What H.Essers does to tackle today’s logistical challenges
Transport costs worldwide are under enormous pressure due to a combination of health, climate and supply chain challenges. These factors influence an already turbulent transport market, and prices too. By focusing more than ever on customised solutions and smart investments, we want to tackle the current challenges, creating new opportunities for our customers. Hanno Reeser, Senior Sales Manager Ftl Synchromodal,, is happy to explain.
“We are indeed going through a challenging period. A time when various trends, either globally or regionally, will have a strong impact on the market,” says Hanno Reeser. “A number of factors are obvious. Just think of the general driver shortage, which is rising to 400,000 drivers in the European Union, the sharp increase of 24.5% in fuel costs, the Brexit, new collective wage negotiations and a growing scarcity of raw materials resulting in a 25% price increase for our fleet and loading units. At the same time, an imbalance has occurred in international container flows, mainly due to Covid, resulting in a shortage of containers in China and too many standstills in our area and a container price that is almost twice as high.. It will take time to bring them back into balance. In addition, the capacity index is at an all-time low, with a drop of -4.5% compared with last year and the European wage indices have risen by 4.5%-9% in two years. On top of these changes, the European Parliament also approved the new Mobility Package, which has many organisational consequences for transport companies and therefore also for their customers. We’re also seeing how the market is picking up much faster than during the economic crisis of 2008-2009, when it took several years for the market to reach the same level as before.”
All these factors together influence supply chains worldwide. “And therefore also the cost of transport. Just to give you an idea, the price of transporting a container overseas has increased sevenfold in recent times.”
Nevertheless, at H.Essers we do not want to wait and see how we can tackle the current logistical challenges. “First of all, we try to keep cost increases for our customers to a minimum. In addition, we realise that as an asset-based company, we must now, more than ever, focus on further expanding our infrastructure, containers and fleet. All this, in order to respond to our customers’ needs more than ever and continue to create far-reaching customised solutions for them. With the further development of our Driver’s Academy and a well-considered recruitment policy, we are once again putting our back into the driver shortage in our sector.
In order to provide a solution to the unprecedented increase in congestion, we will continue to fully deploy our sustainable, intermodal network, both within and outside Europe. A good example is the expansion of our rail network to and from China. Or the train connection between Genk and Duisburg, which also provides a better connection to other European countries. By focusing more on railway and inland waterway terminals, we have a positive impact on traffic congestion problems in Europe as well.”
It will take time for this situation, a combination of health, climate and supply chain challenges, to be resolved. The only way out is to work together constructively. “That is what we are trying to do as much as possible, with a positive and creative view of the future. We are convinced that our investments will definitely pay off in the long run and also lead to new opportunities in our customers’ supply chains, both in terms of sustainability, efficiency and service. In this way, we will continue to be a stable and innovative partner, even in this turbulent market.”