Inaction risks wave of bankruptcies
New research of the International Road Union (IRU) reveals the continuing catastrophic impact of Covid-19 on the commercial road transport industry, with a very high default and insolvency risk across the sector worldwide.
Ranked on a risk scale from one to ten, all regions of the world are standing at the highest levels, nine or ten. This gives rise to fears of a looming wave of bankruptcies in road transport, which will have a devastating effect on the global economy.
The research also shows that global losses have escalated to USD 679 billion for goods transport alone. The update is particularly disastrous for Europe, where forecast losses for goods transport operators have soared by two thirds since the summer to USD 125 billion.
If no immediate action is taken, these losses are expected to spiral further during the second wave of the pandemic, IRU warns. (ben)