Forwarders face margin squeeze as growth cools and disruption persists
The global freight forwarding market is still growing, but the industry’s easy gains appear to ...
Supply chain leaders are bracing ahead of advance negotiations due to begin in Saudi Arabia today to bring an end to the Russia’s war against Ukraine.
Responding to news that presidents Trump and Putin would at some time be meeting, Ti CEO John Manners-Bell suggested any peace agreement could help alleviate some of the strain on Europe’s beleaguered road freight sector.
He said: “Europe’s driver shortage will be helped by the gradual return of Ukrainian transport workers, supporting German and Polish industries in particular. Cross-border transport links will also return, providing a boost to international haulage.”
However, others who have spoken to The Loadstar are reticent on the state of play, should agreement between Russia and the US be reached, many pointing to the omission of Europe and Ukraine from early talks.
On whether a deal could help Europe’s haulage sector – suffering from decades of driver shortages– one source said it was too soon to make a prediction, noting that there were multiple Ukraine-related factors to consider.
European Shippers Council secretary general Godfried Smit also said it was “very difficult” to speculate, but stressed the lifting of sanctions on Belarus and Russia would be crucial, adding it would also depend on the EU perception of any deal.
Mr Smit told The Loadstar: “If the sanctions are lifted, we expect some trade with Russia to come back. We should keep in mind the Russian economy is relatively small.
“For transport, it would probably have an effect on the solidarity lanes. Nowadays a lot of Ukraine grain is exported by barges. Gradually the ports in Ukraine will be probably reopened. Also, the silk road (northern corridor) could be restored.”
Airfreight could also receive a boost if a deal is reached, with Mr Manners-Bell expecting the lifting of airspace closures for European and Russian carriers.
The Ti chief executive said Europe’s airlines had lost ground against those from China, which, as a consequence of the country’s strong standing with the Putin regime, had been unaffected.
Mr Manners-Bell added that some European and UK carriers had even been forced to cancel certain routes to Chinese destinations, in turn forcing air cargo rates up amid the loss of capacity.
“If a deal is negotiated, it is probable that the bans on over-flying will be swiftly removed, however, that’s not to say airlines will return quickly to routes which have been dropped,” he continued, and warning that China’s own economic weakness may delay service returns.
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