The second quarter of the year has once again ended with serious capacity shortage in most of the markets. As per ECG (Belgian based Association of European Vehicle Logistics); crisis resources lag the market and investment is insufficient.
Although the automotive sector is seeing both volumes and market confidence increasing across Europe, the FVL (finished vehicle logistics) industry is under significant pressure. The latest ECG Confidence & Cost Trend Survey (that is conducted regularly amongst ECG members ) shows operations at maximum capacity. Further investment is urgently needed to meet the increasing needs of the expanding market as the current financing is not sufficient for the growing demand.
“Despite increasing confidence in future volumes, ever tighter margins and short term contracts mean the industry is still not investing in extra capacity. Worse still, in many places the transporter fleet continues to age, and this despite plenty of production capacity at the trailer and truck manufacturers.” ECG’s Executive Director, Mike Sturgeon.
