Trade fair logistics: Keeping budgets under control

Whether you look at your weekly shopping bill or your energy costs, it’s clear that prices have risen significantly recently. The transport industry is also affected by this.

There are many reasons for that, including carbon taxes, fuel prices, inflation and driver shortages. Güray Saritas, the managing director of Europfast, an international carrier based in Neuhausen near Stuttgart, points out that other factors are also having a significant impact on the industry: “There is a shortage of truck capacity due to rising demand in the current restart phase following the pandemic.” There are other economic factors in play as well, according to Saritas, the impact of the war in Ukraine being a prime example. He also mentions a study of transport prices carried out by the University of St. Gallen. The study investigated the most important factors affecting transport prices. The shipment date was the most important factor, according to the respondents, followed closely by the distance between the sender and the recipient. Right after that came the price of fuel and the weight of the goods to be shipped. The supply of available loading space was among the other factors mentioned as playing a role in the price.

It is not just transport service providers as a whole that are affected by this situation; it is also something that trade fair freight forwarders have to face. They have to decide how to get the message across to their customers. “At Europfast we approach this openly and transparently,” says Güray Saritas. “Our newsletter keeps our customers regularly informed about current developments in the market,” he explains. “That creates trust, which is the basis for a good, lasting working relationship.” In addition to that, Europfast is well aware of the challenges confronting the industry. “Many companies are facing big financial challenges after the recent long years of crisis,” emphasises Saritas. “There is a high risk of a wave of insolvencies.” He warns that such a scenario could lead to a short-term shortage of truck capacity. “That would inevitably increase the organisational risks of event organisers.”

Provided customers in the events industry approach this in their usual professional way, they will be able to take appropriate action. “What you have to do is prevent this by means of supplier agreements and by planning ahead well,” advises Saritas. Placing orders early to secure the capacity you require on favourable terms and conditions helps with this: “Our company is actively committed to stabilising supply chains and planning ahead.” If you place orders with trade fair logistics companies in good time, that also provides more scope for combinations and reduces the distance that has to be travelled by each vehicle. The customer also has other options that reduce expenditure: “Reducing journeys without loads saves costs and also reduces emissions,” explains Saritas. In addition, digital solutions can be used productively to counter cost increases. “Digitalisation supports the automation of order processes and facilitates more efficient processes” (www.europfast.com).