Freight charges, lack of capacity, and the race to Net Zero dominated the agenda at IELA’s conference, which returned to Bruges, Belgium, at the end of June.
Higher freight charges and lack of capacity was top of the agenda at the 37th International Exhibition Logistics Association (IELA) Congress and 9th IELA Partnering Event, which took place in Bruge from 27 June to 1 July.
During a panel discussion, Bart Van Gills from The Agency, Belgium, which specialises in international road transport, explained how they were hit by volatility and high freight rates.
He asked if the container carriers are the only ones to blame for the current price-market situation and if there are any side effects of the high sea freight levels seen in the transport market. Demand remains at a high level together with the pressure on the price, capacity and the people.
Tom Hautekiet, from the Port of Antwerp-Bruges, agreed that the situation remains challenging. With disruption due to a high number of incidents, Hautekiet said: “For us as a Port, it is extremely important to understand how to plan ourselves in the chain”.
He explained what precautionary measures are being implemented (minimising congestions, shortage of containers, etc.) and how other challenges are being handled (traffic, Covid challenges, less manpower etc.)
It was agreed that when there is saturation in all ports, staff shortages, late arrivals, full warehouses, everyone in the supply chain is prepared to sit around the table to discuss solutions. Digitalisation, efficiency, and future modes of transport are among the topics.
Lina Jasutiene, from the insurance provider's perspective, defined the pandemic as a ticking bomb for smaller shippers.
She presented her views on insurance post-pandemic and precautionary measures to be taken during this period on transport insurance and its claims. Jasutiene stated how cargo claims immediately rose as clients were convinced that “every penny counts”.
Balancing demand and supply remains a challenge. Strategic plans involve the introduction of a more efficient digital system and new software being available in the air cargo business. Interconnectivity in ports is fundamental in intensifying the operational role of ports. It was noted that collaboration between supply chain partners has been strengthened.
Race to Net Zero
Sustainability was also on the agenda. UFI’s Christian Druart and Olivia Ruggles-Brise from Greenview hosted the discussion by sharing the advancements in the Net Zero Carbon Events Initiative, launched in the wake of COP26.
Speaking post-event, Florent Jarry, Partner at AMR International Limited, said: “The IELA Conference offered an opportunity to discuss the impact of the Net Zero carbon pledge with representatives of the entire exhibitions value chain. Participants highlighted the importance of mindset changes and, crucially, of cross-industry collaboration.”
From the exhibitor perspective, Mputu Schmidt from Convergent Group, Belgium, explained how important it is to exhibit at shows in order to find sustainable distributors and explore new markets.
The main priority has become to use local services to avoid transport costs and travel. Measuring the footprint is included in the criteria when making transport decisions but matchmaking sustainability and cost-cutting remains a challenge.
The stand solution provider perspective offered by Edwin van der Vennet from BeMatrix, Belgium, reiterated the point. He said: “Sustainability does not have that return on investment, but it does not need to be more expensive as long as we start doing things differently, and we accompany them (our clients)”.
The push for change comes from all sides: Clara Touillon from GL Events, France, said customers are pushing and it changes the way suppliers operate.
She noted it is now insufficient to say that the solutions on offer are sustainable. The client expects a full explanation of the definition, requesting methodologies and carbon footprint assessment of logistics services and materials. It is required now that logistics providers give this information.
