TELS Maintains Positive Trend despite Negative Market Indicators
Dear colleagues and partners,
TELS Marketing Department has reviewed its work with the customers during the first six months of 2020 and provided the details to company’s management. The overall results are as follows – the increase of freight orders by 5 % and the actual profit by 6 % against the same period in the previous year.
This trend is rather low as compared to the average annual indicators in the previous several years. At the same time, we have shown immunity to downturns over the unprecedented double crisis (general global financial crisis exacerbated by the pandemic).
No doubt, COVID-19 has affected cargo portfolio greatly as some product groups decreased, while others increased. “A significant decrease in transportation volumes took place in metalworking, woodworking, car manufacturing, construction and HoReCa industries. Yet the negative trend was offset by the increase of freight transportations in the industries producing and selling food and hygiene products,” commented Ivan Samusev, the Commercial Director of TELS Group.
Despite the mass layoffs and closure of manufacturing plants in certain industries around the world, we faced a slight reduction of transportations in these segments against the level of the market decline. For example, this happened to the products in the automotive field.
Just to remind, according to the forecasts made by the Jefferies and Transport Intelligence, “a European road freight market 4.8% smaller in 2020” is the best Europe’s road freight providers can hope for (17% in the worst-case scenario). TELS has managed to maintain the positive trend during the negative period of market stress. This once again proves that we are capable of providing reliable long-term partnerships.