Russian Forwarder Market Becomes Smaller

02.07.2009 (12:50)

Three dozens significant players have left Russian transport and logistic services market this year.

It was caused by the crisis and its consequences for Russian economy. Such announcement was made by top-management of the Association of Russian Forwarders at the international forum “International Forwarder’s Day”, held in the framework of VIII International transport exhibition Inter-TRANSPORT (Odessa).

“Worsening of the financial condition of the forwarding market players, the reduction of the demand for their services made a number of forwarders leave the market. Last year approximately 30 forwarding companies, which couldn’t continue their work in the sector because of complicated financial conditions, withdrew from the Association of Russian Forwarders,” said Yuri Sitkov, Director of the Association of Russian Forwarders.

In his words, the crisis caused “a great pressure” on the Russian forwarding market. “There was a reduction of cargo flows important for this sector, including metal, chemicals, fertilizers, cement, timber. This drop provoked a 30% decline in the profit of the national transport sector. Some our members suffered even more significantly. For example, in Q1 of 2009 the profit of TransContainer fell 60-fold year-on-year. It’s an evidence of the condition of container transportation in Russia as well as of the RF forwarding market on the whole,” emphasized Mr Sitkov.

On the other hand, there has appeared an optimistic tendency. “This year about 20 organisations have joined the Association. Among them there are companies from Moscow and Saint Petersburg, as well as from Far East, Chita and Irkutsk. It makes us think that Russian forwarding market will be more consolidated in future,” said Mr. Sitkov.

By Vladimir Katkevich
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