TRANSPORTATION

A blurry outlook ahead amid new Covid-19 variants

S

Sensitive risk for entreprises

  • Fragmentation

  • Internationalization

  • Capital Intensity

  • Profitability

  • Fragmentation

  • Internationalization

  • Capital Intensity

  • Profitability

  • Container liner shipping supported by China’s soaring market share in global trade
  • The larger the country, the better for rail (passenger and freight) transport
  • Sea (and rail) transport segment less fragmented than air and road ones
  • Hydrogen-powered planes project being a flagship of the EU’s multibillion-euro Covid-19 stimulus package
  • Rail transport considered as the best positioned to cash in on the “green transition”
  • Road transport coping with the rise in green-related tax tolls
  • Protracted travel restrictions wreaking havoc on many transportation players, especially airlines
  • Companies' profit margins dependent on changes in fuel prices, regardless of the means of transport
  • Highly leveraged airlines hardly able to proceed without any further state support
  • Inability of (road) transport companies to pass fuel price rises on to customers
  • Looming investments required for reducing the carbon footprint of the industry

Key players

Country Role Sector risk
China

#1 market by revenue

D

High risk

United States

#2 market by revenue

C

Sensitive risk

Japan

#3 market by revenue

B

Medium risk