International Forwarding Association Blog » European Logistics
European Logistics
Freight forwarders who are heavily engaged in humanitarian logistics often deal with challenges when delivering supplies to disaster-stricken zones. They must navigate damaged infrastructure, stringent customs regulations, and coordination difficulties with governments, NGOs, and local authorities. Damaged Infrastructure Infrastructure damage such as collapsed bridges, destroyed roads, or landslides can physically block routes and hinder the movement of vehicles and supplies. Navigating around such damaged infrastructure or taking alternative routes can significantly increase travel times and delay the arrival of essential supplies. When infrastructure damage disrupts conventional routes, makeshift or alternative transport methods may become necessary. Makeshift transport such as… Read more
Shipping high-risk cargo in flood-prone areas demands specialized strategies to ensure safety. Three high-risk categories that require particular attention are electronics, pharmaceuticals and chemicals, and livestock, each needing distinct protective measures. Electronics Electronics like smartphones, laptops, and televisions have circuits that direct electric signals along specific paths. When these devices are exposed to water, it creates additional connections within circuits where more current can pass than the components can safely manage. This can lead to irreversible damage. To avoid such risks in flood-prone areas, special packaging is often used. This includes moisture-barrier bags which are made from materials like… Read more
Transporting goods to European islands presents logistical hurdles that impact the efficiency of transportation operations. Key challenges include limited port capacity for large ships, dependence on ferry services, volatile sea and weather conditions, and the geographic isolation of islands. Capacity Limitations for Large Ships European islands often have limited capacity to accommodate large cargo vessels. This is because they were historically developed for smaller-scale maritime activities such as fishing or passenger transport. Expanding port facilities to accommodate large vessels is a logical step, yet, many islands are characterized by rugged coastlines and limited space. This poses challenges to expansion,… Read more
Transporting hazardous materials presents unique challenges for European logistics providers that vary greatly depending on the environment. Key areas of concern include densely populated regions, areas prone to natural disasters, and regions with poor infrastructure, each presenting distinct risks for safe transport. Densely Populated Areas In densely populated areas, vehicles transporting hazardous goods face challenges maneuvering through congested streets or navigating intersections. This difficulty increases the likelihood of accidents as well as leaks and spills. Moreover, traffic congestion and the density of road networks complicate evacuation efforts and can lead to longer durations of exposure to hazardous substances… Read more
Drones face unique challenges when tasked with delivering small shipments to rural areas. Key issues include extended range, unpredictable weather conditions, and wildlife interference, each necessitating specific mitigation strategies to ensure efficient and safe operations. Extended Range In rural areas, the distances between delivery points can be extensive, far exceeding the usual flight capabilities of most commercially available drones. For example, a drone with a battery life that supports 30 minutes of flight might only cover around 24 kilometers before needing a recharge. Yet rural delivery routes can be 80 kilometers or more from a central hub to a… Read more
The supply chain within the logistics sector faces significant challenges due to cybersecurity threats. These threats include exploiting GPS systems, conducting cyber espionage, and executing sabotage operations against goods in transit, all of which can lead to financial losses and damage to reputation. Exploiting GPS Systems Attackers can exploit GPS systems in a variety of malicious ways. First, they can change GPS coordinates to reroute trucks to locations where cargo can be easily stolen, including remote parking lots or unmonitored warehouses. Second, they can redirect shipments to incorrect destinations to disrupt delivery schedules. Third, they can install ransomware that… Read more
Advancements in technology enhance the transportation and storage of perishable goods, which results in both increased freshness and improved safety. Innovations such as controlled atmosphere technology, blockchain tracking, hyperspectral imaging, and drone inspections contribute to more efficient shipping, longer shelf life, and reduced waste. Controlled Atmosphere Technology (CA) CA technology slows down the ripening process by adjusting oxygen, carbon dioxide, and nitrogen levels. This is particularly important for products like berries and leafy greens, which are sensitive to changes in their storage environment. In addition to gas composition, CA is used to control humidity and ethylene concentration. As ethylene… Read more
Advancements in container logistics have significantly enhanced the efficiency and security of sea freight in Europe. Integrating RFID technology, real-time alert systems, and energy-efficient technologies are reshaping how cargo is monitored, protected, and conserved during transit. RFID Technology Container tracking systems utilize RFID tags to enable real-time monitoring and information management of cargo. These tags are physically attached to containers and contain unique identifiers. The identifiers unlock access to containers’ digital profiles stored in a centralized logistics management system. These profiles contain information such as the cargo’s contents, shipping itinerary, and specific handling instructions. The contents section of the… Read more
The world of freight forwarding is undergoing rapid change with the introduction of innovative rail forwarding equipment. These advancements, from modern railcar design to more powerful engines, promise to increase storage capacity, speed up transit times, and enhance safety, among other benefits. With these innovations, freight forwarders stand at the threshold of a revolution that can significantly elevate their service offerings. Modern Railcar Design Modern railcar design focuses on state-of-the-art railcars made of lightweight materials and tailored to accommodate various types of cargo. The use of lightweight materials primarily enhances efficiency. By reducing the weight of the railcar itself,… Read more
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
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
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
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
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
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
The freight forwarding industry is faced with a number of logistics challenges, including cooperation with various stakeholders, customs clearance, and optimizing transportation routes, to name a few. In recent years, there has been a growing interest in implementing AI technologies to improve cost-effectiveness, safety, and efficiency and enhance the customer experience. European freight forwarders are increasingly leveraging artificial intelligence for risk management, streamlining operations, and customer service. Streamlining Operations Leveraging predictive analytics and big data, artificial intelligence can analyze market trends, historical data, and factors such as trade regulations, holidays, and weather conditions, helping forwarders to forecast service demand…. Read more
Carriers often choose to form shipping alliances to benefit from competitive prices and wider service coverage. Such alliances are cooperative agreements that seek to utilize fleet space in the most efficient way rather than operate their own fleets separately. How do Alliances work? The main areas of cooperation are problem-solving, scheduling, vessel assignment, and stowage planning. Partners also discuss things like operational efficiencies, capacity, types of fuel used, and environmental issues. At the same time, agreements do not cover joint asset ownership, pricing, marketing, or sales. Other Forms of Collaboration The two other forms of collaboration between… Read more
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