Navigating Holiday Supply Chain Challenges in European Freight Forwarding
December 28, 2023
The holiday season is a critical time for freight forwarders as it presents a range of challenges. They contend with supply chain disruptions, heightened theft and loss risks, customs requirements, and the impact of winter weather on transportation.
Supply Chain Disruptions
The holiday period is notorious for supply chain disruptions. Increased traffic on major shipping lanes like the English Channel and the Baltic Sea routes leads to congested routes, increased transit times, and delayed deliveries.
Freight forwarders must be skilled at responding to these disruptions, which often require the implementation of contingency plans. These plans may include rerouting shipments through different routes, such as the Cape of Good Hope or the Northern Sea Route. Another strategy is to utilize different carriers, which involves switching from sea to air freight to ensure timely delivery. Additionally, increasing stock at key locations in Europe, such as Rotterdam, Antwerp, and Frankfurt, or working closely with suppliers to adjust delivery schedules can be effective.
Increased Risk of Theft and Loss
The risk of cargo theft and loss significantly rises for freight forwarders due to the high volume and value of goods in transit. This period sees a surge in shipment of high-value goods like electronics and luxury items, which attract thieves. Thefts frequently occur at transit points such as less-secured regional warehouses, unsupervised loading docks, and remote truck stops, particularly when vehicles remain stationary for prolonged periods.
To enhance security at warehouses, forwarders can use tamper-proof locks, reinforced security doors, security grilles on windows, and bright, motion-activated lights. Loading docks can be similarly fortified with continuous monitoring by cameras equipped with night vision.
Customs and Regulatory Challenges
During the holiday season, high volumes of imports and exports lead to longer processing times in European customs departments. Delays are especially prominent in countries like Germany, France, and Italy, with strict import regulations. These delays often occur due to documentation errors, as customs authorities rigorously check for compliance with safety regulations and tariffs. Additionally, delays can arise from regulatory updates and subsequent periods of adjustment where both customs officials and forwarders adapt to new requirements.
Building relationships with customs officials is also important for efficient processing. The use of experienced customs brokers can be helpful, especially in countries where strict EU trade and safety regulations apply. This approach simplifies navigating customs procedures and ensures prompt clearance of goods.
Impact of Winter Weather on Logistics
Adverse winter weather often disrupts transportation during Europe’s holiday season. Snowfall in the Alpine regions affects countries like Switzerland and Austria and can block major trucking routes. Dense fog in northern countries, including the Netherlands and the UK, may disrupt port operations and delay sea freight.
Freight forwarders can respond by using predictive analytics for route management, increasing inventory buffers at key locations, and prioritizing rail for critical shipments. These measures, along with detailed contingency plans, help maintain timely deliveries amidst the seasonal surge in demand.
