International Forwarding Association Blog »
Europe’s maritime trade has always depended on its ports. These ports are essential for the continent’s trade today, and many of them have histories that stretch back for centuries. Here is a closer look at five of the most important ones for the European logistics industry. Rotterdam: A Giant of the Seas Located in the Rhine-Meuse delta on the North Sea, the port of Rotterdam is the biggest in Europe. It was once the world’s premier maritime hubs before Shanghai and Singapore took the lead. What is impressive about Rotterdam is both its size and its ability to handle… Read more
Marked by intricate networks and bustling trade routes, the European freight forwarding landscape is a realm of both opportunities and challenges. While the industry giants seem to sail smoothly, small and medium-sized forwarders often find themselves navigating rougher waters. These firms predominantly grapple with three core challenges: a limited technological infrastructure, pronounced vulnerability to market fluctuations, and restricted access to global networks. Limited Technological Infrastructure: Problem and Potential In a world where immediacy is the norm, advanced technological tools such as real-time tracking and automated booking systems have emerged as essential assets. Yet, due to financial constraints, small and… Read more
Freight congestion in Europe has long been a challenge, particularly in densely populated areas and around major transport hubs. This congestion results from various factors, including seasonal travel, the rapid growth of e-commerce, and urbanization. As urban centers continue to grow, the demand for goods increases and often overwhelms existing transport routes. The ripple effect of these congestions can be seen in delayed deliveries, increased transport costs, and environmental concerns due to idling vehicles. In response, not only are innovative solutions being proposed, but many have already been implemented to address these challenges. Multi-modal Transport Multimodal transport in Europe,… Read more
The future of logistics is already here, with freight forwarders leveraging innovative technology to enhance their operations. Drone delivery, once a concept of science fiction, is fast becoming a game-changer in the world of freight forwarding. This cutting-edge solution offers unparalleled speed with real-world efficiency, economic benefits, access to previously challenging locations, and an eco-friendly approach poised to redefine the landscape of contemporary logistics. Speed of Delivery In European freight forwarding, drones stand out for three distinct reasons: they are not bound by labour laws that dictate operational hours, they soar above traffic and other terrestrial disruptions, and they… Read more
Designed to maintain a product within a specified temperature range, cold chain freight forwarding is at the heart of many industries, from pharmaceuticals to fresh produce. As the demand for such logistics grows, challenges like maintaining temperature integrity, grappling with high operational costs, and addressing limited infrastructure in emerging markets have come to the forefront, testing the resilience and adaptability of the industry. Maintaining Temperature Integrity One of the most challenging obstacles in cold chain logistics is ensuring a consistent temperature throughout the shipping process. Even a slight deviation can render some products useless or unsafe for consumption. Factors… Read more
In logistics, warehouses serve as nodes in the supply chain where goods are received, stored, and distributed, facilitating the smooth operation of the European freight forwarders’ services. Additionally, these facilities help forwarders to consolidate shipments and provide value-added services such as packaging, labelling, and quality control. Depending on the specific needs and scale of operations, freight forwarders can choose from different options, including private, bonded, cross-docking, and consolidation warehousing. Private Warehousing Private warehouses are typically owned and operated by large manufacturers, retailers, or wholesalers for storing their own goods. However, freight forwarders can also establish and manage their private… Read more
The flourishing container shipping industry, integral to the European logistics network, has prompted an uptick in demand for new, expansive vessels. Forecasts for 2023 to 2025 suggest that the freshly minted fleet will comprise 27% of the total operational capacity. This investment in new vessels is primarily driven by anticipated future demand and the enhanced efficiency of larger ships. Within the timeframe of 2023 to 2024, it is projected that around 700 ships will be completed, with a further 150 or so anticipated in 2025. Notably, Neo-Panamax size vessels account for about 45% of these orders while the most substantial… Read more
Congestion presents a considerable challenge for today’s world, albeit an unavoidable one. The repercussions translate into extended journey durations for freight transporters, a dip in vehicle usage, and a reduction in fuel efficiency. The costs associated with running a fleet climb, market reach diminishes, freight charges increase, and the predictability of delivery and pick-up schedules for truck operators suffers. However, European freight forwarders can counteract these challenges through strategies such as implementing data-driven decision-making, scheduling off-peak deliveries, employing dynamic pricing and incentives, establishing urban consolidation centres, and freight demand management. Data-Driven Decision-Making One effective approach to addressing traffic congestion… Read more
The current climate of the air freight industry may appear frail at first glance, yet optimism prevails among airlines, freight forwarders, and experts. While the situation seems bleak, they believe that it is unlikely to deteriorate any further. Indeed, in spite of recent downward trends and challenges, the industry’s outlook suggests an upcoming rise in demand, adjustments in inflation rates, and positive labor market trends, all leading towards a promising future for air freight. Downward Trends Statistics from the 22nd week leading up to June 4 reveal a downward trend in both pricing and tonnage, with volumes showing a… Read more
Reverse logistics – the process of managing the return of products from the end customers back to the seller, has become increasingly important for companies across Europe. The retail e-commerce industry continues to grow rapidly – according to Morgan Stanley’s forecast, the global e-commerce market is expected to expand from $3.3 trillion currently to $5.4 trillion in 2026. In line with the growth of e-commerce, the reverse logistics market is also poised for strong growth. According to estimates from Data Bridge Market Research, it will reach $954 million by 2029, representing a compound annual growth rate of 5.3% during that… Read more
Today’s supply chains are being impacted by multiple disruptions, but it’s not all negative. The advent of digital innovation is one example expected to enhance precision, nimbleness, cost-efficiency, and security in the logistics arena. Its adoption by an increasing number of businesses is reshaping the landscape of the sector. In 2022, the value of the digital freight forwarding sector was a smidgen below $7 billion, and it’s projected to almost triple by 2027. If the current momentum persists, these digitally-centric approaches could fundamentally alter the trajectory of the European logistics sector. Let’s look at the most important benefits of Digital… Read more
As globalization intensifies and supply chains evolve into complex networks, the freight forwarding industry is reinventing itself. Europe stands at the forefront of this revolution, leveraging multimodal transportation as a pivotal strategy. This dynamic approach integrates various transportation modes—road, rail, sea, and air and leverages their unique advantages. However, the impact of integrated transport in Europe goes beyond this, unveiling numerous additional benefits for the European freight forwarding industry. Leveraging Unique Advantages The utilization of diverse transportation modes capitalizes on the unique advantages offered by each mode. For example, cargo leaving from Paris for Eastern Europe can first be… Read more
The heartbeat of Europe’s economy, logistics, is experiencing a significant disturbance: a shortage of truck drivers. According to research published in 2022, Europe currently grapples with a shortfall of 380,000 truck drivers, accounting for roughly 10% of the total demand. This scarcity, primarily fueled by demographic shifts, the gender gap, image perceptions, and stringent regulations, is not merely an operational nuisance but a constraint impacting the entire supply chain, particularly freight forwarding. The Demographic Challenge At the root of driver shortages is a significant demographic challenge. The truck driving profession struggles to allure younger generations. Alarmingly, only 7% of… Read more
The backbone of effective supply chains, warehousing operations, often host various forms of waste. These wasteful practices, including excessive inventory, waiting time, inefficient transportation, and over-processing, pose operational challenges that directly impact the performance and efficiency of freight forwarders. The Consequences of Excessive Inventory In the warehousing context, excessive inventory involves overstocking goods beyond demand requirements. This results in storage constraints as well as high warehousing costs due to additional handling and associated labor costs. For freight forwarders, an overstocked warehouse could mean a limitation on the number of goods that can be accommodated before their forwarding to the… Read more
Freight forwarding plays a key role in facilitating trade and ensuring the efficient movement of goods across borders. Within Europe, several factors influence the freight forwarding industry, including geographical location and infrastructure, regulatory framework and customs procedures, market competition, and environmental sustainability. Understanding these factors is crucial for strategic decision-making, compliance, enhanced efficiency, market expansion, and environmental responsibility. Geographical Location and Infrastructure Europe’s strategic geographical location serves as a gateway for global trade, connecting the Americas, Asia, and Africa. The continent’s extensive network of ports, airports, railways, and roadways provides efficient transportation and connectivity within Europe and with the… Read more
International trade agreements have a significant impact on the European freight forwarding industry, shaping the landscape in which businesses operate. Navigating these agreements is important for freight forwarders as they influence trade flows, customs procedures, tariffs, and market access. The main important trade agreements with implications for IFA members are the Comprehensive Economic and Trade Agreement, Transatlantic Trade and Investment Partnership, European Free Trade Association Agreements, and European Union-Japan Economic Partnership Agreement. Comprehensive Economic and Trade Agreement (CETA) CETA is a landmark trade agreement between the European Union and Canada, which aims to strengthen economic ties and enhance trade… Read more
Customs clearance can be a challenging and complex process for European freight forwarders, due to a number of reasons. From tariffs and duties and compliance requirements to documentation, there are many challenges to navigating and moving cargo across borders. Tariffs and Duties Customs clearance often entails the payment of taxes, duties, and tariffs, which can vary greatly depending on the country of origin, type, quality, and value of goods, trade agreements, and diplomatic relations. Dealing with tariffs and duties can be a daunting process, making it important to conduct extensive research. For example, you’ll need to find out how… Read more
As the global economy becomes more complex, supply chain risk is on the rise. With globalization and the growing number of customers and suppliers, supply chains are longer and more intricate, making them vulnerable to a variety of security and logistics risks. These risks include cyber threats, economic instability, natural disasters, and political unrest, among others. To help mitigate them, freight forwarders play a critical role in developing strategies that reduce risks and ensure the smooth flow of goods. Cybersecurity Risks The key to managing cyber threats is implementing robust cybersecurity measures such as introducing secure digital platforms, strict… Read more
International shipping can be a complex process due to factors such as time zones, language barriers, and regulatory and customs compliance. This is especially true for businesses that are new to importing and exporting. One of the main decisions they should make is whether to work with a global or local logistics provider. While global operators have more resources and manpower as well as extensive networks, using a local freight forwarder also offers a number of benefits. From local expertise and personalized support to greater flexibility and faster response times, here are some benefits to pairing with a local logistics… Read more
With multiple laws, regulations, and international trade agreements, the European logistics industry is highly regulated, meaning that certain certifications, insurance coverage, and shipping documents are required to move goods across borders. Compliance is key to avoiding reputational risks, delivery delays, and penalties. At the same time, compliance can help freight forwarders gain a competitive edge and enhance customer satisfaction. Understandably, IFA members are increasingly leveraging trade agreements by staying updated, implementing robust programs, building relationships with customs authorities, and using automation. Stay Updated Staying up-to-date with changes in regulations involves monitoring trade restrictions, sanctions, export controls, and customs laws…. Read more
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