Germany expects an increase in bankruptcies of small and medium-sized companies

The transport sector in Germany expects a new increase in bankruptcies in light of the deteriorating situation against the backdrop of the repercussions of the Iran war. The head of the German Federation for Land Transport, Logistics and Waste Disposal, Dirk Engelhart, said in statements to the German News Agency: “Under the current circumstances, bankruptcies will continue to rise,” adding that this will primarily affect small and medium-sized companies. Engelhart said: “The situation is currently catastrophic,” pointing out that the rise in prices at gas stations since the beginning of the Iran war constitutes a major burden on medium-sized companies in Germany. He pointed out, on the other hand, that the sector’s situation was very tense even before the outbreak of the war.

He stressed that the biggest problem is the “severe shortage of drivers,” as the sector lacks about 120,000 truck drivers, with an increasing trend in this shortage. Inglehart said that medium-sized companies reduced their capabilities in response to difficult circumstances, considering this a worrying development because it does not appear in bankruptcy statistics. He added: “If the economy recovers or a crisis or defense situation occurs, sufficient transport capabilities may not be available.

For his part, Executive Director of the German Shipping and Logistics Federation, Frank Hoster, said: “In general, the economic situation is very bad. The logistics sector is also suffering as customer conditions deteriorate… revenues and profits are eroding.” Hoster explained that the shipping and logistics sector does not feel bankruptcies as acutely as the land transportation sector, but he clearly expected an increase in the closure of companies there. A week ago, several unions in the transport sector called on German Chancellor Friedrich Merz in an open letter to take quick measures to confront the cost crisis, warning that rising energy prices and operating costs, along with increasing economic pressures, are pushing many companies to the brink of bankruptcy. These unions called for reducing taxes on energy and electricity, and eliminating duplication of carbon dioxide burdens in land transport of goods, in addition to taking rapid measures to reduce burdens, such as setting a ceiling on energy prices or providing compensation.