Cargo Business Breaks Down

According to Izvestia, nearly 7,000 carriers in Russia are on the brink of bankruptcy. Independent outlet Okno reports that the crisis is being driven by a broader industrial slowdown, higher fuel prices, rising leasing payments for trucks, increased maintenance costs, a high central bank key rate, and a growing recycling fee.

"In recent months, working has become almost impossible," said Oleg, a long-haul truck driver from the Kirov Oblast. "Diesel fuel prices have surged and are now almost the same as gasoline. Weight control checkpoints have been installed on highways, and they are impossible to avoid. Spare parts prices have jumped, and deliveries can take up to two months. Under these conditions, the business is simply no longer profitable."

Small trucking businesses are going bankrupt en masse, according to posts in the online trucking community Dalnoboy – Moya Zhizn (Long-Distance Trucking Is My Life). Leasing companies do not forgive payment delays and quickly repossess idle trucks, often buying them back at half or even a third of their market value. The companies that remain in operation are "essentially working just to cover fuel and food," hoping for an improvement that has yet to materialize.

"The market is oversaturated," Oleg said. "There used to be fewer carriers and more cargo. Now it’s the opposite. Selling trucks is an option, but finding buyers today is extremely difficult."

Economist Yevgeny (name changed to protect the source) attributes the decline in freight volumes to overall economic slowdown. Costs are rising while profits are shrinking, he said, leading manufacturers to reduce output and sharply cut demand for transport services.

Experts note that the transport system is deeply interconnected. A decline in rail freight, for example, reduces the need for trucks that haul cargo to rail terminals. Truck drivers are also affected by mobile internet outages, which disrupt payment systems. Sergei, a truck driver employed by a St. Petersburg-based company, said connectivity problems have resulted in fines for unpaid Platon, a toll system designed to compensate for damage caused by heavy trucks.

Authorities are now considering expanding the Platon system to regional highways, not just federal roads. "This won’t improve the roads; it will just mean more fees," Sergei said. 

The crisis has also hit large transport firms. Georgy Polyansky, founder of freight company Furgonof, said he was forced to shut down his business in June last year after 15 years in the industry, leaving behind multimillion-ruble debts.

"I was afraid to continue," Polyansky said. “We had already suffered irreversible losses. There was a real risk of failing clients and losing cargo. At that point, we could no longer pay drivers’ salaries, taxes, or fuel."

His company transported household appliances, clothing, footwear, sporting goods, and cosmetics across Russia. Freight rates began to fall sharply in August 2024 and did not recover by the start of 2025, contrary to carriers’ expectations. 

The crisis will only deepen, Yevgeny said, predicting a return of the shadow economy. "Ten years ago, up to 90% of the freight market operated in the gray zone. The same thing will happen again. Companies will avoid taxes, including VAT, and informal arrangements will spread. The shadow sector will grow, among both shippers and carriers."