Motor transport is a branch of material production, which carries out transportation of cargoes on the highways. Economic specifics of this sector of economy is somewhat peculiar. Motor transport does not actually produce material values.

It participates in the production process:

  • by carrying out the delivery of raw materials and components needed for the manufacture of certain products;

  • by delivering finished products to the consumers.
  • Transportation costs are included in the cost of the finished goods or products. In some industries, this quantity may reach 30%. Transport is an important part of the market infrastructure.

    Representation of motor transport in the world In the world there are about 600 million mobile transport units.

    Among them:

  • 86% are the passenger transport;
  • 13% are the freight transport;
  • 1% are the passenger buses.
  • The greatest number of cars are in Europe (40%), the USA (32%) and Asia (21%). Road transport is being actively developed by improving the performance of vehicles, the introduction of high-efficiency technologies and expansion of the motorway network. There is a global trend of gradual transition to environmentally friendly fuels.

    Experts predict a decrease in the relative share of motor vehicles in developed countries by increasing its amount in Russia, Ukraine, China, Brazil and India. Experts suggest annual increase by 1.5-2% of the number of truck transport in the European countries until 2020. World annual growth of the roads’ length is comparable to the increase in the number of motor vehicles.

    Countries with developed industry maintain their leading positions in the quality of roads. New roads are being built both in the developing countries, but the pace of construction is not high enough.

    The share of motor transportation in the total cargo traffic Motor transport in most countries is growing faster than other types (rail, air -, sea) and is the main for movement of goods within the country and in the near abroad.

    The main advantages of the motor transport are:

  • high adaptability to market changes;
  • delivery of goods to the most remote regions;
  • possibility of delivery of goods without intermediate reloading;
  • emergency delivery of perishable and urgent goods due to rapid movement on the very well-equipped roads;
  • possibility of formation of the products delivery chains;
  • transportation of goods by consolidated shipments for several small businesses located in the same or related areas;
  • transportation of oversized cargo;
  • high flexibility and agility of equipment maintenance;
  • 75% of freight in the developed countries are transported by road.
  • In the EU a large proportion (58-60%) of cargo transportation is carried out by motor transport enterprises. For small in the extent countries the domestic transportation by road is very beneficial. Number of freight displaced involving innovative technologies are much higher than in the transportation organized without the use of modern techniques.

    State of transportation market in Ukraine Based on the survey results of participants of the business meeting "MY SMART SUPPLY CHAIN", held in October, 2015 in Kiev, 58% of the participants of the meeting noted the decline in cargo transportation market in Ukraine, 40% reported a negative trend.

    The forum participants consider the main reasons for the decline are:

  • Mutual sanctions of Russia and Ukraine;
  • Increasing fuel prices caused by devaluation of hryvnia;
  • Military operations on the territory of Ukraine;
  • Changes in the supply chain in Lugansk and Donetsk regions, the Crimea and a number of adjacent regions;
  • Offset of customer preferences towards the services from transport companies which are capable to provide a full range of services.
  • 50% of experts did not find any positive aspects of the situation.

    50% reported a positive impact on the services quality of increased competition level, displacement of the companies which are unable to provide quality transportation services, and association with the EU which facilitates the conduct of international transportation.

    Cargo turnover of the companies working with Ukrainian producers increased by 20% due to deliveries of Ukrainian goods which substitute the supplies from Russia. The share of consolidated goods in the transportation market of Ukraine has increased.

    International shipping Globalization of business has led to the growth of international transit transportations by road. There has been a sharp rise in the intercontinental multimodal traffic.

    This is due to the emergence of new international alliances, co-operation markets and business communities:

  • “NAFTA” - the North American Free Trade Agreement between Mexico, the United States and Canada;
  • European Union;
  • Commonwealth of 35 countries in the Asia-Pacific region;
  • Association of Southeast Asian Nations (17 countries);
  • Commonwealth of the CIS (12 countries);
  • and etc.
  • Over the past 20 years, the volume of cargo transportation in the industrialized countries increased by 50%.

    Impact of government agencies’ decisions on road transportation Configuration of road freight traffic is strongly influenced by decisions of government agencies. In some cases, there is the pressure of leading Western states.

    A typical example is the associated with the international embargo transporting goods from Europe to Central Asia and the Far East, bypassing Russia. In such circumstances, we have to create special transport routes such as the "Eurasian Corridor", by which the oil products are transported from the Caspian region to the GUUAM countries (Ukraine, Georgia, Azerbaijan, Uzbekistan, Moldova).

    Of great interest are the highways linking Uzbekistan with Pakistan with transit via Afghanistan.

    Among the Baltic countries there is competition for the delivery of goods from Russia to Europe. Competition improves the quality of services and causes some reduction in transport costs.

    To enter the world market Ukrainian transportation companies need to improve sustainability and security of freight transport and improve the quality of roads.

    Solving the problems of the trucking industry will allow to improve the conditions of life in any country.