As the world limps back to normalcy, the impact of Covid-19 is becoming more and more clear. Severely impacting the commercial road transport industry, the virus, as per a report released by the International Road Transport Union (IRU) recently, chronicles considerable loss and pain. Closely monitoring the situation as it evolved, the IRU report has assessed the impact of the virus on passenger and freight transport companies from 78 countries across six continents. It has put the collective loss suffered by passenger and freight transport companies at Euro 551 billion. Incorporating factors like restrictions and facilitation measures, the report puts the downfall in annual turnover globally of the goods transport industry at 18 per cent.
Stating that the worst off was the passenger transport, the report underlines the loss of over Euro 80 billion in Europe. It also underlines the revenue downfall of 57 per cent. Pointing out that the transport and movement restrictions resulted in severe disruptions to supply chains and mobility networks, the IRU report draws attention to the ripple effect it caused. The overall economic slowdown it has led to. Leading to a significant slowdown in the transport industry, severely affecting the operating finances of the transport business (apart from revenue and cash flow), the effect of the economic downturn in the aftermath of Covid-19, as per the report, has resulted in the transport industry witnessing many players inching closer to bankruptcy. Highlighting the role of road transport as a driver of economic and social activity the world over, the IRU report has highlighted considerable risk from Covid-19.
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