The changing landscape of logistics and economy

Welcome to the second edition of infoLogistics – a weekly newsletter by Intermodal&Logistics Magazine.

We have a lot of news to unpack for this week, and we chose just a few, with a big impact in transforming the logistics landscape at a micro and macro level.

Firstly, the European Commission adopted a new proposal on combining transport modes for more sustainable freight. The proposal updates the current Combined Transport Directive and completes the?Greening Freight Package.

The proposal sets Member States a competitiveness target to reduce by at least 10% the average door-to-door cost of combined transport operations within 7 years and requires them to put in place the policies needed to achieve this.

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On another note, the Executive Board and the Supervisory Board of HHLA Hamburger Hafen und Logistik AG gave the OK for the MSC offer to acquire a substantial 49% share in HHLA, despite labour unions advocating against the acquisition.

MSC Mediterranean Shipping Company signed a binding preliminary work agreement with the City of Hamburg, through which they agreed to provide €450 million for?investments in business operations?over the next few years following the closing of the transaction. Another important agreed upon is the neutrality and independence of HHLA’s business model, in particular of the intermodal subsidiary Metrans and that the Hamburg-based logistics company retains the decision-making authority over its investment planning.

Thus, the largest port in Germany will become a global hub for the largest shipping company in the world.

The European road freight index by Upply x Ti x IRU shows that contract rates rally as spot rates continue to fall.

In short, this is what the situation looks like:

• The Q3 2023 European Road Freight Spot Rate Benchmark Index stood at 125.4, 1.2 points lower than in Q2 2023 and 14.8 points down y-o-y.
• The Q3 2023 European Road Freight Contract Rate Benchmark Index stood at 128.1, 1.4 points higher than in Q2 2023 and now just 0.4 points down on Q3 2022.
• Toll price increases in Germany in December could increase toll costs by up to 83%, an increase which will likely be passed on to customers.
• New forecasts from IRU shows driver shortages across Europe are expected to worsen again, with 11% of job opening expected to remain unfilled in 2024.
• Freight rates are expected to remain subdued but with a slight seasonal uptick in Q4. However, rates are expected to stabilize in 2024 as European demand recovers and higher costs, especially from tolls, kick in.

And another important aspect to mention, for the Romanian economy at least, is that according to the 9th Confidex business confidence index, by Impetum Group the new fiscal measures harm managers’ confidence in the local economy.

The survey results show that in the second half of 2023, managers anticipate more pressure on their companies' bottom line. The decrease in confidence is attributed to the new?fiscal measures?and expectations of a slowdown in the national economy.        

Other concerns among Romanian entrepreneurs for the next six months, according to the study, include the lack of working capital and cash flow (15% of respondents, significantly up from 5% at the beginning of the year), rising raw material and utility costs (12%, up from 9%), declining sales, fewer customers and orders (28%, slightly up from 27% in the first half of the year), and the labour shortage (15%, though this is down from 27%).?

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As always, if you have any suggestions for subjects you would like to learn more about in this newsletter or on our website, please let us know! We are always happy to get your feedback!

You can read more news on logistics, supply chain, and transport on our website www.intermodal-logistics.ro.