Expertise & Clear Advice

European logistics real estate markets have not suffered last year from the Covid-19 pandemic. Due to fast growing e-commerce and higher inventory levels of producers the total expected take-up in 11 European countries of 23.6 mln sqm for 2020 is only 3% down compared with record year 2019. In major markets like Germany and the UK last year’s figures were certainly not bad.

The pressure on rates and unparalleled capacity constraints in transportation during the Covid-19 pandemic makes companies even more aware of the relevance of managing freight in a professional way. Clear views in freight cost developments and more important the predictive insight towards the future enables companies to make the right choices. The BCI Transportation Monitor assists in how to manage costs and to define your freight procurement strategies short and long-term.

The new Silk Rail Routes between China and Europe have shown a fast growth with an increase of 50% in volume and 100% in value in the last five years. Currently, about 150 trains per week run between 30 European location and 16 regions in China.

In the period 2013-2019¹⁾ 424 Mega Distribution Centers (each more than 40,000 sqm floor space) have been established or announced in the logistics heart of Europe. The majority of them were built in Germany (285; 67%), followed by the Netherlands (98; 23%) and Belgium (41; 10%). Altogether these 424 XXL warehouses have 28.9 mln sqm floorspace.

As the traditional supply chain risk approaches fail, the key question is how to incorporate risk resilience in your supply chain. BCI has developed a Resilience Framework to assess risks and to make explicit trade-offs in terms of risk management, resilience and investments.

Covid-19 has exposed the vulnerabilities of global complex supply chains. Many companies are faced with a lack of end-to-end visibility. Do you stay in the dark or develop a control tower?