RHA attends annual IRU Goods Transport Council and General Assembly

The RHA attended the annual IRU Goods Transport Council and General Assembly in Geneva this week. Over 150 delegates from 35 countries gathered to reflect on one of the most turbulent years in road transport activities around the world and look forward to challenges and opportunities ahead. 

It is clear that the global road freight industry is now in a period of continual disruption in every aspect and the importance of knowledge sharing and a joined-up approach amongst stakeholders is vital. The RHA is fully committed to ensuring its members are represented on this global stage.

The general outlook or prosperity for the sector was highlighted by a global economic professor, backed up with quality research data to support findings. The risk of recession remains very high, particularly in USA which is experiencing the largest negative results since 1970’s, it still has a $300 billion trade deficit with China. Interestingly the word recession does not exist in the mandarin language. The American Trucking Association (ATA) related that the current reduction in US import cargo will stretch its members even more, and that some 50% of US imports are actually destined for US manufactures. What happens in USA generally reaches the UK at some point, but it’s too early to call at moment. All countries are experiencing a rapidly ageing driver workforce, and there is no easy solution, the ATA stating that experienced drivers in top companies can manage to earn $100,000 salaries but there is still a shortage.

In Europe there is an increasing need to recruit drivers from outside the region or employ the services of hauliers from West Asian countries, this has resulted in exposing huge problems with issuance of Visas for drivers to either work in the EU or travel across multiple borders. In fact, the IRU suggested the problem is so big it will suppress economic recovery of trade as and when it occurs.

The IRU continues to push for simplification, harmonisation and digitalisation of rules, regulations, cross border documentation requirements for hauliers, at the heart of this is unrestricted use of e CMR documents in the EU by 2027.

The emergence of China and West Asia as an ever stronger player in road transport cannot be underestimated; in terms of trade China has opened four TIR logistics hubs in the last year alone, it has increased its use of TIR transit carnets by 525% in the last year, In terms of e HGV’s they are road testing heavy trucks with 680km range and are confident that they will soon mange 1000km range, helped by a well thought out infrastructure that provides hauliers with a charging point every 200kms, this is strategic planning on another level. As previously mentioned in this blog the Gulf Cooperation Countries (GCC) such as Dubai show no signs of slowing down, their use of TIR carnets grew by 600% in the last year, overland road transport trips to Saudi Arabia alone from Dubai up 626% in one year.