In light of the current refugee crisis, many aspects of life, as well as business, are being affected by the enormous numbers of people fleeing the wars and tragedies in the Middle East and Africa in search of shelter in Europe. Nevertheless, one might not specifically think first of all of its impact on costs and prices in involved in European logistics.
I therefore found an interesting article enlightening the consequences of political decisions on the business world and more precisely, European road cargo.
With the decisions of many European governments to tighten border controls or temporary shutting their borders, the freight costs for goods delivered by road rise due to extensive waiting time. These violations of the Schengen agreement, and a step backwards in terms of European integration, add up to the costs of products made in Europe and therefor making it less competitive compared to other world markets.
Given the current economical situation, closing national borders is not only a mistake from a humanitarian perspective but also from an economical one.
By: Konstantin Brosch
Referenced by: The Load Star