Sharp increase in entrepreneurs exiting the Dutch transport and logistics sector in 2024

Eastern Europe emerges as an alternative market for logistics equipment

• Bankruptcies in the sector to rise significantly this year.
• Demand for warehousing does not hold up post-COVID
• Stricter environmental regulations in the EU drive sales to Eastern Europe.

In the first three quarters of this year, the number of entrepreneurs exiting the Dutch transport and logistics sector has already surpassed the total for 2023. This is according to data from Troostwijk Auctions, which has observed a growing percentage of bankruptcies in this sector. The auction platform reports that entrepreneurs in this field are facing difficulties due to factors such as reduced demand for warehousing and retail services, as well as stricter environmental regulations. On top of this, digital auctions are increasingly popular among entrepreneurs opting to sell their fleets and other logistics assets.

Trustees have auctioned assets from 37 transport and logistics companies, due to bankruptcy, on the Troostwijk platform this year. The auction platform expects to see at least 11 more bankruptcies by the end of the year, bringing the total for 2024 to approximately 48—an increase of 60% compared to last year. Additionally, 20 entrepreneurs have auctioned off assets for voluntary reasons, such as retirement or lack of prospects.

Oversized inventories and bankrupt retailers
The rise in business closures in the transport sector is indicative of an industry facing challenging times. “During the pandemic, businesses stockpiled more inventory to be less vulnerable, and transporters scaled up their warehousing,” according to  Mattijs Kuiper, Account Manager Transport & Logistics at Troostwijk Auctions. “It has become evident that this development is not lasting, and part of the demand has disappeared. Additionally, the increase in retail bankruptcies is leading to further declines in orders. As a result, some entrepreneurs are finding themselves in a tight spot.”

Stricter environmental regulations
Another factor at play is the Dutch environmental legislation that mandates fleet sustainability. “Dutch entrepreneurs are required to make their fleets more sustainable, which is a difficult task, especially for medium-sized companies,” says Kuiper, who notes that many diesel vehicles are being sold to Eastern Europe. “The platform offers a large market across Europe. We are seeing these assets get a second life in countries with less stringent regulations, where they are  still an improvement over the highly polluting equipment currently in use. In this way, we help entrepreneurs across Europe align their fleets with the emission standards of their respective countries.”

Romania as a hotspot
Driven by nearshoring, which sees tasks outsourced to organizations in nearby countries, Romania has become an interesting sales market. After Belgium, the majority of bidders on Troostwijk's platform come from this Eastern European country, followed by Germany. "Romania has a strategic location near key markets: the EU, CIS countries, and the Middle East. This makes it a trade route between Europe and Asia. Moreover, since the war in Ukraine, many transport routes have shifted to the region, making Romania even more attractive as a transit hub.”

Opportunities for traders
In addition to entrepreneurs exiting the business, more and more traders are becoming active on Troostwijk’s auction platform. They employ a multichannel sales strategy, with a primary focus increasingly shifting from regional showrooms to online platforms like Troostwijk. “Traders can tap into a vast digital network across Europe and beyond. The platform averages 4 million visits per month, with buyers from 175 countries.”