Here comes the end of the first month of new 2015 year. As my friend Voltaire said «it’s time to gather stones». We have finished last year with small negative profit. Revenue 152 million rubles – 34% less than in 2014. Our European partners have the same situation. There is no need to be genius to see actual situation:
• Russia is one of the biggest exporters but all goods are transferring by pipes, sea tankers or by railroad.
• Capacity of international trucking market was 7 billion Euro in one’s palmy days and the most part – import from Europe.
• Import under DAP\DAT conditions was traditionally controlled by European forwarding agents, EXW\FCA – by Russian and amount was close enough.
So European forwarding agents oriented for decades on Russian and post-Soviet market worsened their financial results by 30-40%. Considering the fact that profitability of forwarders business not higher than 2%, you can imagine the consequences from mutual sanctions coming into effect and falling of Russian currency that decreased import dramatically.
Let’s not forget about carriers: Poland is dominating by a large margin with vehicle fleet about 150.000. In situation when freight prices are awful and competition is huge – how do they manage to cover lease payments? How do they manage to even survive?
We are small-scale business. There is no need for us to maintain 150-350 employees. Our existing client base and accumulated reserves will keep us alive. Besides, Russian people are known for their stubbornness. It helped them survive blockade, win World War 2, abide 90s. Will cope with this too. What about our European colleagues – big question. We wish them courage and wise choices.
Dear German partners! Give our best regards to Frau Merkel and remind her to send Valentine card to Mr. Obama.