How are logistics companies in Romania preparing for a 2024 with new tax measures?
From：Taiwan Trade Center, Bucharest
The year 2024 seems to be the same or maybe even more complicated than 2023, with two persistent conflicts in Israel and Ukraine and with new fiscal measures adopted by the Romanian Government, which will come into force at the beginning of the year.
Intermodal&Logistics asked a number of logistics market players what decisions they will make for the coming year and what will be the biggest challenges for the logistics market.
GOPET Romania – focus on small and medium customers
Although 2024 does not seem like it will be easy at all, GOPET Romania's main objective is to maintain agility and adaptability to market fluctuations, as well as to integrate into the portfolio several customers from among small and medium-sized companies through the development of the LTL segment of grouping).
"In the long term, the priority remains investing in green logistics and increasing productivity by identifying and implementing solutions that allow this," explains Anda Draghici, chief marketing officer of GOPET Romania.
ID Logistic is preparing to enter a new segment
At the same time, ID Logistic representatives say that they are still open to development, with a great emphasis on responsibility and quality. "We will most likely enter a new segment (for us) and open a few more new warehouses. We believe that challenges are what help us maintain high standards in our operations."
Ceva Logistics – investments in green logistics and strengthening the market position
For 2024, Ceva Logistics has ambitious development plans. Our company's top priorities for the coming year include continuing to invest in advanced technologies and digital solutions to improve operational efficiency and respond quickly to market demands.
"We are committed to strengthening our sustainable practices and helping to reduce our environmental impact. We will implement strategies and initiatives for responsible resource management and carbon reduction.
We will explore opportunities to expand into new markets and strengthen our presence in key regions.
The diversification of the product and service portfolio will be essential to adapt and respond to the challenges specific to each region. Strengthening collaborative relationships with our strategic partners will be essential in providing competitive logistics solutions capable of keeping up with the latest trends and innovations.
These priorities reflect our commitment to continue to grow and adapt to an ever-changing business environment.
By implementing these plans, we aim to strengthen our position as leaders in the industry and bring significant value to our customers and stakeholders in 2024", said Adriana Amancei, Sales Manager Air & Ocean Southeast Europe Ceva Logistics.
Gebrüder Weiss Romania – completion of the new hub in Popești-Leordeni
Viorel Leca, General Manager of Gebrüder Weiss Romania, says that for 2024 the company proposed to complete the investment in the new logistics hub located in Popești Leordeni, as well as to consolidate the business. "Of course, we will continuously adapt to market conditions and focus on diversifying our portfolio of clients and services so that we can promptly respond to the requests and needs of our partners."
Recession, reduced consumption or constant adaptation among the biggest concerns of logistics companies in 2024
When asked what their biggest concern is for next year, logistics companies mentioned the recession, a reduction in consumption or adapting to a constantly changing business environment.
"If Romania follows the trend of European countries, we can expect a recession and a reduction in consumption generated by the unbalancing of the cost of living with average net salaries. Somewhat lower volumes, but only by a few percentages (not significant drops)", the representatives of ID Logistics convey.
For Ceva Logistics, one of the main concerns for 2024 is managing and adapting to a constantly changing business environment.
“Factors such as transportation market volatility, economic uncertainty and the pace of technological developments can influence how we conduct operations and plan strategies. At the same time, we focus on maintaining a skilled and motivated team in a competitive environment where employee expectations are evolving.
We want to successfully manage the transformations planned in 2024 and maintain a competitive position in the fields of maritime, air, road, rail transport, finished vehicle logistics and contract logistics", states Adriana Amancei.
At the same time, the representatives of GOPET Romania say that it would be extremely problematic to extend and intensify border controls inside Europe, against the background of potential escalations of the conflict in the Middle East.
"However, even closer, the new tax policy worries us the most because it can cause major problems of predictability both on our own business and on the evolution of the companies that are our clients, especially when we refer to small and medium-sized companies. They represent approximately 50% of our portfolio, and variations in these segments can have a significant impact on efficiency at the planning level.
The hauliers are also exposed, fluctuations in the number of active companies directly impact the existing capacity, potentially creating a shortage of trucks and, implicitly, price increases ", says Anda Draghici, Chief Marketing Officer of GOPET Romania.
How will market players be affected by the 2024 tax measures?
On September 26, 2023, the Romanian government adopted an emergency ordinance that brings important fiscal changes to reduce the budget deficit. A series of measures that could affect the business environment will apply starting in 2024.
Viorel Leca, general manager of Gebrüder Weiss Romania, states that, following the tax measures that will come into force on January 1, 2024, the financial pressure on the company he represents will increase " but we will continue to invest in the steps necessary to carry out the activity (technology, equipment, human resources, etc.)."
On the other hand, the representatives of ID Logistics say that they will not be affected more than the rest of the logistics players in Romania. "We will look for ways to minimize the effects and I am sure we will find them. We are also closely monitoring the developments in other European countries to increase our chances of success".