CargoON

Despite all the constraints associated with the functioning of supply chains in the agro sector, the value of Polish exports of food and live animals is growing.🐄 Polish products go to the European Union market, but also increasingly to Asian markets, to Egypt, Jordan, the United Arab Emirates, and Saudi Arabia.🚢 It turns out that the value of exports in 2022 was 47.6 billion euros, a quarter higher than the previous year.📈

However, the distribution of products at high temperatures remains a challenge for the agro-industry. Access to refrigerated containers is no longer a problem, but exporters also need to ensure the quality of the goods during distribution in destination countries such as Colombia and Costa Rica.📦✈️

Deliveries in the here and now, as well as the availability of products throughout the year, are becoming increasingly important.⏳ Importers from African or Asian countries expect high-quality fruit not only when they are loaded in Poland, but above all when they are traded in the destination country.🍎 And this costs money and requires additional investment in quality," explains "Rzeczpospolita" Paulina Kopeć, secretary general of the "Fruit Union" association.

Agro-producers are aware that distribution is the most important element of the food supply chain, and when exporting outside the EU, this is a new challenge for supply chains.🌐🛒

Polish producers export primarily fruit and dairy products, and these are products that require the right temperature, especially during transport in so-called warm countries.🍓 The sector is favored by lower transportation costs, which is of considerable importance with rising production prices.

This is because not only sea freight prices are falling, but also trucking. For fruit producers, exports seem to be the only salvation for declining demand in Poland.🍏🇵🇱 - The past season was one of the first when some fruit remained on the trees, as there was a shortage of seasonal workers to harvest at acceptable costs, comments Paulina Kopeć of the "Fruit Union".

Although managers of production and distribution companies all over Europe declare that they are automating their transport processes, in practice, it can be different.😕 Even such basic tools as Tracking and Visibility are by no means standard in every company.🚚👀

As a result, entrepreneurs most often do not know where the ordered goods are or wait for hours at the ramp for unloading.😓 Although the European Road Transportation Survey report shows that nearly 60% of carriers already provide the GPS position of the truck at the customer's request, in practice, the use of the Visibility service is low. It is difficult to understand why this is happening.🤔

Asked by the pollsters of the Trans.info portal, representatives of Polish carriers mentioned the benefits of using Visibility tools. They pointed to a reduction in unnecessary kilometers and route control, better management of resources, savings in fuel combustion, and the possibility of calculating the ETA, i.e. the estimated driving time.🚛 Tracking the route of goods saves time for both the carrier and its customer. Knowing about delays, the shipper can, for example, plan the work of the warehouse in a different way, avoid blocking the dock unnecessarily, etc.🏭

Even simple real-time tracking tools mean savings and less stress for everyone in the supply chain.😌 Although managers in many industries and owners of transport companies seem to know about these benefits, the use of Tracking and Visibility tools in the EU still leaves much to wish for.😔 However, it is optimistic that, according to experts, the global market for tracking systems is currently growing by more than 13% per year.🌍

In practice, however, it is only used 15-25% in European supply chains.📉 This is still not much.😕

An increasing number of European countries are considering banning drivers from unloading and loading goods.🚫 For nearly two years, such a ban has been in place in Portugal, for example, and since September 2022, a royal decree has also introduced a similar ban in Spain.🇵🇹 🇪🇸

Today, the French Ministry of Transport is also considering similar legislation. 🇫🇷 This is one of the topics within the negotiation package related to improving the work of drivers.💼🔧 "We are in favour of better legal regulation of the conditions under which loading and unloading operations are carried out" - says Jean-Marc RIVERA, general delegate of the French transport organisation OTRE, which has been fighting for better working conditions in the transport sector for years.💪

The topic is not new, as with a shortage of drivers in Europe, freight organizations and transport ministers are considering how to improve driver comfort.🚚 The situation is dramatic, because last summer, for example, the UK government had to ask for help from the military to distribute food and medicine.🇬🇧💂‍♂️

Unfortunately, it is still common to see drivers on unloading docks supporting - against their duties - the work of the warehouse.😕📦 This is indicated by a recent study by the Truckers Life Foundation, which looked at the working conditions of Polish drivers, and Poland, as is well known, is a leader in European trucking.🚛🇵🇱

Transportation companies and large multinationals have formed the Trucking Collaborative Platform, which wants to develop standards for driver service. BMW Group, IKEA Supply AG, and Scania and Volkswagen, among others, have joined the platform.🚛🌐

But it's also about changes at the legal level. The aforementioned French transport organization OTRE Ile-de-France is negotiating with the government to introduce penalties for shippers for downtime at loading docks.⏰💸

French carriers would also like to see the loading, chocking, securing, lashing, and unloading of goods to be the responsibility of shippers/consignees and carried out under their responsibility.📦🔒💼

📣 Europe and the United States have been making intensive efforts in recent months to become independent of microprocessor production in the Far East. This is because, until now, global chip production has been concentrated in Taiwan, South Korea, and China. As a result of the pandemic and the disruption of supply chains, Western countries were forced to reduce industrial production because there was a shortage of processors used, for example, in the manufacture of trucks.🌍🇪🇺🇺🇸😊

Today, the European Union is finalizing the European Chips Act, and US Intel Corporation is undertaking further giant investments in Germany and Poland. Germany's share in the production of microprocessors is about to increase further, thanks to Intel's planned investment in Magdeburg. This is because the American giant will invest close to 33 billion euros in a factory for so-called silicon wafers, for which it will also open a plant near Wroclaw in Poland.💸💪

What does the European Chips Pact provide for? The initial agreement between the European Parliament, the European Commission, and the Council of the European Union envisages a doubling of semiconductor production by member states by 2030. Currently, the EU's share of the global microprocessor market is 10%. The preliminary assumptions of the European Chips Act assume public-private investment of €43 billion, including some EU funds, not only for developing production but also for research work. Germany remains the European semiconductor leader with exports of EUR 28 billion, while the Netherlands and France are also significant producers.📈💰🤝

As Intel CEO Pat Gelsinger argues, Intel supports the European Union's goal of regaining 20% of global semiconductor production capacity by 2030 and is investing in a global semiconductor supply chain that is resilient and geographically balanced. US corporations are steadily increasing their chip market share, and the US government has passed the Chips and Science Act, Europe's corresponding European Chips Act.🌐🤝

Manufacturers and distributors from across Europe want rapid change leading to the implementation of the European Green Deal and the achievement of zero carbon. A group of global companies has sent an official letter to the European Parliament and the Environment Ministers in EU member states on this issue. The companies want truck transport to become fully green sooner.🟢 Companies such as Nestlé, Nike, Oatly Group, PepsiCo, and The HEINEKEN Company, as well as several logistics operators, among others, have signed the appeal to the MEPs.👥

The signatories of the letter want the carbon footprint of trucks to be reduced from 55 to 65% by 2030, the end of the first phase of the European Green Deal. This will allow an additional 150,000 lorries to be placed on the market with a green drive - electric or hydrogen. The idea is therefore to modify the rules of the Fit for 55 climate package. The authors of the appeal to the European Parliament also called for a clear date after which no conventionally powered trucks will be allowed on the roads. The companies signed up to the letter believe that accelerating the change will reduce costs in the supply chain and ensure true zero-carbon by 2050.♻️🚛🌍

However, not everyone shares the enthusiasm and arguments of global gigs. Doubts are multiplying about the preparedness of European economies, not just trucking, to achieve climate neutrality in 2050. The German automotive industry organisation VDA, for example, believes that tightening climate targets is simply unrealistic. This is because the production of zero-emission trucks requires too complicated technological changes and long lead times. Raluca Marian of The International Road Transport Union (IRU), on the other hand, expresses doubts as to whether an adequate number of truck charging points will be built in time.🔌🚚

Despite the challenges, the push for greener transportation remains crucial for a sustainable future.🌏 The cooperation between companies, governments, and organizations is essential in achieving the ambitious goals set forth in the European Green Deal.🤝💚

It is important to address concerns and find innovative solutions that facilitate the transition to zero-carbon trucking.⚡️🚛 By embracing new technologies and investing in infrastructure, we can pave the way toward a cleaner and more environmentally friendly transport industry.🛣️💡

The queue of trucks waiting to unload grain and oilseeds is growing at Polish ports.😩🚚 Poland is now a major grain transshipment hub, from where these products continue to European markets: Germany, Belgium, the Netherlands, the UK, and Scandinavian countries.🚢

The waiting time for unloading can be as long as 10-20 hours.⌛️ Managers of transshipment terminals at the port of Gdansk have prepared special tents to accommodate more grain.🏭

As Monika Piątkowska, president of the Grain and Feed Chamber, explains, urgent investments of a structural character are necessary - both in ports, but also in warehouses and transport. Today, we estimate the real capacity of Polish ports at about 750,000 tons per month, which significantly limits the ability to empty silos. Last year, only the port of Gdansk handled 1.9 million, and tons of grain, and now - due to the emptying of warehouses with Ukrainian grain - there will be even more grain, Piatkowska adds.📈

Supply chain experts point out that too few grain and agricultural products are transported by rail in Europe.🚂 Meanwhile, intermodal transport could significantly ease the burden on trucking.🚢 In the European Union, only Germany is trying to transport some bulk products - including grain - by rail in significant amounts.

Deutsche Bahn has created, with the help of its subsidiaries in Poland and Romania, a rail "grain bridge" that facilitates the transport of Ukrainian grain to the German ports of Rostock, Hamburg, and Brake near Bremerhaven.🚆🌾

The problem of crossing the Brenner Pass, one of the most important transport routes in Europe, is growing. The government in the Austrian Tyrol is introducing new restrictions on truck traffic every now and then, affecting Italian and German carriers the most.😔

However, the long congestion when crossing the pass has a negative impact on transportation throughout Europe. Recently, queues at the pass, which is the most convenient connection between Italy and Germany, have reached almost 70 kilometers.😱 Even the European Commission has become involved in the matter, and the Brenner was discussed heatedly during a meeting of the Transport, Telecommunications, and Energy Council.💼💬

Unfortunately, the European Commission has no idea how to solve the problem. The conflict over traffic restrictions on the pass could be exacerbated if the Austrians introduce a mandatory reservation system for trucks. Such an idea is criticized not only by the European Commission, but even by Austrian transport organizations.😕 - The proposed system will not reduce truck traffic through the Brenner Pass, but will cause even more traffic jams and thus higher carbon dioxide emissions.

This is because no one can tell exactly when a truck will arrive at the border. What happens if the truck arrives early or too late?😡 - comments Alexander Friesz, president of ZV Spedition & Logistik.

Experts, including ZV Spedition & Logistik, believe that the solution to the huge congestion at the pass is the opposite of the measures proposed by the Austrian Ministry for Climate Protection. Even the lifting of the night traffic ban could help increase transport capacity on the pass. At the meeting of the aforementioned Council, the Italian Transport Minister asked the European Council and the EC to intervene in the Brenner case. He was supported by the transport ministers of Germany, the Czech Republic, Romania, the Netherlands, and Bulgaria, among others. 🙏 - The driving bans have caused huge traffic jams.

Queues reach 70 kilometers, and vacations are just around the corner. "This is an unacceptable situation, not to mention the carbon emissions" sums up Raluca Marian, EU Advocacy Director at the International Road Transport Union. 🚦🚚💨

💡 Although Germany is currently in a state of shallow recession, having recorded negative economic growth for two consecutive quarters, the economic signals from across the Rhine tend to encourage optimism.🤔

The German statistics office Statistisches Bundesamt, Destatis has just published trade balance data for this largest European economy. And it appears that the German economy is waking up from its long lethargy. Indeed, Germany is steadily increasing its trade surplus, which amounted to 18.4 billion euros in April, compared to 14.9 billion in March. German exports grew by 1.2% and showed signs of recovery.📉📈

This is good news for the European economy as a whole, as Germany is its driving force. Data published by Destatis also shows that the German economy is slowly becoming less dependent on Chinese suppliers and is importing more products from Central and Eastern Europe, especially Hungary, the Czech Republic, Poland, and Romania.🚛

This shift in trade patterns is further positive for Europe, considering the economic unpredictability of the Chinese market in recent years due to the pandemic and the war in Ukraine. In fact, German imports from China fell by as much as 28.5 percent in a year-on-year comparison, while imports from Russia dropped by more than 90 percent.🌍🛒

💬 Using Germany as an example, it is clear to see how economic priorities and trade directions are changing in Europe. The increase in German exports owes most to the recovery of the automotive sector, with German car exports rising by as much as 21.1% in April compared to last year's figures.

This growth in exports also has a positive ripple effect, leading to increased activity from foreign sub-suppliers. For instance, Polish companies are supplying car manufacturers with batteries for electric cars, contributing to the overall expansion of the industry.🚗⚡

🎉 We are happy to announce that CargoON will be part of the next edition of SIL Barcelona, the Leading Exhibition for Logistics, Transport, Intralogistics and Supply Chain in Southern Europe. During the event we will be presenting our easy-to-use plug and play platform that covers the entire supply chain from start to finish. 📍

🔥 Not the end of good news, we will also take part in the 26th edition of Eurolog, the annual congress of the European Logistics Association.

Here is our agenda for these days in Barcelona:
🟢 CargoON’s participation in Eurolog
📆 7/06/2023, 10:30-10:50
Piotr Roczniak, Head of Business Consulting and Data at CargoON, Trans.eu Group
Congress accreditation required: www.cel-logistica.org
Use the code 6DXCPJQT to get €50 discount

🟢Press Room
📆 7/06/2023, 13:00
Presentation of CargoON’s launch in the Spanish market for press and partners.

🟢Ágora Talks
📆 8/06/2023, 12:00-13:00
Join us for this CargoON & Trans.eu Group talk how technology can help optimise process of loading and unloading through efficient time slot management, Dock Scheduler.

If you don't already have a SIL ticket, download it for free here 👉
https://lnkd.in/dRxAwnv9

For more information 👇👇👇
https://lnkd.in/dA2kr68u

📣 Although it is hard to believe, there are many signs that, despite the year-long war in Ukraine, supply chains are starting to operate normally again.😊 Well, maybe not quite normal, but some signs of improvement are visible.

According to the latest data from the Opendatabot think tank, there are now 1.2 million large companies operating in Ukraine, and more than 2 million small and medium-sized ones.✔

What sounds optimistic is that the number of companies being set up is five times greater than the number of companies closing down. Symptoms of economic recovery obviously have quite an impact on the work of supply chains.😃

The figures just quoted are for the period 1 April 2022 - 1 April 2023. And the trend in new business start-ups (especially the smallest) is upward. However, in order for the supply chains in the European direction and in the eastern direction (from the European Union) to work normally, a rapid recovery of Ukraine is necessary.🤔

As calculated by Allianz Trade in turn, 150-200 billion euros of private investment (in infrastructure, healthcare, digital and energy security, among others) are needed for the country to return to normality.💪

Also, good news for international supply chains is the economic performance of China, which has apparently not been hurt by the conflict in Ukraine. China's National Bureau of Statistics has just reported that economic growth there was 4.5% (year-on-year) in the first quarter of 2023.📈

This is quite a lot more than expected. Experts believe that this is mainly due to the lifting of drastic restrictions related to the pandemic.🌟

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Economists are confused by the latest Index data, which records the investment sentiment of the economy.😕 They show that the economic recovery in Europe is gaining momentum.📈

The problem, however, is that the market data are ambiguous.🤔 Although the index has risen above the magic 50-point mark(54.4), the slowdown in manufacturing continues to deepen.📉

Although, as Reuters reassures, supply chains have not collapsed, there is a growing gap between the rapidly growing service sector and the manufacturing sector.💼

Dr. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank among others, points this out. At the same time, the expert adds that, despite all the discrepancies, the Index shows a ''very friendly overall picture of the European economy''.😃

The Index surveys the mood of purchasing managers for their companies.😊 The Purchasing Managers Index shows the activity of managers who purchase various goods and services in the market.🛍️

It is assumed that an Index value above 50 points indicates economic growth and heralds prosperity, while a value below this indicates less market optimism and shrinking purchases.💰 The published results refer to the euro area.🌍

We would add that the March results were also encouraging.👍Eurozone economic activity growth accelerated to a 10-month high in March, another sign that the economy is recovering from last year's declines.💪 Inflationary pressures continued to ease, and the industry even saw a sharp drop in costs, experts wrote in the S&P Global report.💹

Supply chain executives also confirm a modest recovery, but advise holding off on excessive optimism until at least the end of May.⏰

The deadline for the introduction of the electronic consignment note (e-CMR) is fast approaching!🚛⏰ Meanwhile, the International Road Transport Union (IRU) is warning that 19 countries (out of 26) have so far ratified the introduction of the e-CMR, and the practice of its use is far from ideal.😕 What are the obstacles to the widespread introduction of e-CMR?🤔

Currently, one of the main obstacles to the use of e-CMR is the lack of interoperability between the parties to the service.🤝💻 The technology used by different providers does not always ensure communication between different systems. But the introduction of eFTI will make interoperability mandatory, comments IRU's Raluca Marian, Director of EU Advocacy.💡

To the IRU's knowledge, there is a lot of uncertainty among haulers and shippers about which countries allow and accept electronic waybills.📄👀 And also whether road transport inspectors will treat the electronic waybill similarly to the paper waybill during inspections.🚔

However, as Raluca Marian explains, the e-CMR regulations are very clear on the latter point. If an e-CMR is issued in a country that has signed the e-CMR protocol, the country where the service ends must accept the document. This is the case even if the country has not yet ratified the protocol.✅ An important challenge with the use of the e-CMR - as yet unresolved - remains the issue of the confidentiality of the data made available in the system.🔒

It is not yet certain what the public administration will be able to do with the data received, says Raluca Marian. - The eFTI regulation will only establish clear rules on this matter.📜

Until this happens, many companies are reluctant to share data with control authorities. This is because the data to be shared is often commercially sensitive, he adds.💼

💡 Work is progressing on the implementation of the electronic road transport information (eFTI) system in the European Union countries. With the full EU-compliant introduction of the electronic consignment note (e-CMR) by EU countries, all information related to international transport will be in the digital space.

🔈 According to participating legislator Raluca Marian of the IRU, Director of EU Advocacy, the eFTI framework will be fully applicable from August 2025. - The first implementing acts are expected this summer. Originally, the first two documents were due at the end of February, but the whole process has been delayed, she comments.

🚚 The aim of the eFTI implementation is to simplify and speed up procedures in international . The eFTI regulation has already been adopted on 15 July 2020, and the process of preparing to implement acts and detailed guidelines is currently underway. The result is to be a platform for the exchange of data related to road operations. Among other things, the platform is to be used for the exchange of information between companies and government administrations regarding transport compliance with EU regulations.
As Raluca Marian of the IRU adds, the eFTI provisions do not, for the time being, cover the roadworthiness of a vehicle or compliance with the rules on the posting of workers. (The latter relate to the provisions of the Mobility Package).

💻The eFTI platform will also enable tax settlements with the tax authorities, but the entrepreneur must have the appropriate identification tools. This will also require the taxpayer to adapt his IT tools to the eFTI environment. This is because the platform assumes the interoperability of systems cooperating with eFTI, so that the exchange of information between the company and the public administration will run smoothly.

There is good news coming out of European markets regarding gas prices. 🎉🌍 All indications are that European stocks have not run out over the winter season and that storage facilities are still full. 💪🏼

On the Dutch short-term contract market, the price per megawatt hour has just dropped below €40.💰 This is the lowest level since August 2021.📉 The drop in gas prices will certainly please continental suppliers, transporters, and the entire supply chain. 🙌🏼💼 And, of course, consumers.

In the long term, it could stop costs from rising for producers and distribution companies.💡

The scale of the price drop is best demonstrated by the fact that, following the outbreak of war in Ukraine, prices skyrocketed reaching up to €300 per megawatt-hour (MWh) on exchanges.💸💥

Experts believe that the price of gas could continue to fall.📉 - Taking into account the cost of processing the liquefied gas we are currently importing into Europe, I expect that the price of this raw material will soon fall to as low as €30 per megawatt-hour, says Professor of Economics Machiel Mulder from the University of Groningen.📈

Fearing - and rightly so - the drastic consequences of stopping gas supplies from Russia, European governments have started importing LNG in large quantities.💨💼 Storage facilities filled up, the winter turned out to be mild and the Old Continent probably avoided a large-scale energy crisis.🌡️🔥

Indeed, according to the latest data from Gas Infrastructure Europe, European storage facilities are around 65% full.📊 However, experts warn that the market may not immediately feel the drop in crude prices, as investors will want to get rid of stocks purchased at much higher prices.🚨 - Buyers pumped gas into the system in the summer fearing that crude prices would be higher in the winter, but this did not happen, says Sindre Knutsson, Vice President of Rystad Energy AS.🌞🌡️