Figures to help navigate the jungle of freight transport, which is becoming increasingly strategic yet increasingly in crisis

The government has approved aid for lorry drivers in the hope of lifting the blockades and reducing the disruption that is spreading from the south to central Italy (particularly Lazio) and the north. Whilst it was at it, it also included support for agriculture and fisheries, much to the satisfaction of Minister Lollobrigida. A total of 105 million euros has been allocated to tackle high diesel prices – an inevitable measure dictated by the state of necessity. While the allocation may be insufficient, the real weakness lies precisely in this state of necessity. Freight transport, which in Italy takes place almost entirely by road, is increasingly strategic and increasingly struggling, yet it is being addressed without a strategy and without alleviating its real hardships.

Lorry drivers have been causing a stir, making threats and staging blockades for some time now, and not just because fuel prices have risen. Virtually all the numerous organisations defending the sector’s interests – starting with those affiliated to Confindustria, Confartigianato and the Lega Coop, and extending to other, more or less independent bodies – have drawn up a substantial list of grievances. This list calls not only for financial support (handouts, as the more militant among them call them), but also for measures that trade union jargon refers to as ‘structural’. They have made these demands of this government and previous ones because there are issues that have been festering for a long time and are now heading towards decay. It must be said, in their partial defence, that it is not easy for anyone to navigate the jungle of the road haulage sector; there are no compasses to guide the way, nor are machetes needed to clear a path.

There are 76,083 businesses in Italy (up-to-date figures from Unioncamere), most of which are small, if not tiny. Over the past ten years, the sector has lost more than 20,000 of them, including over 4,500 in the last two years alone. This decline has affected sole traders, whilst a trend towards consolidation has seen an increase in limited companies, which now account for 37 per cent of the total. Those in the middle ground – that is, the 33,000 small companies – have minimal profit margins, barely 2–3 per cent, at a time when the increase in traffic (which is positive in itself as it is a clear sign of economic dynamism) requires investment not only in new, technologically advanced and safer vehicles, but also in organisational platforms utilising IT systems. Concentration is synonymous with market maturity; with over one billion tonnes transported each year, the market ranks fifth after Poland, Germany, Spain and France. Not only that, but it represents both an advantage on the demand side and a challenge on the supply side of the service. The gap, however, has gradually widened.

The sector’s turnover stands at 60 billion euros, accounting for more than half of the turnover of the Italian contract logistics sector, which the Milan Polytechnic Observatory has estimated at 112 billion euros. The pie is not divided equally. An elite group of 1,068 companies generates €17.4 billion, equal to one-third of the sector’s total, and owns 32.5 per cent of the vehicles on the road. The remaining companies share €42.6 billion, with an average turnover of €433,000 compared with €16.3 million for the major operators.

Only 94 companies exceeded the €50 million turnover threshold. Brt (formerly Bartolini of Bologna) remains at the top of the rankings, with €1.9 billion in revenue, the only company to break the €1 billion mark. It is now controlled by Geopost (a subsidiary of the French postal service) and has a turnover almost four times that of the second and third-placed companies: Arcese Trasporti with €587 million and Stef Italia with €585 million, which specialises in the cold chain. Next come the Executive Group (578 million, logistics and third-party transport) and Zenit (463 million, fuel distribution), followed by a series of smaller players. It is clear that, although market concentration has increased by 46 per cent over ten years, it is still not sufficient to compete with giants such as the German firm DHL, which has a turnover of over 80 billion euros, the Danish firm DSV, which is targeting 40 billion, and the other major players: the Swiss firm Kuehne+Nagel and the Lithuanian firm Girteka – all names that motorway users see constantly on lorries.

The road haulage sector, too, must contend with the demographic winter. Over the next five years, 86,224 Italian drivers – 28 per cent of the current workforce – will retire. To offset these retirements, over 17,000 new drivers would need to enter the market each year, but over the last two years the number of young drivers has increased by only around 2,000. “The gap between demand for and the supply of qualified drivers is emerging as one of the main structural risk factors for the sector in the coming years,” writes Federtrasporti. The other gap concerns earnings. Looking at employees, the contract for mobile staff stipulates a minimum gross salary of 2,000 euros, but the basic pay serves only as a reference point. In fact, the salary depends on job grade, driving licence, type of vehicle, and whether routes are domestic or international – and thus on travel allowances, overtime, night shifts, and company or individual agreements. What is certain is that they are not rolling in money and carry out a demanding, often gruelling job. On average, the net income is not particularly attractive, yet in the logistics sector, the issue of drivers’ wages is strategic: without reliable drivers, even efficient warehouses, advanced software and optimised planning are not enough to guarantee on-time deliveries.

This is also one of the key points in the ongoing negotiations with the government, which have been underway for months. From 20 to 24 April, a transport strike was organised to demand changes to legislation (on safety, the Highway Code, the use of fuels and renewable energy sources) alongside financial support such as a fuel tax credit, motorway tolls and the reimbursement of excise duties. Although the government cannot accommodate every single demand, some common priorities were identified by the road haulage sector’s general assembly, which met on 8 and 9 October and was attended by 11 organisations. Even in this highly fragmented and complex sector, there is a clear need for a systemic approach and a policy that goes beyond a hastily convened Council of Ministers meeting.