Romania, a strategically located country in Eastern Europe, has witnessed significant growth in its logistics sector in recent years. Several key trends drive this development, positioning the country as a vital regional and international trade hub.
Key logistics freight in Romania:
1. E-commerce Boom
The rise of e-commerce, especially during and after Covid-19, has fueled demand for efficient and reliable logistics services in Romania. Romania became
47th largest world market for eCommerce.
Fashion and electronics emerged as the dominant categories in Romanian e-commerce in 2021, capturing a combined market share of 66%. Fashion led the way with a 40% share, followed closely by electronics and media at 26%. Food and personal care, toys, hobby, and DIY, and furniture and appliances rounded out the top five categories with respective shares of 14%, 12%, and 9%.
However, despite the growth, there are still challenges, including competition, the need for continuous improvement in logistics and infrastructure, and the potential for counterfeit products. Online retailers and marketplaces require robust infrastructure to deliver products to customers across the country. This has led to increased investment in warehousing, last-mile delivery networks, and technology solutions.
2. Industrial Development
Romania's manufacturing and industrial sectors have expanded, peaking in 2021. This is driving the need for efficient logistics solutions. The country's proximity to major European markets and a competitive cost structure have attracted foreign direct investment in various industries. This has created a demand for logistics services, including transportation, warehousing, and supply chain management.
3. Infrastructure Improvements
Romania’s transport infrastructure ranked among the least developed in the European Union. A 2018 survey carried out in Romania showed that 93% of respondents were unhappy with the country’s road infrastructure and 85% with the rail network. However, the Romanian government has made significant investments in infrastructure development, including transportation networks, roads, and railways. These improvements have enhanced connectivity within the country and with neighboring regions, facilitating the movement of goods and reducing transportation times.
4. Focus on Sustainability
There is a growing emphasis on sustainability in the Romanian logistics industry. Companies are adopting eco-friendly practices, such as using electric vehicles, reducing packaging waste, and improving energy efficiency. This trend aligns with global efforts to mitigate climate change and promote sustainable development.
5. Cross-Border Trade
Romania's strategic location makes it a gateway for trade between Eastern and Western Europe. As an EU member country since 2007 and Schengen Area member since 30 December 2023, the unrestricted flow of goods contributed to the growth of logistics services, as well as transit shipments passing through Romania.
6. Rising Demand for Cold Chain Logistics
Romania's pharmaceutical, food, and beverage industries are expanding, driving demand for cold chain logistics solutions. Ensuring the safe transportation and storage of temperature-sensitive products requires specialized infrastructure and stringent quality control measures.
Embracing multimodal transportation
To further enhance the efficiency and sustainability of Romania's logistics sector, it is essential to promote multimodal transportation. By combining different modes of transport (e.g., rail, road, sea, air), businesses can optimize routes, reduce emissions, and improve overall supply chain performance.
Benefits of Multimodal Transportation:
- Reduced carbon footprint: By minimizing empty miles and optimizing transportation routes, multimodal transportation can significantly reduce greenhouse gas emissions.
- Improved efficiency: Combining different modes of transport can often lead to faster and more reliable deliveries.
- Increased resilience: Multimodal transportation can help businesses mitigate risks associated with disruptions to a single mode of transport.
By embracing multimodal transportation, Romania can strengthen its position as a leading logistics hub in Eastern Europe while contributing to a more sustainable and efficient global supply chain.
