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    Home / Useful materials / Blog / «We’re at the very beginning of the journey». Where the road haulage market is headed and what its players have in common

    «We’re at the very beginning of the journey». Where the road haulage market is headed and what its players have in common

    Anxious 2020 has been replaced by an astonishing 2021: the number of goods is breaking records, heavy trucks are in short supply, rates are increasing, and the exodus of private operators and market consolidation are not forecasts, but a fait accompli.

    At the end of May, the number of goods at ATI exceeded 270,000 for the first time in the Exchange’s history. The number of vehicles, in turn, remains at the same level. This means that the shortage of trucks is getting worse — especially in the FTL segment.

    «We have been experiencing transport shortages since last May, and the shortage is getting worse from month to month, — says Evgeny Ivlev, Commercial Director, MONOPOLY GC. — In my opinion, the deficit is primarily due to the closure of borders. According to Rosstat, in 2020, about 50 million people went abroad — a third of the population of our country. Now they predominantly stay in Russia, forming consumer activity, which leads to an increased demand for transportation. In January, Sberbank and VTB shared statistics on the spending of Russians on New Year holidays. People spent about the same amount as last year, but then most of the money was spent on airline tickets and hotels. And now that money stays in the country and contributes to consumer spending on local restaurants and cafes, entertainment and alcohol».

    People’s activities of daily living shape demand: the DIY (building materials, household goods), FMCG (Fast-Moving Consumer Goods), and HoReCa (hotel and restaurant business) sectors show a wave-like growth.

    At the same time, the work of carriers is becoming more difficult. Abolition of the UTII (unified tax on imputed income) was a big blow for private entrepreneurs and small companies. The active actions of the Federal Tax Service are forcing more and more entrepreneurs who use shady schemes in order to optimize taxation to leave the market: Experts think that this is the main reason for the transportation deficit.

    Today, the government agencies see «only one third of the freight transportation market, about one trillion rubles», says Victor Stroykov, Head of the Department for Work with Attracted Transport, MONOPOLY GC. — Another two trillion remain in the shadows, and the state is interested in «whitewashing» transportation.

    «The old schemes do not work anymore».

    The whitewashing of the road haulage market is inextricably linked to its digitalization. Carriers can be controlled much easier when documents describing their activities are stored in a unified automated system. Therefore, the authorities are encouraging the development of digital technologies and, in some cases, are implementing them themselves.

    The importance of digitalization for the road haulage market cannot be overestimated. Over the past decade, the Internet and network technologies have fundamentally changed the rules of the game, and now most of the work of both carriers themselves and their customers takes place online. 

    Digital freight forwarders and platforms where carriers and customers find each other are gradually taking over the road haulage market in virtually all segments. The most viable platforms are created on the basis of operating transportation companies with an established base, whose executives understand the laws of the market and know how to work with carriers and shippers.

    Such platforms unite carriers, consolidating the market and preserving its historically established structure with a predominant number of individual entrepreneurs, representatives of small and medium businesses.

    Many individual entrepreneurs cooperate with the digital platform Monopoly.Online. They use the platform because it’s convenient and profitable,- contemplates Evgeny Ivlev.

    Digital unites not only carriers

    Digitalization also manifests itself in the daily work of carriers. Today drivers even refuel with digital services, using fuel cards or more advanced solutions.

    Every second carrier uses some kind of service to optimize expenses and flow of documents related to fuel purchase, — says Rolan Gurdjia, Head of Oil Products Sales Department, MONOPOLY GC.

    A fuel card used to be a tacit standard in this sector. The MONOPOLY.Fuel service offered a more convenient system: its clients can refuel at gas stations throughout Russia presenting only a Vehicle registration certificate.

    Now the carrier does not need to issue a separate card for each trucker: the driver will only have to show the document, which is always in his wallet, at the filling station.

    MONOPOLY.Fuel is a processing system with all the advantages of the most famous fuel cards. Its network includes hundreds of gas stations all over Russia, and in your personal area you can get a transactional report on the fillings for a month, even if they were made at the stations of different brands.

    Fuel quality at partner gas stations is constantly monitored.

    MONOPOLY.Fuel is a logical development of the idea of fuel cards. Saving up to 4.5 rubles from each liter of fuel, the system has a number of other advantages: it supports work with EDM, helping to refund VAT, allows to analyze information on expenses in the personal area and set fuel limits to exclude the possibility of abuse. 

    Consolidation is becoming increasingly visible in other areas related to road haulage, as exemplified by the increasingly popular aggregators and platforms that provide access to roadside service facilities (parking lots, hotels, service stations). Whereas previously the use of such services was appropriate only for large vehicle fleets, today, due to their flexible pricing policy, they have also become attractive for individuals owning one or more trucks.

    Learn more about the advantages of the MONOPOLY.Fuel service

    Read more

    At first glance it may seem that the digitalization of motor freight transportation has already happened. Experts, however, are confident: it is an ongoing process that will go hand in hand with technological progress.

    We’re at the very beginning of the journey. Someone has fully digitized the document flow in his company, but many are still keeping records in Excel. And technology does not stand still, and it will continue to change the rules of the game in the foreseeable future, — sums up Victor Stroikov.

    You can take advantage of modern digital solutions right now. Learn more about MONOPOLY.Fuel on the system’s website and leave a request for connection!

    08. 12. 2021

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