The year 2024 was a particularly challenging period for the transport, shipping, and logistics (TSL) industry. The past 12 months saw economic and legal challenges that forced a shift in financial management approaches. This situation was reflected in a sharp rise in debt collection orders, driven by the financial difficulties that transport companies faced.
Payment Bottlenecks and Quick Response
The road transport sector was particularly vulnerable to payment bottlenecks. High business operation costs, exacerbated by inflation, rising fuel prices, and wage pressures, led carriers to initiate debt collection actions more quickly after delays in payments. According to Jacek Dżumak from Pactus.eu, the number of debt collection orders in 2024 increased by 25%.
“Acting promptly on overdue receivables entrusted to our service allowed us to intervene before it was too late,” commented a representative of the company.
Four Key Reasons for the Rise in Debt Collection Orders
The first reason for the increased demand for debt collection services in the TSL sector was the rise in operating costs and inflation. According to the Team Leader from Pactus.eu, rising fuel prices and increased operational costs significantly strained the budgets of transport companies. For businesses with their own fleets, fuel constituted a substantial portion of monthly expenses, and inflation further impacted wages, insurance, and logistics services. This led to shrinking margins, which compelled carriers to pursue receivables more assertively.
The second reason for the increase in debt collection in the TSL sector was geopolitical factors and the war in Ukraine.
“The conflict beyond the eastern border disrupted cargo flows and forced changes in supply chains. While some companies found a niche in transporting strategic goods, such as grain, the overall economic destabilization increased financial risk in the TSL sector,” said Jacek Dżumak from Pactus.eu.
Additional reasons for the increased interest in effective debt collection in transport, shipping, and logistics are related to regulatory changes. As the expert from Pactus.eu notes, 2024 brought significant changes stemming from the European Green Deal.
“The obligation to purchase low-emission vehicles, install modern tachographs, and comply with strict emission standards required substantial financial investments. Companies also faced additional administrative costs related to environmental reporting and emissions management,” said Jacek Dżumak.
The final but significant reason for the rise in debt collection orders is the increased financial awareness among TSL sector entrepreneurs.
The low profitability of transport services led to greater awareness among business owners about protecting their financial interests. Over the past 12 months, carriers increasingly turned to professional debt collection services, viewing them as a key tool for maintaining financial liquidity, according to the expert from Pactus.eu.
The Debt Collection Industry in 2024
Faster referrals of cases to debt collection resulted in shorter recovery times and more effective actions.
“Immediate debt collection efforts helped mitigate the risk of losses stemming from restructuring proceedings or the bankruptcy of contractors,” said Jacek Dżumak from Pactus.eu.
The challenges of 2024 forced TSL entrepreneurs to adopt more decisive financial management strategies and react more quickly to payment delays. Rising costs, regulatory changes, and geopolitical instability have shaped a market over the past 12 months where debt collection services have become essential support for many transport companies aiming to maintain financial liquidity and ensure a steady flow of receivables.
Source: ManagerPlus
