As we approach the fifth anniversary of Brexit (31st January), the National Institute of Economic and Social Research (NIESR) suggests we can be cautiously optimistic about the economic outlook for 2025 with the UK predicted to experience some improved performance.
Despite rising operating costs and increasing National Insurance, European road transport specialist Europa Road is hopeful.
It’s been a tough few years for the UK-Europe transport sector, with economic uncertainty because of Brexit, recovery in the wake of the pandemic, and volatile energy prices following the Russia-Ukraine war.
With a continued increase in operating costs, exacerbated by tighter budgets, Adrian Redmile, Branch and Sales Director at Europa Worldwide Group, explains that we should expect to see companies “looking towards maximising efficiencies and optimising operations in the supply chain” this year.
He said: “The overall increase in the cost of running a business will hit everyone in 2025 – suppliers and customers alike. So, optimising the logistics of the supply chain will be essential to driving prosperity.
“Leveraging digital technology is one way the logistics industry is looking to drive efficiency in the supply chain. It can be employed effectively across road, air and sea freight, and 3PL/warehouse fulfilment so that customers can book, manage and track consignment themselves and thus, reduce administration time.
“This is something that we have focused on over the past few years, and it certainly makes a difference to customers and has helped us succeed in a challenging economic climate. The upfront costs of these investments are certainly daunting, but if the return is a slick, streamlined supply chain, it is absolutely worth it – for us and for our customers.”
Europa Road has invested heavily in digitalisation with a large team of dedicated software developers focussed on developing and integrating new, innovative technologies.
This includes the roll-out of automated notifications and updates, to keep customers informed on every milestone in a consignment’s journey, as well as having ‘boots on the ground’ to deal with any customer enquiry quickly and proactively.
Adrian continued: “As well as increasing efficiencies through digitalisation in 2025, operators will need to be responsive to market demands. For example, navigating the complexities and expenses around customs clearance is becoming a significant pain point for businesses requiring European road freight services.
“From our point of view, one way to navigate this is to help customers consolidate shipments to manage the cost of customs clearance. Specifically in road freight, we are seeing heavier loads being made and fewer journeys, which reduces customs clearance charges and the ‘pence per kilogram’ freight charge.
Sustainability is another factor, which will continue to drive change in logistics. In fact, already within the European Union, new legislation for Corporate Sustainability Reporting (CSR) is having an impact on British and European markets.
“According to incumbent legislation, which is already in place for our Belgium and Netherlands operations, we are now required to report on sustainability – assessing the impact of our carbon emissions on people and the environment.”
As leaders in European road freight, Europa is doing everything it can do to make positive steps towards sustainability and decarbonisation, as the industry works towards net zero emissions.
The company, headquartered at Dartford’s 27k sq.ft 1Hub, was an early adopter of Pledge, an accredited emissions measuring, reporting and offsetting platform. Most recently, Europa introduced carbon insetting with the use of HVO-100 to replace diesel fuel on new routes from the UK and Netherlands.
Adrian concludes: “Against the ongoing backdrop of a challenging global economy, many within the sector will struggle to grapple with the challenges 2025 might have in store. The successful firms will be those who are creative and focus on their core strengths to provide the best value to customers.”
