ELA’s position on the current challenges in the sector
The ELA (European Logistics Association) in a recent statement states that the European supply chain logistics and transport system is being tested by the health crisis.
The current pandemic scenario that Europe is facing outlines some fundamental characteristics of European supply chains and the professionals working in them.
ELA affirms that the globalized economy, with a high degree of division of production activities worldwide, is itself a source of vulnerability for the European economy.
Most large international companies know where they can find the products they need and generally operate without the need for high safety stocks.
This way of operating works for normal fluctuations in demand and supply but does not consider exceptional situations.
In addition, members of the supply chain have previously demonstrated their ability to adapt to challenges on many occasions.
Therefore, logistics is proving that it is a decisive factor for the European production system currently. In countries like Italy, France and Spain, many executive functions, planning and support functions have quickly adapted to work from home, following the recommendations of European governments.
Transport and storage services are operational in all European countries, even in those cases where operations are becoming increasingly slow and difficult to maintain.
Delays and cancellation of deliveries cause problems for 66% of German companies and at least 28% of Italian companies.
Road transport and intermodal transport are key elements of the European supply chain. Although there was an increase in demand at the beginning of the crisis, the main road transport trade associations estimate a short-term drop of 25% to 30% in activity from normal levels, due to the drop in demand and difficulties in international transport resulting from increased border control and health controls, which in some cases generate queues of tens of kilometers.
Air transport and urgent logistics by air have also been severely affected.
For all these reasons, the European supply chain and logistics are facing a delicate moment and ELA is proposing a series of measures so that the sector can continue to move forward, such as access to liquidity for those companies that need it and maintaining the policies of sustainability that were planned.