Scope of Retail Logistics Solutions

Modern retail-logistics programmes extend well beyond the movement of goods from A to B. They bundle a wide variety of specialist capabilities that can be offered in-house, through third-party logistics providers, or in collaborative mixed-networks. Key solution types include:

• Inbound supplier management and purchase-order tracking – real-time visibility of manufacturing slots, sailing schedules, and ETAs into distribution centers.
• Automated warehousing and fulfillment – automated storage and retrieval systems (AS/RS), goods-to-person shuttles, autonomous mobile robots, and vision-guided sorters that shrink pick-to-ship lead times.
• Cross-docking and trans-shipment hubs – rapid turn-arounds that bypass storage, ideal for fast-moving promotional stock or temperature-controlled groceries.
• Value-added services (VAS) – kitting, labelling, price-tagging, gift-wrapping, or light final assembly that personalise product for specific stores or campaigns.
• Multimodal transportation and carrier orchestration – dynamic routing across parcel, pallet, rail, road, and short-sea options, chosen for cost, speed, or carbon intensity.
• Last-mile and micro-last-mile delivery management – integration with parcel lockers, in-store click-and-collect, same-day couriers, and two-person delivery for oversize items.
• Reverse-logistics and refurbishment loops – systematic capture, grading, repair or resale of returns to protect margin and reduce waste.
• Temperature-controlled and specialty flows – dedicated chains for chilled, frozen, hazardous or high-value merchandise, often with GDP or TAPA certification.
• Omnichannel and micro-fulfilment node design – store-backroom or urban dark-store automation that brings stock within single-hour delivery radius.
• Sustainability and carbon-tracking modules – analytics dashboards that allocate Scope 3 emissions at SKU or shipment level and feed CSRD disclosures.
• Data and inventory-optimisation platforms – AI forecasting, demand-shaping and distributed order management that balance on-hand stock against service-level promises.

Digital Transformation and Automation

Automation is the chief differentiator today. Europe’s warehouse-automation market was valued at USD 5.95 billion in 2024 and is projected to grow at more than 15 % CAGR through 2034 as robotics and AI orchestration replace manual tasks. Parallel investment is pouring into micro-fulfilment: analysts size the global MFC market at USD 6.2 billion in 2024, rising to USD 31.6 billion by 2030. In practice this is driving a wave of compact, automated nodes inside European cities, allowing grocers and fashion chains to promise one-hour click-and-collect or delivery windows even in congested urban cores.

Sustainability Pressures and Green Logistics

Regulation is moving as fast as technology. Under the EU Corporate Sustainability Reporting Directive (CSRD), around 50 000 companies must quantify and publish Scope 3 transport emissions for fiscal years beginning 2024. Retailers must also prepare for the EU Deforestation Regulation, whose core obligations for medium and large traders now start on 30 December 2025 after a one-year delay agreed in October 2024. Progress is visible on the ground: International Forwarding Association (IFA) member CTS Group converted its Dutch road fleet entirely to renewable HVO100 diesel in January 2025, cutting well-to-wheel CO₂ by up to 90 %. Similar momentum is evident in eco-designed packaging, modal shifts to rail, and granular carbon dashboards embedded in transport-management systems.

E-commerce and the Last-Mile Challenge

The last mile remains the costliest leg. Europe’s dedicated last-mile delivery market generated USD 30.2 billion in revenue in 2023 and is trending toward USD 54.9 billion by 2032, a CAGR of roughly 8 %. Automation is moving onto pavements and into the air: one European sidewalk-robot fleet surpassed 8 million autonomous deliveries in spring 2025, while a Dublin-based drone network has already logged 200 000 flights and plans to cover one million residents before year-end 2025. City authorities are responding with new curb-management rules and quiet-flight corridors that balance convenience with noise and safety concerns.

Regional Infrastructure Trends

Logistics performance still depends on physical corridors. Since mid-2024 the EU has folded its eleven Rail Freight Corridors into the broader European Transport Corridors under the revised TEN-T regulation, aligning capital spending and slot allocation to support modal shift from road to rail. Consultancy forecasts suggest an additional USD 8.36 billion in rail-freight revenue between 2024 and 2029 as new 740-metre-train sidings and automated port-rail interfaces come online. One emblematic project is Romania’s approval of 750 million lei (~€152 million) for new rail links into the Black Sea port of Constanţa, a critical outlet for grain and retail imports alike since disruption of traditional Ukrainian routes.

IFA partners are embedding these trends in their service portfolios. Across the association, members are investing in AI-enabled booking portals, bonded omnichannel hubs near major airports, and collaborative line-haul networks that let independent forwarders pool volumes while meeting the tighter emissions thresholds now written into EU law.

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Core Principles of Lean Logistics

Lean Logistics builds on several mutually reinforcing pillars:

• Systematic waste elimination. The classical “seven wastes” (transport, inventory, motion, waiting, over-production, over-processing, and defects) provide a clear checklist for identifying inefficiencies in freight networks, cross-dock hubs, and last-mile routes.
• Value-stream mapping and flow. End-to-end visualisation of consignments – from booking through consolidation, line-haul, deconsolidation and delivery – highlights bottlenecks and makes lead-time variability visible.
• Pull-based planning. Replenishment triggers are set by actual demand, enabling just-in-time collection and reducing idle inventory at terminals.
• Standard work and problem-solving. Simple, shared work standards allow teams to expose abnormalities quickly and run rapid-cycle improvements.
• Data-driven visibility. Modern WMS and TMS platforms underpin lean thinking by synchronising dock schedules, giving real-time load factors and supporting dynamic route optimisation – capabilities now considered prerequisites for emissions reporting.

Key Benefits for European Supply Chains

Lean projects typically translate into measurable economic and environmental gains:

• Cross-docking and transloading programmes, now widely adopted as warehouse costs stay elevated, trim inventory carrying charges that account for 12–16% of total supply-chain spend.
• Participants in the pan-European Lean & Green certification scheme enjoy verified carbon savings; the first star alone recognises a more than 20% CO₂ reduction per transported unit within five years.
• Gartner-benchmarked TMS roll-outs regularly cut annual transport cost by 15% and administrative cost by up to 30%, while simultaneously lowering fuel burn through better cube utilisation and fewer empty kilometres.

How Far Lean Logistics Has Progressed in Europe

Regulation and market scale have accelerated adoption:

• Europe’s freight-forwarding market generated USD 58.9 billion in 2023 and is forecast to rise at a 7% CAGR to 2030, giving forwarders the volume base to invest in lean tooling.
• More than 500 companies now follow the Lean & Green “five-star” roadmap, aligning with the European Climate Law’s 55% emissions-reduction target for 2030.
• A 2023 MIT-CSCMP survey found that 53 % of European firms have adopted net-zero goals, the highest regional share worldwide and a clear pull factor for lean, low-carbon logistics services.
• Market analysts value the cross-docking services segment at USD 250.9 billion in 2025, with Europe identified as its fastest-growing region thanks to e-commerce and grocery channels that reward same-day flow-through.

Practical Applications Among IFA Forwarders

CTS Group – the company has embedded automatic route optimisation, network distribution, and driver eco-training within its Benelux hub network. Independent audits confirmed a 30% relative CO₂ reduction, earning the company two Lean & Green stars in 2021 and positioning it for a third star in 2024; since 2020, all own-fleet shipments have been 100% climate-neutral through offsetting and HVO-100 biofuel.

Delamode Bulgaria Ltd – the forwarder’s corporate environmental statement outlines a multi-year carbon-reduction programme that combines efficiency processes, and back-loading strategies. In 2024, Delamode launched an e-CMR pilot, digitising consignment notes ahead of the EU eFTI mandate and cutting paper handling and error rates. Parallel investments in an “Evergreen” WMS and an advanced TMS ecosystem have given customers real-time visibility and enabled leaner order-fulfilment cycles.

Milšped transport i logistika d.o.o. – the company’s 2024 ESG report highlights a strategic shift from road to rail and other intermodal solutions, reducing greenhouse-gas intensity while boosting capacity. In April 2024, Milšped inaugurated a direct block-train service from Hebei (China) to Serbia, showcasing a lean, long-haul flow that bypasses congested EU gateways and shortens transit times for high-volume trade lanes.

These cases show how Lean Logistics, reinforced by European policy and customer demand, is moving beyond theory into daily forwarding operations – delivering faster cycles, lower cost, and credible climate performance without reliance on headline-grabbing brands outside the IFA network.

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Why January 2025 Matters

The so-called “Spec Pack” adopted in January translates the high-level eFTI Regulation (EU 2020/1056) into code lists, data models, and API behaviours that IT systems must follow. From this date Member States can build national eFTI Gates, while the private sector can align transport management systems (TMS) and enterprise resource planning (ERP) tools with the same interface. A follow-up act scheduled for September 2025 will finalise functional requirements for market-facing eFTI platforms and set the official certification scheme.

What Is in the Final Spec Pack

Two legal instruments do most of the heavy lifting:

• Commission Delegated Regulation (EU) 2024/2024 – establishes the eFTI common data set and more than 50 thematic data subsets, each mapped to a specific EU or national legal act (dangerous goods, waste shipments, etc.). Every element is given a unique definition, format and code list reference.
• Commission Implementing Regulation (EU) 2024/1942 – details how competent authorities query, retrieve and validate eFTI data during roadside or terminal checks and how national eFTI Gates must log each access session.

Together, they guarantee that an eCMR consignment, a waste waybill, or a multimodal unit load device record can be exchanged in the same machine-readable envelope, regardless of transport mode.

Mandatory Data Payloads

The delegated act groups the 170-plus data elements into six logical blocks that every eFTI message must expose or reference:

1. Transport References – unique consignment reference (UCR), transport document numbers, transport mode indicator.
2. Actors – legal name, address and VAT/EORI of consignor, consignee, carrier and (when relevant) freight forwarder.
3. Goods & Packaging – commodity description, CN/HS code, dangerous-goods UN number, packages, net and gross mass.
4. Transport Equipment – vehicle registration or wagon/container ID, seal numbers, IMO/ILU or ILN codes.
5. Itinerary & Locations – place of loading/unloading, transit points, border crossings, planned arrival/departure times.
6. Regulatory Declarations – cabotage statement, waste shipment code, phytosanitary certificate ID, customs status.

Only the elements required by the legal act that triggers a control (for example ADR dangerous-goods points) must actually be filled in, but the envelope structure is always the same. This modular approach keeps data exposure to the strict minimum that an inspector needs.

Becoming a Certified eFTI Platform or Service Provider
From September 2025 economic-operator systems wishing to brand themselves “eFTI platforms” must pass a conformity assessment run by an accredited third-party body (a “notified body”) designated by a Member State. The assessment checks:

• compliance with the common data set and subsets;
• implementation of the security and access-control functions defined in the implementing act;
• disaster-recovery and audit-trail capabilities;
• interoperability tests with at least one national eFTI Gate.

Successful platforms receive an EU Certificate of Conformity valid for five years and are listed in a public register managed by the Commission. Service providers (such as freight forwarders running a multi-tenant platform for clients) follow the same path but add proof of organisational fitness and incident-response procedures. Carriers and shippers can outsource to a certified provider or integrate the specs into their own in-house systems, but only certified platforms may expose data to authorities.

Countdown Checklist for Carriers and Shippers

1. Map your paperwork (Q3 2025) – Identify every regulatory document you carry today and match its fields to the eFTI common data set. Pay special attention to ADR dangerous-goods points and waste codes.

2. Choose your platform strategy (Q3 2025) – Decide whether to run your own eFTI node or contract a logistics IT provider that plans to be certified. Ask for evidence of their conformity assessment schedule.

3. Clean your master data (Q3–Q4 2025) – Align product codes, location identifiers, and partner EORI numbers with the code lists referenced in the delegated act.

4. Pilot digital exchanges (October 2025) – Use sandbox connections offered by national eFTI Gates to verify that inspectors can retrieve your data with only a licence plate or consignment reference.

5. Train drivers and dispatchers (November 2025) – Replace the “folder of papers” with a QR code or alphanumeric token that points to the eFTI record. Make sure staff can regenerate the token offline.

6. Go live when authorities open the gate (December 2025) – Keep a small paper fallback for cross-border legs involving non-EU jurisdictions, but within the EU, be ready to show digital-only evidence on demand.

Following these steps will let operators meet the regulation’s late-2025 start of acceptance and glide smoothly toward the full legal obligation for authorities to accept eFTI data from 9 July 2027.

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Rising cross-border e-commerce, stricter sustainability rules, and a chronic driver shortage are prompting shippers to outsource more execution and analytics to external partners. Contract logistics already represents 34 % of total European logistics spend, and its share is still on the rise. In parallel, peak-season parcel volumes are expected to reach 6.2 billion shipments between October and December 2024, 9 % more than in 2023, adding pressure to last-mile networks.

Transportation-based 3PLs – Road, Rail, Sea & Air

Transportation-centred providers focus on physically moving freight and often own sizable truck, trailer or container fleets. One major asset-heavy operator in Europe recently reinforced its groupage network by acquiring a regional road specialist, widening next-day pallet coverage in Southern Europe. The same company is piloting battery-electric long-haul routes in collaboration with an infrastructure partner, demonstrating that 40-ton zero-emission trucks can achieve daily ranges of up to 600 km under European conditions. Other large players in this segment use their own vehicle fleets and chartered aircraft to ensure capacity during high-demand periods.

Warehouse / Distribution-based 3PLs – Fulfilment & Contract Logistics

Warehouse-based 3PLs centre on storage, value-added services, and order fulfilment. One leading contract logistics provider plans to bring a 65,000 m² multi-user campus online in Eastern Germany to support high-tech and e-commerce clients. In the UK, a logistics group recently invested approximately €269 million in a new hub capable of processing 1 million parcels per day, while generating 10 MW of solar energy. Market consolidation is also intensifying: a large domestic parcel carrier merged with the e-commerce logistics arm of a multinational provider to form a platform with annual capacity exceeding 1 billion parcels.

Forwarder-based 3PLs – Orchestrating Global Freight

Forwarder-led 3PLs act as non-asset brokers, stitching together carrier space across modes. A Berlin-based digital freight broker recently acquired the European operations of a global transport firm, doubling its revenue and expanding access to its proprietary logistics platform. Another start-up in the same market segment is exploring a potential merger after facing difficulties during recent investment rounds. These developments reflect both the growth opportunities and volatility of asset-light, tech-driven models.

Financial- & Information-based 3PLs – Data, Audit & Control Towers

Financial-oriented 3PLs specialise in freight bill audit, payment, and analytics. A Netherlands-based provider of freight audit solutions supports over 250 global clients by validating invoice data and delivering real-time cost insights. Meanwhile, information-centric providers offer cloud-based transport management systems (TMS), predictive analytics, and API integration tools to improve supply-chain visibility and control. Many of these tools are now bundled with broader logistics services as part of long-term managed transport contracts.

Specialist & Niche 3PLs – The Cold-Chain Boom

Cold-chain logistics is Europe’s fastest-growing 3PL niche, projected to grow from approximately €98.1 billion in 2024 to €331.7 billion by 2033 at a 14.1 % CAGR. This is largely driven by rising demand from the pharmaceutical, grocery, and perishable goods sectors. One global cold-storage operator expanded its footprint through acquisitions in Belgium and Italy, adding substantial port-side freezer space and thousands of pallet positions. In May 2025, the company further expanded into the Nordic region, enhancing its meat storage infrastructure and deploying energy-efficient CO₂ refrigeration systems. For shippers in life sciences, food, and floral supply chains, partnering with specialised cold-chain providers is increasingly necessary to meet regulatory and quality standards.

By matching each shipment profile to the appropriate provider archetype – transportation, warehouse, forwarder, financial, or niche – European logistics managers can secure the mix of capacity, visibility, and compliance their networks now demand.

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Contrary to some early headlines, the United Kingdom never left the Common Transit Convention (CTC) when it exited the EU; it acceded in its own right in 2019 and has remained a contracting party ever since. The key date this year was 21 January 2025, when all 38 members – including the UK – switched to the final-state rules of the New Computerised Transit System (NCTS) Phase 5. The upgrade ushers in the biggest procedural shake-up at European land and sea borders in two decades, replacing paper forms with real-time digital messaging and synchronising risk-management data across customs authorities.

What Phase 5 actually changes

Four core tweaks matter to hauliers and forwarders:

1. Paper TAD retired: The once-ubiquitous Transit Accompanying Document is no longer mandatory. Drivers instead present a digital Movement Reference Number (MRN) – a barcode or QR code on a phone is sufficient – to customs officers at the point of exit or entry.
2. Commodity codes have been tightened: Declarations must now carry a minimum six-digit Harmonized System code, pushing tariff classification work upstream into the exporter’s system rather than at the border.
3. Multiple-house consignments (MHC): Several consignments destined for different importers can be grouped under one master MRN, eliminating duplication for consolidators.
4. Electronic Office-of-Incident: Any en-route mishaps – seal breaks, route deviations, temperature excursions – are logged inside NCTS rather than on paper forms, and remedial authorisations are communicated digitally.

HMRC’s web portal and most commercial software packages were patched months in advance, and the new API layer finally allows declarations to be sent in JSON rather than the legacy EDIFACT syntax. Notably, the interface now integrates directly with the UK’s Goods Vehicle Movement Service (GVMS), enabling a single submission to fulfill both safety and security requirements and CTC transit formalities.

On-the-ground impact

Early anecdotal evidence from ferry operators at Dover and hauliers using the Le Shuttle terminal suggests that removing the TAD print-station step has already shortened vehicle dwell times, although authoritative data sets will take a few months to compile. Driver training has proven straightforward: showing an MRN barcode at the booth mirrors the process used for export safety declarations since 2021. Physical inspection rates – Customs’ “red-lane” checks – should decrease as the system’s risk engine ingests richer commodity and trader history data, freeing capacity for genuinely suspicious consignments.

Broader European context

NCTS Phase 5 went live against a backdrop of rapid geographic expansion. Georgia acceded to the CTC on 1 February 2025, becoming the 39th party and stretching the network’s eastern frontier to the Caucasus. The European Commission is already sketching an NCTS “Phase 6” concept that would piggyback real-time container telemetry and vessel data onto the existing message set, although no formal launch year has been agreed.

Remaining pain points

• Guarantee management: Transit guarantees still immobilise large sums of working capital. Trade bodies want a pan-European, blockchain-style guarantee marketplace that could net off exposures in real time.
• MRN recognition gaps: France, Italy and the Netherlands have not yet switched all roll-on/roll-off inspection posts to MRN scanning, so carriers sometimes still insist on a fallback printed TAD.
• SME readiness: Smaller exporters complain that the richer data requirements demand new software or customs-broker spending. HMRC has promised a dedicated SME help-desk before the Black Friday peak.

Outlook for UK traders

HMRC’s target is to certify another 1,200 Authorised Consignor and Consignee sites by Q4 2025, so that the paperless gains achieved at ports propagate into inland depots and groupage yards. For businesses that embraced automation early, the Phase 5 cut-over already feels like a logical extension of the digital export model introduced after Brexit; for late adopters, it is a sharp nudge to modernise or risk longer wait times. Either way, the UK’s commitment to the CTC provides carriers and shippers with a familiar, EU-aligned transit framework – without reopening the political debate about full customs union membership – and positions the border to handle higher volumes with less friction as e-commerce and nearshoring drive trade flows in the years ahead.

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Regulatory Momentum Is Building

Germany blazed the trail in 2022 when its Act on Autonomous Driving allowed Level 4 trucks to operate regular hub-to-hub services without a human driver in the cab within predefined operational areas. At pan-European level, the United Nations-administered update to UNECE Regulation 157 now permits Automated Lane-Keeping Systems (ALKS) to operate heavy vehicles at up to 130 km/h on motorways – more than doubling the previous 60 km/h ceiling and making full-speed cross-border highway use technically legal. Complementing these national and UN rules, the European Commission’s 2025 Industrial Action Plan pledges at least three large-scale cross-border automated-driving corridors and harmonised approval procedures for testing and series production by 2026, explicitly mentioning freight hub-to-hub use cases.

Corridors and Pilots Move from Maps to Asphalt

Real-world trials are already validating the new rule-set. In 2022, 5G-MOBIX staged the first public 5G-enabled autonomous-driving demonstration to cross an EU border, sending connected trucks over the Tui–Valença bridge between Spain and Portugal with seamless handover between national mobile networks. Further north, Einride’s MODI consortium will send a cab-less electric truck along the E6 “Nordic Link” between Sweden and Norway later this year, marking the world’s first autonomous heavy-vehicle border crossing. Inside Germany, IVECO, Plus, and 3PL giant DSV initiated a commercial pilot in early 2024, operating a PlusDrive-equipped heavy truck on daily retail distribution routes – proof that autonomous technology is maturing rapidly enough for dense freight lanes.

Technology Readiness Reaches Daily Operations

December 2024 marked another milestone when Einride launched Europe’s first daily, fully driverless freight service, transporting e-commerce goods between Apotea’s Swedish warehouses under a public road permit. Such live services demonstrate Level 4 availability today, not in the distant future, and provide fleet managers with real cost and uptime data to benchmark against conventional rigs.

A Digital Backbone for Seamless Borders

Connectivity is the enabler. The EU aims to blanket all major transport arteries with uninterrupted 5G by 2025, a target backed by Connecting Europe Facility (CEF) funds that prioritize cross-border freight corridors, such as the Bologna-Munich route. These high-bandwidth links handle the massive sensor data flows and ultra-low latency remote-operator channels that Level-4 trucks require at border posts and roaming zones.

What Logistics Leaders Should Track Next

• Permitting windows for cross-border pilots will widen quickly once the EU’s harmonised approval scheme takes effect in 2026 – plan routes now to secure early slots.
• Driver-in-the-loop hybrids such as PlusDrive offer a bridge strategy, delivering fuel savings and safety benefits without waiting for full driverless certification.
• Labour economics favour early adopters; autonomous fleets directly offset the 425,000-driver shortfall and can redeploy staff into higher-skill remote-operator roles.
• Data infrastructure should be budgeted alongside tractors and trailers – edge servers, 5G contracts, and cybersecurity compliance will sit on the same critical path as vehicle procurement.

For forward-thinking carriers, the regulatory, technical, and commercial pieces are finally aligning. Europe’s next competitive advantage could well be a convoy of self-driving trucks gliding across borders without ever touching a clutch pedal.

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For freight forwarders, the impact of these systems extends well beyond border security. They help minimize the physical handling that can compromise cargo integrity, enable more consistent route planning, and reduce operating costs across multiple points in the supply chain.

Less Handling and Risk of Damage

Scanning systems at crossing points reduce the need for manual inspections. Thus cargo is less likely to be unpacked, moved, or handled by customs staff which lowers the risk of damage. When cargo is manually inspected, items may be dropped, improperly handled, or exposed to unsuitable conditions such as moisture, heat, or dust. Even short exposure during inspection can have consequences. Dust, for example, can settle into packaging seams or surfaces, especially with unwrapped goods, which compromises hygiene and contaminates materials like textiles and mechanical parts. By limiting such risks, these systems bring tangible advantages for freight forwarders who face fewer damage claims, reduced repackaging expenses, and more improved delivery reliability.

Predictable Routes for Reliable Scheduling

Faster processing with the help of scanners means fewer forwarder vehicles are diverted for inspections and left idle at borders for long period. This allows forwarders to prioritize scanner-equipped crossing points that save them time. As a result, they can allocate time slots more precisely, coordinate more reliably with warehouse intake schedules, and reduce the risk of missed delivery appointments.

Shorter Waits for Lower Freight Overheads

As faster border clearance shortens idle time, this reduces fuel consumption from prolonged engine idling and repeated engine starts in stop-and-go queues. Shorter waits also mean that drivers are less likely to reach the legal limits of their driving hours while stationary at the border. This limits the need for unscheduled breaks and overnight rests near the crossing point and helps prevent delays at warehouse intake, missed slot reservations at European distribution centers, and disruptions to handovers in multimodal logistics chains. Moreover, keeping vehicles moving rather than static allows forwarders to avoid overnight holding of freight in buffer zones near the border where fees are often charged for space usage, utilities, and on-site surveillance.

Lastly, shorter waits help logistics providers avoid charges for containers that remain in their possession beyond the agreed period. Many container leasing agreements impose fees when units are not returned on time, and faster border crossings allow forwarders to manage return logistics without facing escalating penalties for each extra day.

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Permit-Free Access for Cross-Border Freight

The agreement eliminates the requirement for EU and Ukrainian carriers to obtain permits from each country involved. Thus, they no longer need to submit detailed applications which typically include information such as vehicle registration data, the type and volume of goods transported, the planned route, proof of insurance, and compliance with technical and safety standards. Carriers also avoid delays caused by limited permit quotas which are usually imposed to control the number of foreign vehicles allowed to operate within a country’s territory in a given period. These quotas can lead to bottlenecks when demand exceeds available permits, so their removal enables uninterrupted execution of shipping operations. This gives forwarders greater certainty when coordinating transport, as they can book carriers without the risk of permit-related restrictions or last-minute cancellations.

Growth in Freight Volume Following Implementation

The European Commission reports that the agreement has led to a significant rise in road freight trade since it came into effect. More than 200,000 extra tonnes of cargo travel between Ukraine and the EU every month. The volume of goods entering the EU from Ukraine has gone up by 42 percent while their total value has risen by 28 percent, with key exports such as steel, ores, and grain continuing to flow. At the same time, exports from the EU to Ukraine have grown by 37 percent in quantity and by half in overall worth, including key supplies such as emergency aid and fuel.

This overall increase in freight movement expands the pool of available shipments for freight forwarders, offers more consistent volume flow, and reduces the risk of underutilized capacity.

Grounds for Halting Automatic Renewal and Impact on Forwarders

Formalized on 20 June 2024, the renewal contains a clause allowing it to be extended every six months by default. This extension can be blocked if one of the parties notifies the other no less than three months ahead and presents proof that its domestic transport sector has been seriously affected. This could involve a significant loss of transport volume and income instability for national carriers or a decline in competitiveness directly linked to the presence of foreign hauliers.

To substantiate such claims, the party seeking to block the extension must provide verifiable data such as national statistics, industry assessments, or financial records that clearly link the negative trends to the operation of the agreement. Moreover, this party must demonstrate that the outcomes are not short-term fluctuations or the result of unrelated factors such as economic downturns, fuel price volatility, or seasonal demand shifts.

Any suspension under this clause would also affect forwarders throughout Europe, as it could limit access to foreign carriers and thus reduce the pool of available hauliers which would make it harder to secure timely and cost-efficient transport.

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Surge in Demand

European tourist destinations experience significant demand for commodities during peak seasons. In coastal areas, for example, the demand for seafood and local wines and spirits is especially high. Seafood, highly sought after by tourists eager to savor the fresh flavors of the sea, is typically sourced from nearby coastal areas and is shipped in substantial quantities to resorts and restaurants. For instance, the Galician coast in Spain is renowned for its octopus, clams, and mussel which are shipped in large volumes to establishments. Similarly, coastal regions of Croatia are celebrated for their scampi and sea bass while Brittany in France is famous for its scallops and lobsters, all of which are transported in large amounts to meet the demands of restaurants and resorts.

Additionally, local wines and spirits see an increase in popularity as visitors are keen to sample distinct regional varieties. For example, French wines such as Côtes de Provence and Bandol from Provence are highly sought after in coastal areas along the French Riviera. Likewise, Albariño, white wine from Spain’s Rías Baixas, is in demand along Spain’s Atlantic coast, particularly in Galicia. These wines are sourced directly from regional vineyards and are shipped in large volumes to local tourist locations.

Demand for Quick Turnaround

Hotels and resorts in high-traffic tourist areas rely on frequent deliveries to prevent shortages. In such establishments, for example, breakfast buffets alone require large quantities of perishable goods such as fresh fruits, dairy products, eggs, and baked goods, all of which must be replenished daily. A fully booked seaside resort with multiple restaurants and bars might exhaust its supply of seafood, premium cuts of meat, and wines and spirits within a few days. Thus, goods must be transported on a tight schedule or otherwise, hotels may be forced to limit menu options and remove signature dishes, use lower-quality or less preferred ingredients, or reduce portion sizes to extend the available stock.

Competition for Scarce Transportation Capacity

Securing transportation capacity can be a major challenge during peak travel seasons in Europe. Freight forwarders must compete for limited transport slots on ferries and freight trains when cargo volumes overwhelm existing infrastructure. Moreover, fixed schedules of railways and maritime transport can limit the adaptability needed during peak periods. These schedules are typically set well in advance and are rigid, regardless of whether there is additional demand for transport services. Additionally, during peak travel seasons, freight forwarders face stiff competition for trucking capacity as carriers prioritize long-term clients, higher-paying shipments, and contracts with guaranteed volume commitments. Moreover, carriers often prioritize shipments on routes where toll costs can be minimized, freight that requires minimal special handling, and complete loads that maximize transport capacity.

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Advanced Customs Clearance

Known as pre-arrival processing, submitting the required customs documentation electronically in advance can expedite clearance. This involves providing transport and merchandise details such as the carrier’s name and mode of transport, departure and arrival locations, and detailed routing, including any transshipment points. Additional information to submit before reaching the border includes container or trailer identification, a detailed description of the cargo such as commodity or HS code numbers, and a breakdown of freight costs.

Expedited Trade Lanes

Fast or green lanes also expedite crossings and reduce idle times for European logistics providers. These lanes are provided by non-Schengen countries like Serbia and Turkey at key border gates to promote a smoother flow of trade with neighboring countries.

These designated lanes are usually reserved for pre-cleared and low-risk shipments. Pre-cleared cargo is one that has been processed by the customs authorities before its physical arrival at the border and can bypass standard inspection. This pre-clearance is often part of a broader trusted trader program where companies with a history of compliance and security can receive faster processing to avoid delays associated with standard customs checks.

Low-risk shipments, in turn, are assessed based on the potential for cargo to pose security or compliance issues. These shipments present minimal risk of smuggling, contamination, or customs violations and are processed quickly through expedited lanes.

Border Crossing Slots

In regions where trade flow is dense and border delays are a common issue, some border agencies either require or offer the option to book a time slot for crossing. This service is available in European countries such as Estonia at crossings with Russia and in Lithuania for all goods vehicles exiting the country via the external EU border.

Forwarders can book these time slots through designated online portals provided by the border customs authorities. The process typically involves registering the company details, the specific cargo being transported, and the anticipated time of arrival at the border. In addition, forwarders may need to submit information such as special permissions and clearances for oversized cargo, restricted goods, and controlled substances, exact crossing location, and intended route through the border if using designated transit corridors or customs warehouses.

Real-Time Monitoring

Some border crossing points are equipped with real-time monitoring systems that provide up-to-date information on border congestion. This happens through advanced sensor networks, RFID tagging, and predictive analytics platforms that track individual vehicle movements, assess volumes and types of traffic, and predict bottlenecks before they happen. Forwarders can access this information via online portals or mobile apps and adjust schedules or reroute shipments to less congested border crossings if necessary.

The post Optimizing Border Crossings for European Freight Forwarders appeared first on International Forwarding Association Blog.