With 11.2 million people engaged in the business, logistics is unquestionably vital to the European economy. It includes warehousing, shipping, courier, road, rail, and air freight. The logistics industry has recently experienced a massive transformation, with companies shifting to automated distribution pivots.

Every company now recognizes the need for efficient logistics and a successful supply chain. In fact, companies today intend to propose embracing innovations and technological solutions that allow companies in the business ecosystem to be more competitive and increase their productivity at a time when the sector is booming due to the explosion of e-commerce.

However, European logistics, in particular, is presently dealing with the most significant and unprecedented combination of macroeconomic shocks to logistics and supply chains in decades.

The Adverse Upshots on European Logistics

The European logistics business has been front and center in the headlines daily, thanks to the compounding impacts of a driver shortage, record-high fuel costs, raw-material shortages, truck shortages, conflict, a pandemic, and the return of inflation.

COVID-19 caused most of the first disruption, affecting monetary policy, manufacturing, demand, transportation, and logistics. However, substantial additional issues such as the Ukraine war, altering EU road laws, and post-Brexit problems compounded the situation.

The Uncertain Future of European Logistics: What’s the Solution

With the preceding turmoil, it is no doubt that European logistics is going through a challenging phase. Hence, the industry must manage the consequences of these interruptions, including persistent supply issues, a lack of capacity, rising fuel prices, and a continuous scarcity of drivers. We must investigate ways to lessen the consequences of these challenges, returning global supply networks to pre-pandemic levels of efficacy and efficiency.

• Encourage Industry & Governments to Focus on the Essential Stakeholder in The Industry

Across Europe, there is a driver shortage which comes as no surprise. Conditions on the road are complex, and I’d want to see changes such as safe parking and showers and a reduced bureaucracy around HGV license training and testing.

Logically, governments have made attempts to make travel more bearable. However, we have witnessed a trend among drivers returning home more frequently, making longer-term journeys difficult. Industry and governments must collaborate closely to develop laws that benefit everyone.

• Continue To Develop & Expand the Use of Technology

Improved utilization of industry technology is a critical measure that would improve the logistics sector in Europe. It will assist in planning for the unexpected while creating a more efficient and robust network. Though one cannot foretell the future, widely used risk-based scenario modeling and forecasting can help plan for various scenarios.

Understanding the impact of driver shortages on capacity and integrating this into tendering decisions are two relevant examples: establishing alternate routes that allow for road closures and obstructions. In terms of operations, a thorough understanding of driver shortages and capacity can help develop resilience by guiding supply planning and optimal inventory levels to predict and minimize possible disruptions.

As more information becomes available, these models can be developed and automated further.

SHAOKE Logistics: We Deliver What You Desire

Choose SHAOKE Logistics as your only choice if you’re looking for a smooth transportation service in Europe. Established in 2015, our business was instituted to provide complete logistics solutions across Europe, including Customs, Trucking Solutions, Last-mile Delivery, Fulfillment, and Contract Logistics. We work on values such as:

• Transparency
• Diversity
• Inclusivity
• Professionalism
• Collaboration
• Growth