Agri-food logistics versus climate
In the food and agricultural industry, supply chains are dependent on relatively stable weather and mild temperatures in most crucial agricultural production zones. As climate change continues to escalate, the industry faces challenges in maintaining its supply chains.
Extreme weather events damage infrastructure, disrupt transportation networks and delay supply chain operations. Last year, transport performance on both Rhine and Danube rivers dropped by 10 – 20% on average due to low water levels. Spot and contract rates have been declining since Q4/2022.
As the high summer season is currently underway, freight prices, especially on the spot market, are expected to increase significantly.
To keep supply chains undisrupted, road haulage companies must now keep an eye on the weather as well, planning operations both in the short and long term, factoring in the possible changes in cargo volumes, loading places, schedules and revenues, as climate change is here to stay. (mk)