One of the most pervasive and critical issues impacting freight forwarding across nearly all European nations is the acute shortage of skilled labor, particularly truck drivers, but also extending to warehouse staff and customs specialists. The International Road Transport Union (IRU) estimates a significant driver deficit across the EU, with many countries experiencing record shortfalls.
This shortage is exacerbated by an aging workforce, coupled with a struggle to attract younger talent due to demanding working conditions, long hours, and a perceived lack of appeal. While the European Commission has recognized these shortages and is looking at vocational training and skilled worker mobility, the immediate impact on freight forwarders is significant: increased operational costs (due to higher wages and incentives), extended transit times, and a constant pressure on service reliability.
As Europe's largest economy and a central logistics hub, Germany faces its own set of challenges. While it has seen some stabilisation in road freight volumes compared to earlier downturns, the industry is still impacted by fragile freight rates amidst a high-cost environment. Regulatory changes, particularly those related to sustainability and emissions, continue to add to operational expenses for hauliers and, by extension, freight forwarders.
The national driver shortage also hits Germany hard, leading to similar issues of increased costs and capacity constraints for German road transport services.
In Eastern Europe, the ongoing conflict in Ukraine and its wider geopolitical ramifications continue to severely impact freight forwarders. The suspension of logistics services to and from Ukraine and Russia has forced a complete rerouting of traditional trade lanes, leading to:
Countries like Italy, Spain, and parts of the Balkans, while benefiting from strategic maritime access, often contend with varying qualities of road and rail infrastructure. Port congestion can be an issue at major hubs, particularly during peak seasons or due to unforeseen disruptions. The reliance on specific types of cargo (e.g., agricultural products from Spain, fashion from Italy) can also create seasonal peaks and troughs in demand that require flexible capacity management from freight forwarders.
Across the entire continent, freight forwarders are grappling with new EU-wide regulations, which, while well-intentioned, add complexity and cost:
The push for the green transition also means increased investment in alternative fuels and greener technologies, costs which are often passed down the supply chain, impacting overall logistics costs.