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A Good Time for the Giants - transport whales are devouring Lithuanian sector plankton: we have disrupted transport ties with Belarus and Russia, we are ceasing to be a transit state, we are losing jobs and budget revenues. Turkey, Georgia, Azerbaijan, Kazakhstan, Moldova, Uzbekistan are too far for Lithuania


Anti-Chinese, anti-Russian and anti-Belarusian Lithuanian politicians must be tried and punished for the destruction of Lithuania.

 

The Lithuanian transport sector is currently undergoing a major transformation, driven by geopolitical shifts and a changing market. Although the severance of ties with Russia and Belarus has caused serious challenges, the dynamics of the sector show both signs of decline and attempts to adapt.

Key sector trends (2024–2026)

• Market concentration and “stagnation”: Analysts note that due to increased costs and stricter regulation, it is becoming increasingly difficult for smaller companies to survive, which is encouraging market consolidation.

• Orientation to the West: About 83% of Lithuanian transport companies now associate their future with Western Europe, despite lower margins and high competition there.

• Performance: According to the data at the end of 2025, stability prevailed in the sector, but almost 43% of companies assessed the year as unsuccessful due to the general economic slowdown.

• Export growth: Despite the sought-after Eastern markets, in 2023 Lithuanian road transport services exports grew by 5.6% and reached almost 6 billion euros.

• Challenges and losses

Change in transit status: Lithuania is indeed losing its role as a traditional transit hub between the East and the West. This directly affects road transport, railways and the port of Klaipėda, which were most dependent on cargo from Belarus and Russia.

• ​​Labor shortage: The largest in 2026 The challenge is not the rise in fuel prices, but the shortage of drivers and the tightening migration policy, which may reduce the competitive advantage of Lithuanian carriers over competitors from Poland or other countries.

• Budget revenues: Although the freight transport sector generates about 10% of the country's GDP, attempts are being made to compensate for the lost revenue from Eastern transit by increasing efficiency in the West, but profit margins there are significantly lower.

Long-distance markets and alternatives

Although the mentioned Central Asian or Caucasian countries (Kazakhstan, Uzbekistan) are logistically distant, they are becoming important alternatives for those carriers that specialize in specific routes, but they cannot fully replace the former mass transit flow from neighboring Eastern countries.

More information about state budget planning and economic forecasts can be found on the website of the Ministry of Finance or follow the sector news in the reports of the Transport Innovation Association.

 

Comments

 

Reader_B90AD4:

 

“ON THE CRITICAL SITUATION IN THE LITHUANIAN TRANSPORT SECTOR AND THE DESTRUCTIVE POLICY OF ALLOCATING INTERNATIONAL ALLOWANCES - Address1. Market consolidation and a threatening wave of bankruptcies

 

At present, the European transport sector is undergoing aggressive consolidation. Due to drastically increased costs (fuel prices, road taxes, wages and insurance premiums), the operating margins of small and medium-sized companies have become negative. While large market players are taking over weakened companies, many Lithuanian carriers are teetering on the brink of bankruptcy, financing their activities from their last reserves. This is not only a matter of business, but also of the economic stability of the state.2. Imbalance and unequal exchange of permits (the example of Turkey)One of the biggest problems is the short-sighted policy of state institutions in distributing international freight transport permits (the so-called "dosvols"). An obvious example is relations with Turkey: Lithuania and Turkey exchange, for example, 3,000 permits. Lithuanian carriers actually use only 200-300 permits per year, because the market there is not favorable or accessible to us. Meanwhile, Turkish carriers fully use the entire quota of 3,000 permits and request additional permits during the year. In this way, Lithuania hands over the market to third-country carriers without receiving any real mutual benefit. A similar situation is observed with other countries: Georgia, Azerbaijan, Kazakhstan, Moldova, Uzbekistan. 3. Institutional myopia or systemic gaps? A reasonable question arises: whose interests are represented by the institutions responsible for this distribution? The exchange of quotas "one for one", when the national carrier uses only 10 percent. of its share, is either a lack of competence or deliberate harm to the business of its own country. Lithuania is effectively giving away its cargo market to third-country companies, thereby destroying local taxpayers.

Reader_B90AD4:

Due to the excess of foreign carriers, which are given easy access to Lithuanian cargo, freight prices are falling below cost. Lithuanian companies are unable to compete with carriers from countries where operating and labor costs are several times lower. Inviting third-country carriers to transport Lithuanian cargo means signing a death warrant for our own transport sector.  Quotas must meet the real needs of Lithuanian carriers (parity based on actual use, not on the number of paper forms). The state must protect its business, not create preferential conditions for the expansion of third countries. If urgent measures are not taken to protect the internal market, the Lithuanian transport sector, which has long been one of the engines of the country's economy, will become only a service staff for foreign logistics giants.

Reader_2707D6:

 

And where do carriers buy their trucks from? Don't they produce trucks in Lithuania? Perhaps you would like the state to start patronizing Lithuanian truck manufacturers (which, haha, do not exist, as do drivers). A free market is a free market. If you don't buy Lithuanian products (trucks), you import them without discrimination, then don't cry about a free market for services either.”

 


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