Hungary: Growth stimulus for the logistics sector

Zoltán Peternics, Managing Director of a. hartrodt hungary in Budapest, provides a closer look at the country's current economic situation on the occasion of Hungary's EU Council Presidency, which begins in the second half of 2024. Hungary saw minimal economic growth of 0.8 percent in the first quarter of 2024 compared to the same period of the previous year. In 2023, the landlocked country had slipped into recession, with the inflation rate reaching a negative record of 17.6 percent. Despite the difficult economic conditions, Zoltán Peternics is "optimistic" about his own business. He puts the annual growth rate for the number of shipments at 37 percent: "Our European overland transport is growing the fastest at 65 percent".

Regular groupage services by rail from China

"Since the beginning of the year, our regular groupage services from Shanghai and Ningbo on the Trans-Siberian Railway have been in demand again," he reports. This is due to longer transit times as a result of ship detour around South Africa to avoid the Red Sea, as well as increased sea freight rates. Hungary is a "price-sensitive market" – and rail is currently only up to 15 percent more expensive compared to vessels, which take almost twice as long from northern China.

BYD e-car plant promises a future logistics business

Zoltán Peternics expects the first factory of a Chinese manufacturer of electric cars and batteries in Europe to stimulate growth in the logistics business. China's market leader BYD plans to produce for the European market in Szeged from 2027. According to media reports, a "green ecosystem" with integrated vertical supply chains will be created on site. "Many freight forwarders will benefit from this," Zoltán Peternics is convinced. At the same time, the Hungarian government is pushing ahead with the rail expansion from Budapest to Belgrade (Serbia) with Chinese support, and a high-speed rail line is to be built all the way to Athens in Greece.

At a. hartrodt hungary, the course is also set for growth: Sea and air freight services to Southeast Asia and North America are currently being further expanded. Zoltán Peternics wants to increase his team from 23 to 27 by the end of the year – "a challenge in Hungary".