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PICTURES
of refugees trying to cross European borders
have become commonplace, writes John Manners-Bell,
managing director of the UK's Transport
Intelligence. Whether at Calais trying to
jump trains or trucks bound for the UK,
or on a much larger scale crossing en masse
into Hungary, Austria or Croatia, the migrant
crisis has dominated the political agenda,
he writes.
Whereas
the media has rightly highlighted the humanitarian
consequences of the movement of thousands
of people across the continent, little attention
has been paid to the impact of the political
response on European trade and transport.
One
of the most successful results of greater
European integration has been the free movement
of goods and people throughout the Single
European Market. For many countries in the
region a separate treaty - the Schenker
agreement - has meant the total abolition
of border controls. This means that trucks
can travel anywhere in mainland Europe without
being required to stop by authorities.
The
pressure that the mass movement of migrants
has placed on European governments, especially
those in eastern and southern Europe, means
that this agreement is under threat as never
before.
In
total 26 countries have signed the agreement
- 22 EU members and four non-members. Only
six of the 28 EU member states are outside
the Schengen zone - Bulgaria, Croatia, Cyprus,
Ireland, Romania and the UK.
However
the agreement includes a clause, which allows
countries to temporarily re-impose border
controls in certain situations. This is
exactly what Germany has done due to the
influx of migrants across the border from
Austria.
Austria
itself imposed controls on its border with
Hungary and has carried out spot checks
on trucks since the deaths of 71 migrants
in a refrigerated vehicle in August. On
occasion these have resulted in queues up
to 30 kilometres in length.
The
costs for Europe's economy are twofold.
Firstly, re-applying border restrictions
would undermine the supply chain strategies
of manufacturers and retailers. The Single
European Market was a critical element in
the efficient distribution of goods around
the region and the unrestricted movement
of trucks was a fundamental part of this.
Inventory costs would rise making Europe
even less competitive compared with markets
in Asia, for example. With delays at borders
sometimes running into days and an inability
to effectively schedule just-in-time deliveries,
the whole foundation of European retail
and manufacturing strategy would have to
be re-assessed.
Secondly,
transport costs would also rise. Dutch-based
logistics provider Jan de Rijk has been
one European road freight operator to comment
on the disruption the crisis is causing
the industry. Managing director Sebastiaan
Scholte stated that it was faced with increased
waiting times at border crossings due to
checks by authorities: "In an industry
with very thin margins these additional
costs are not sustainable in the long run."
To
offset these costs his company would be
charging waiting fees due to border checks
or channel tunnel disruptions. Of course
ultimately these will be passed on to European
consumers.
Logistics
Management magazine has discovered a range
of American complaints as their dealing
with Europe has been disrupted too, writes
Patrick Burnson, executive editor
of the Framington, Massachusetts publication.
The
crisis has resulted in increased wait times
at border crossings including the Channel
Tunnel between Calais, France and Dover,
UK as well as causing empty positioning
and reduced volumes for truckers, having
a significant financial impact on European
air cargo logistics, he said.
In
a situation that only seems to be getting
worse, The International Air Cargo Association
(TIACA) has called on world leaders meeting
at the United Nations to work together to
find solutions to the ongoing migrant crisis
in Europe.
While
concentrated on the Continent, the implications
for US logistics managers is obvious, said
analysts.
The
situation has already seen more than 514,000
people cross the Mediterranean to reach
Europe with almost 3,000 people perishing
on the journey or reported missing.
"We
must act together now to stop this human
tragedy, and TIACA, which has in-depth expertise
on global security issues, is prepared to
offer its support in any way it can,"
said its secretary general Doug Brittin.
It
is clear that, to date, European governments
have been influenced by political factors
relating to fears over uncontrolled, mass
migration, concludes Mr Manners Bell. Economic
considerations are much lower down the agenda
and the supply chain and logistics industry
must lobby hard to make sure that governments
understand the full consequences of their
decisions on border controls.
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