Key findings
The European freight transport logistics sector contributes significantly to the European economy. The value added and jobs generated by the sector are significant. Moreover, the sector functions as a key enabler in the effective and efficient functioning of other services and economic activities. Transport and warehousing are the most prominent economic activities within the logistics sector, representing the majority of added value created.
The EU logistics sector performs above the world average, although some countries (e.g. Japan and the United States) are clearly outperforming Europe. The performance varies strongly between EU Member States, as a result of differences in economic and industrial strength, geographical conditions, infrastructure quality and population density.
The sector is faced with a large number of external developments and trends. These include both technology-driven ones (e.g. e-commerce, e-procurement, etc.), and developments that focus on enhanced collaboration and integration within the logistical chain (e.g. supply chain integration, multi-modality and reverse logistics).
There are three clear problem areas for the European freight transport logistic sector that exist today and will remain in the foreseeable future. These problems will lead to an ineffective and inefficient use of transport modes within the sector. The first problem is the continuous rise in costs, in particular for transport activities (although other cost components also show increases). The second problem area relates to the external environmental effects of the logistics sector, where energy use and CO2 emissions are threatening its sustainability. The third key issue concerns the quality and quantity of relevant staff. These problems not only affect the sector’s contribution to Europe’s society, but also limit the ability of stakeholders to respond to their customer requirements.
These problem areas are structural and continue to persist in all four future scenarios that have been developed as part of this study. These scenarios have been developed around two distinct drivers which influence the future of the logistics industry, encompassing the main uncertainties that impact the sector. These are the uncertainties around the economic development of Europe from stagnant to dynamic and prosperous and uncertainty related to the spatial patterns of production and consumption (from regional to global levels).
To address these problems that are challenging the logistics sector in Europe, various objectives have been formulated that lay the foundation for future policy actions. The utilisation of resources needs to be improved, new technologies need to be adapted faster and innovation needs to be stimulated, especially within SMEs. The interoperability between transport modes needs to be improved, as well as the coordination of the supply chain. Administrative barriers need to be removed and red tape reduced. The environmental sustainable behaviour of sector agents and governments should be enhanced, and the use of alternative solutions (fuel, technology and business models) needs to be accelerated, resulting in lower negative externalities. Finally, the attractiveness and understanding of logistics professions needs to be strengthened.
The European Commission has various policy options to realise these objectives and in this study three were identified. Each of these options consists of a proposed set of specific actions to tackle the most important problems in the logistics sector.