Calmly unto the storm
A decade of growth in the German logistics industry could be coming to an end. Confidence nevertheless prevailed at the industry meeting in Berlin.
In September a survey of the national logistics industry, published quarterly by the German Logistics Association (Bundesvereinigung Logistik BVL), illustrated a trend that is clearly pointing downwards. The business climate as well as business expectations were negative, and the business situation was only slightly above the neutral mark of 100 points. I was afraid that this basic situation might rather depress the mood at the German Logistics Congress in Berlin. Fortunately, this wasn’t the case. Pessimism would not fit in well with the underlying character of this congress of many years standing.
Just like in 2008 – but also not quite the same
It became rather obvious at the meeting, however, that the economic slowdown is now no longer only a problem for large and distant corporations, but has also reached the broadly-positioned German logistics industry.
“The negative indicators are real, they’ve arrived in everyday business,” said BVL chairman Robert Blackburn in his opening address to the congress. He also underlined the fact that Germany is in a relatively good position today, however, as private consumption and the construction industry are keeping the economy ticking over. “Actually, the situation feels a bit like in 2008 – just a little less extreme, fortunately.”
Minister wants parcels in the underground
Blackburn also reminded the industry’s representatives assembled in the full hall for the congress of the fact that, after ten years of growth, logistics has enough substance to hold its own in a downturn.
German transport minister Andreas Scheuer appealed to the competitive spirit of the German logistics industry, saying that “Germany’s a star pupil and must remain so.” Scheuer described the forthcoming requirements for more protection of the environment and the climate as an opportunity – also for shipping. “The strictest emissions standards already apply in the North Sea. We’ll be ready with our know-how when other seas follow.” One topic that keeps the industry and the country on its toes is the number of parcels flooding city centres. 3.5 billion parcels are already delivered annually today, and in ten years their number is expected to grow to a staggering 9 billion.
For minister Scheuer it’s clear that a rethink is essential. “Systems haven’t got infinite resilience. New approaches are called for. It might be possible to use underground rail systems at night to feed the parcels into depots.” Christian Grotemeier, the managing director of BVL.digital, also presented solutions. “Bus and taxi lanes could be opened up to courier services.” Even if this proposal was not meant entirely seriously, it shows that meetings such as the German Logistics Congress remain essential platforms for the exchange of ideas and dialogue on key issues.