Competition in the market of road transport

Competition – it is an economic process of interaction, relationship and struggle between the projected market companies in order to provide the best opportunities to market their products to meet the diverse needs of customers.

     In terms of business services, in our case – the freight, we can distinguish types of competition on the scale of development and on the price and non-price form.

On the scale of development, there are four main types of competition:
– Local (among some carriers in the region, a city or a certain direction);
– Branch (by mode of transport, by type of transport, by type of services provided);
– National (domestic carriers competition within the country);
-global (competition in the international market of cargo transportation services).

Price and non-price competition speaks for itself:
Price competition – competition of entrepreneurs, which is conducted by reducing the price of traded goods (services offered).

Non-price competition is based on improving the provision of services to the customer choice. Range of services includes the provision of various types of transport, working both domestically (trucking in Ukraine), and the ability to provide transportation on international routes, cargo insurance, brokerage etc.

      In the development of the logistics market in Ukraine there are certain existing historical and economic characteristics. After the collapse of the USSR, Ukraine inherited not only the transport infrastructure, but the material and technical basis, because we were geographically at the crossroads of important road and rail arteries of the former socialist republics. In the 90s, mainly trucking services provided transport enterprises (ATP), but as the country’s economic development and the emergence of new markets began to emerge carriers private traders, and when it reaches a certain critical mass of them were first Ukrainian expedition. Booming growth of these companies fell into the middle of the two thousandth’s, but the crisis of 2008 significantly redistributed the market and exacerbated a sluggish before competition between them. After the crisis, not only survived, but took the lead of providing additional (complex) services in the field of cargo, namely:
– Transportation of both standard and oversized cargo;
– Transportation of Dangerous Goods;
– Transportation of cargoes;
– Rail transportation;
– Customs brokerage services;
– Cargo insurance;
– Warehousing;
-the possibility of granting a grace period.

     One of the few such companies providing integrated logistics solutions for large, medium and small businesses is Neolit Logistics GC. It is through this innovative approach, the company has assisted many businesses and companies that have reduced their material costs by reducing staff and logisticians brokers have insurance related services and storage that allowed our customers to consolidate their working capital on the main – on their products. Yes, it helped GK Neolit Logistics take a leading position in the freight market in Ukraine and abroad

     Empirically, the company concluded that a healthy competitive environment helps distinguish among the many proposals really reliable and strong partner for the business. Regardless of whether it is a business that offers a product or service.