Europa highlights driver shortages and rising costs as key challenges in 2018

Europa highlights driver shortages and rising costs as key challenges in 2018

Logistics operator Europa Worldwide Group has confirmed 2017 was its most successful year to date, and while the privately-owned freight forwarder has ambitious plans for 2018, it warned tackling driver shortages and rising costs will be key challenges in the year ahead.
 
Europa’s Operations Director Dan Cook said: “2017 was Europa’s most successful year on record, with consignment growth running at 25 per cent across the business. This was the result of a combination of factors, including how the partner changes we made in Spain, Denmark, Germany and the Netherlands all came to fruition and an increase in overseas controlled business as well as our own UK generated growth.
 
“Our goal is to offer a structured direct service to every country in Europe, with multiple entry points in many cases, and we are fast approaching this benchmark – however there are certainly some challenges at play, particularly the decrease in availability of skilled HGV drivers.
 
“The problem affects us in the UK, to employ our own drivers performing distribution within the UK, something I believe our whole sector feels. It also affects us via the third parties we contract for international haulage, as well as the European market place for subcontractors.
 
“Wherever you look, and whatever your business model, there are not enough drivers in Europe for the traffic volumes available. This can only have an upward impact on cost, and in the end prices to the consumer. Customers can tell us they can’t pay more. We understand that conundrum, but in the end, the pressures on cost are real, and are not absorbable by the industry. Multiple legislative changes throughout Europe in recent years also drive up operating costs significantly. The uncertainly surrounding Brexit, also I suspect, makes the UK a less secure place for EU nationals to want to work - a workforce that is also crucial to our sector.
 
“Whatever the complex reasons for the shortage, we see more opportunities than in previous years, and due to the smaller pool of candidates, costs are on the rise. At Europa, we firmly believe in fair and equal working conditions and the opportunity for progression. We want to see more young people considering logistics as a profession, be it as a driver, branch manager or operations specialist.
 
“This is how, in the long run, we will tackle the shortage, combined with increased flexibility for drivers in where they want to be based and by investing in our driver facilities. We hope to see more investment across the board in training and apprenticeships going forward.”
 
Cook said managing rising costs, which are linked in part to the driver shortage and various pieces of European legislation, is another key challenge for Europa this year.
 
“At Europa our ethos is to offer the very best service at the very best price to all of our customers and we endeavour to maintain this standard even against a backdrop of rising costs. However, it is inevitable that at certain times market conditions will affect what we do and we must plan ahead as much as possible to anticipate these peaks and troughs. 2018 is set to be another very successful year for our business and with our robust strategy already in place for the year we are confident we will meet and exceed our targets.”
 
Europa, which employs 650 people across 12 sites in the UK and Hong Kong, provides air and sea, warehouse and showfreight services alongside its road operations.