The TSL industry, and the current crisis…

Poland is one of the most active logistics markets. The total stock of modern warehouse space in Poland, as of the end of 2021, is more than 25 million sqm. What impact is the current crisis having on the TSL industry?

The crisis in the TSL industry: Challenges for the Polish economy

Our country is attractive to investors, especially its western part. The factors that affect the attractiveness of a particular sector are mainly aspects related to human resources, road system or infrastructure. The TSL industry, is one of the most important branches of the Polish economy. However, Poland, like many countries in Europe, has been struggling with the crisis for some time, which will intensify over the next few months.

Driver shortages and delivery delays

Armed conflict across our eastern border, rising inflation, high fuel prices and constant changes in legislation have put the TSL industry in a very difficult position. An additional problem is the shortage of drivers, which translates into delivery delays. Port congestion, can be seen in many parts of the world, making logistics companies face a real challenge. The trouble of transporting goods from Asia to Europe, is fraught with a shortage of people to work with, but this is also the result of previous problems of lost liquidity in supply chains.

Sanctions and high transportation costs

Another aspect that contributes to the growing problems is the sanctions imposed due to the war in Ukraine. These sanctions are forcing businesses to seek new routes and delivery options, most of which involve high costs and further delays. The search for alternative modes of transportation, is also linked to rising shipping prices, which may contribute to a decline in demand as many companies, in an era of inflation, look for opportunities to save money.

Higher costs and financial problems in supply chains

Lack of liquidity in supply chains, is associated with shortages of raw materials, intermediates or components. Delays of several days, put many companies in financial trouble, which have not yet had time to recover from the problems caused by the pandemic. However, the indisputable fact is that companies that will be able to meet the needs of the market with their product available off-the-shelf can build an advantage and leave the competition behind. In the long run, the decision to maintain high inventories even during a crisis will benefit a company’s finances and position in the industry.