR 2024 – FRACHT FWO POLAND PERSPECTIVE

The beginning of 2024 is the usual good time to reflect on the past twelve months and attempt a concise summary of them. Unfortunately, for the Transportation, Shipping and Logistics, 2023 was not a particularly prosperous year. The geopolitical situation in Europe negatively affected the road transport sector and the condition of carriers. Declining industrial production, rising living costs and reduced consumption clearly reduced demand for transportation services. This trend was particularly noticeable in the first half of the year and continued throughout the year.

Difficulties for the logistics industry in 2023          
The market response to declining demand has been to adjust transportation rates, as seen in the marked decline in the spot rate index. In addition, the introduction of new regulations related to the Mobility Package, designed to improve efficiency and in line with the in line with policies to reduce CO2 emissions, will have long-term consequences for the logistics industry. Increased tolls on Germany’s freeways and trunk roads as of Dec. 1, as well as new regulations on imports and emission-free zones in UK cities, have further raised operating costs for transport companies, and this trend may continue into the first half of 2024.

Perspectives for 2024           
The future of the logistics industry appears uncertain and unstable in 2024. The impact of the geopolitical and economic situation will be felt by many players in the market, which is already showing signs of instability. The new year brought a more than 50% increase in the price of container ocean freight from the Far East, caused by the bypassing of the Red Sea for security reasons. This is a clear sign that a key element for success this year will be the right approach to business and increasing diversification.Początek formularza

Fracht Group as an example of a successful business model        
The Fracht Group, as a global logistics operator for industry, successfully countered the difficulties and challenges of the past year by diversifying its business areas. By offering customers comprehensive logistics solutions as a one-stop-shop solution, the company successfully mitigated risks. The dynamics of economic recovery at the end of 2023, supported by falling inflation and stimulated consumption mechanisms, forecasts GDP growth above 3%. Hoping for an imminent end to the conflict across our border and the opening of Ukraine to the flow of goods, the company is betting on supporting and smoothing the flow across the border, which is key to reviving potential.

Development directions        

In the previous year, the Fracht FWO Poland company focused on handling deliveries in imports and exports from the US, strengthening its position in both sea and air freight – based on cooperation with its local subsidiaries. The direction of growth to the African continent, with the example of the ongoing delivery of rolling stock to Ghana, confirms the company’s global reach with dozens of branches and a network of partners on the continent. The dynamic development of services in the area of project cargo for the energy, chemical and industrial sectors, as seen in successfully completed projects such as the Dolna Odra Project and the Czechnica Project, has further strengthened the position of Fracht FWO Poland.

In the Dolna Odra Project, where Fracht FWO, as logistics operator, was responsible for the delivery of engine room components for a newly built power plant. It organized the delivery of including turbines, HRSG modules, generators, transformers and other key components – a total of more than 20,000 freight tons. The Czechnica project, on the other hand, was the realization of deliveries to the new thermal power plant in Siechnice, where a total of 13 thousand freight tons of technological components were delivered, with the same scope as for the Lower Oder project.  The scope of the service offered was not limited to transportation only, but also included the foundation of the delivered turbines and generators.

Development of foreign markets and industry awards     
The Fracht Group, being a beneficiary of the EU’s climate and energy policy, has for years participated in the development and modernization of the Polish energy sector. Participation in decarbonization projects gives hope for further successes. The company does not limit its activities to the domestic market, making deliveries from China, the US, India and Europe for a variety of projects.

Last year it also carried out a project in Israel. Deliveries in the energy sector, such as 80-ton boilers from Italy to the Olefins investment in Plock and the delivery of hundreds of large-scale agricultural machinery to customers across Europe in 2023, demonstrate the diversification of customers and the effectiveness of the solutions used by Fracht FWO Poland’s team
of specialists.

It is worth noting that Fracht Group’s efforts have once again been recognized and awarded. The “Heavy Lift Project Logistics Provider of the Year” award, granted last year, and the previous “Project of the Year” award in 2022 are a matter of pride for the Fracht Group, demonstrating its commitment to comprehensive logistics solutions. Moreover, Fracht FWO Poland was also honored with the “Green Industry Diamonds” award for the best investments and most outstanding companies that contribute to the development of the Polish economy.

Summary and prognosis      

In conclusion, 2023 was a year of challenges for the logistics industry, which Fracht FWO successfully met.  Looking ahead, flexibility, diversification and effective adaptation to the changing business environment become key. Fracht FWO looks to the future with hope, ready for more challenges and achievements in the dynamic world of the logistics industry.

Last Updated on February 20, 2024 by Anastazja Lach