Car manufacturers must guarantee minimum supply
In Brussels, the association of European vehicle logistics, which represents the interests of the finished vehicle logistics (FVL) industry, recently stressed that the sector is currently hit by severe disruptions due to material shortages and threatened production schedules. It added that the "FVL industry continues to be decimated by the massive reductions in volume resulting from material supplies that appear completely unpredictable."
The association assumes that the development is no longer due to the well-documented global shortage of semi-conductors, as other material shortages, ranging from aluminium and magnesium to leather, are now affecting the industry.
ECG president Wolfgang Göbel therefore called for contractual commitment to minimum volumes by the industry. Many operators are registering significant losses and will be unable to invest in increased capacity when volumes eventually return.
ECG executive director, Mike Sturgeon: “It is a fact that the outbound logistics sector is treated completely differently from suppliers in inbound logistics. The OEMs have for years taken advantage of their finished vehicle logistics suppliers with over-stated tender volumes, no volume guarantees and with LSPs expected to absorb whatever market fluctuations may occur while still achieving demanding service levels.” (sh)