A time of risk and uncertainty for vehicle logistics in Europe
By Jason Dunn2022-05-23T11:03:00
Finished vehicle logistics providers and their OEM customers met in Malaga this May at the ECG Spring Congress to discuss the current disruption affecting the automotive business and the creative solutions they were using to deal with it
The Association for European Vehicle Logistics (ECG) held its 27th General Assembly and Spring Congress in Malaga, Spain between 12-13 May. The organisation represents around 85% of Europe’s finished vehicle logistics providers, and several top experts and members from across the sector came together to discuss coping strategies amidst extraordinary global circumstances.
At the congress, ECG members drew attention to the specific problems facing the various parts of the business and many had gloomy descriptions of the logistics landscape. Lack of overall confidence in future volumes is causing a downwards trend in planned investments.
Operators’ sentiment about the sector is marked by pessimism. According to the ECG’s most recent quarterly Cost and Confidence survey, less than 20% of respondents feel optimistic about business prospects.
“Optimism is certainly not encouraged by contracts that are not fit for purpose in such rapidly changing environments,” said ECG’s executive director, Mike Sturgeon.
There are several pressures currently adding to the gloom. Inflation is casting a long shadow across Europe. According to Eurostat, the European Commission’s statistics agency, inflation across the EU as an average rose 7.5% at the end of March, and forecasts predict this will hit double figures as an average across the region this year. That figure is driven up by the higher inflation in eastern Europe.
Transport providers are responding with more flexible contracts.