Lithuanian Forwarding Agents Signing Out /08.09.2008

Lithuanian forwarding companies are going through difficult times. About 20 companies had to stop their activities last summer.

According to Algimantas Kondrusyavichus, the President of the Lithuanian Association of Freight Forwarders Linava,  the downturn was already forecasted in the beginning of 2008.

The reason for this is the growing competition from European Freight Forwarders, especially from Bulgarian and Romanian, whose services are much cheaper, as well as constantly growing diesel oil prices.

Algimantas Kondrusyavichus believes, that business failures will continue, the hardest times are expected to come in January-March 2009.

At present  businesses are trying to stay on the market by taking loans,  selling company transport, and looking for new branches.

Lithuanian forwarders used to work in all European routes. Now they are oriented at the Balkans, Scandinavia, as well as at some Russian regions.

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