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German border controls could spark freight transport collapse and heavy losses, shippers warn

Dutch shippers and forwarders association Evofenedex are among those critical of the controls.

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13.09.2024

Starting Monday, September 16, Germany will implement additional controls at all its land borders with neighboring countries for a six-month period. Shippers are raising alarms, urging German regulators to reconsider the decision, warning of severe disruptions to supply chains.

“We are strengthening internal security and continuing our hard line against illegal migration,” Germany’s Interior Minister, Nancy Faeser, told Reuters.

Faeser emphasized that these measures are aimed at tackling the issue of “illegal migration” and protecting against the immediate dangers posed by Islamic terrorism and serious crimes.

Impact on supply chains

However, industry experts warn that the reintroduction of border controls will return the European transport and logistics sector to the challenges faced during the COVID-19 pandemic.

Shippers have reacted strongly to the news, referring to it as “the end of the borderless Schengen zone,” following Germany’s announcement of the controls starting September 16.

The business community was taken by surprise, according to the Dutch shippers and forwarders association, Evofenedex.

“There’s a risk of long waiting times and disrupted supply chains, which could cause delays in delivering fresh goods like flowers,” Evofenedex said in a statement.

The spot checks will target borders with Denmark, Belgium, France, Luxembourg, and the Netherlands—particularly busy routes, notes Geert van Eyck, an adviser at Evofenedex.

“Such controls are guaranteed to lead to a transport collapse. Total control is, in our view, unfeasible,” van Eyck said.

He added that the Netherlands exports €165 billion worth of goods annually to its eastern neighbor.

“Six months of these border checks will cost tens of millions in delays alone,” van Eyck warned. “The collateral damage from supply chain disruption will be even greater.”

The Evofenedex adviser also noted that this would harm not only the European domestic market but also Europe’s global competitiveness.

Proposed solution

Evofenedex acknowledges the need for security measures given recent unrest in Germany and dangerous incidents in the transport sector.

In July, a parcel transported by DHL caught fire in Leipzig. Germany’s Federal Office for the Protection of the Constitution and the Federal Criminal Police have warned logistics companies that more dangerous explosive packages could be sent, intending to disrupt Western logistics operations.

Despite these concerns, the association advocates for a “smarter system that minimizes disruption to supply chains.”

“If that’s not feasible, we would like to discuss the creation of ‘green lanes,’ as was implemented during the COVID-19 pandemic. This would allow freight transport to cross borders more efficiently. In our view, this is not the worst solution,” Evofenedex suggested.

“Six months of border controls will soon cost tens of millions, just due to delays,” they reiterated.