Challenges and Threats Faced in 2020 by International Logistics Companies Operating on the Polish Market
Abstract
:1. Introduction
- What are the challenges for the entire TFL industry and to what extent are they related to sustainable development?
- What are the threats that TFL industry representatives have observed and to what extent do they affect sustainable development?
2. Characteristics of TFL Industry in Poland
3. Literature Review
4. Research Model Description
4.1. General Description
4.2. Research Model Assumptions
5. Results and Discussion
5.1. The Biggest Challenges for the TFL Industry for 2018
5.2. The Biggest Challenges for the TFL Industry for 2019
5.3. Challenges for TFL in 2020
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Challenges 2018 | Detailed Description |
---|---|
Infrastructure | Vehicle development, improvement of roads, expansion of seaports. |
Technological environment: innovation | Innovation, Artificial Intelligence (AI), blockchain. |
Technological environment: digitization | The development of Internet commerce. |
Macroeconomic environment | Increase in societal prosperity, general economic growth in the European Union (EU), territorial expansion, entrance into new markets, potential-growth exports from Poland (PL), Silk Road as a direction with potential for Poland, development of EU economies, China, Germany, development of intermodal transport: rail transport in PL and outside, development of maritime transport. |
Legal environment | Brexit, changes in transport-related regulations in EU member states, increase in transport rates. |
Organizational environment | Consolidation, industry standards, offshoring. |
Threats 2018 | Detailed Description |
---|---|
Organizational environment | Lack of drivers, lack of workforce, ongoing difficulty in obtaining qualified staff, both office and warehouse workers and drivers, technological changes—Increasing solutions that ignore traditional logistics operators, reduction of rates, leading to deterioration of service quality. |
Legal environment | Unfavorable legal regulations, EU regulations protectionism at the European level, introduction of minimum wages by successive EU member states, lack of reaction on the part of the Polish government to the problems of carriers, increasing bureaucracy, formal and legal obstacles imposed by Western countries, protectionism of the “old EU” countries towards the “new EU” countries, interference in the Polish market of “third countries”, changeability of Polish law, limitations for Polish carriers in Europe—MiLOG in Germany, Loi Macron in France and recently in Italy. |
Macroeconomic environment | Blockade of markets, nepotism, trade wars, the situation of German economy, low unemployment and rising wage expectations, exchange rate differences in international transport, rising labor costs, economic slowdown of EU and PL, Mobility Package, rising transport costs, saturated labor market in the industry, uncertain value of PLN, higher risk of currency exchange rate fluctuations against USD and EUR, and decreasing margins on foreign sales, changes related to retirement age, problems with city logistics, rising fuel prices, political situation in Poland, political situation in Europe (Russia vs. EU vs Turkey), political factors hampering trade with Russia and Ukraine |
Infrastructure | Traffic congestion, decreasing road and parking space capacity. |
Challenges 2019 | Detailed Description |
---|---|
Technological environment: innovation | Industry 4.0, automation, robotization, electrical cars, car hybrids, drones, long road trains. |
Technological environment: digitization | Development of Internet commerce, increased use of mobile devices, trading platforms, logistic platforms, modern warehouse management systems (WMS). |
Legal environment | Elimination of restrictions on trade with Russia, new regulations to encourage the development of rail and intermodal transport, industry consolidation (Mergers & Acquisitions, M&A), Brexit (reallocation of companies from the UK to the European Union) |
Infrastructure | Modernization of railway infrastructure, construction of the Central Communication Port, investments in the Małaszewicze border crossing, transport nodes and road terminals. |
Macroeconomic environment | Economic growth in the EU and the continuing high rate of GDP growth in Poland, Poland’s good position as a provider of TFL services to the EU market, increase in transit through Poland, Poland as a storage facility for global companies, increase in consumption, geographical location of Poland at the crossroads of trade routes, development of the automotive industry, increase in domestic distribution, development of the Silk Road and cooperation with China. |
Organizational environment | Development of multi-channel sales, new business models (proximity retail), development of industry standards, horizontal cooperation in a limited scope (competition-logistics company-courier company). |
Threats 2019 | Detailed Description |
---|---|
Legal environment | Legal regulations of the European Union, aimed at protecting its own market and limiting the access of non-resident carriers of particular countries, in particular the Mobility Package, instability of the Polish legal system, Brexit border blockages, increase in administrative procedures; increase in fiscal burdens (taxes, costs of ship owners’ adaptation to new standards of sulfur content in marine fuel, increase in energy prices), lack of clear procedures when employing foreigners, restriction of access to city centers, regulations concerning environmental protection. |
Macroeconomic environment | Recession, decrease in consumption, increase in fiscal burdens on enterprises, greater connection between politics and business-negative impact, unstable political situation in Poland and in the world, high dependence of Poland on the macroeconomic situation in the world, increase in protectionism, competition from the Silk Road to the sea road, unstable situation on the sea freight market, decrease in the inflow of financial resources from EU funds. |
Organizational environment | Shortage of skilled workers; shortage of drivers, warehouse workers; increased competition in the industry and outside the industry (Uber), the possibility of taking over the Polish TFL market by carriers from Russia, Belarus, Ukraine, new business models (cost pressure, price pressure), increase in wages, interception by global shipping line organizations, taking over the competence of freight forwarders, self-service logistics introduced by global players in the online trading market |
Infrastructure | Delays in road modernization (road and rail transport), insufficient infrastructure (linear and spot). |
Technological environment | Lack of funds for process automation, increase in IT spending with limited resources. |
Challenges 2020 | Detailed Description |
---|---|
Organizational environment | Accelerated consolidation of the TFL market, increased demand for warehousing services and “city” warehouses, increased demand for rail and intermodal services, “last mile” logistics, outsourcing on the basis of joint control, development of multi-channel and omni-channel sales, demand for premium services and dedicated solutions (3PL, 4PL), alternative drive vehicles, long road trains, increased availability of workforce, decreased pressure on wages, inter-branch integration, development of contract logistics. |
Technological environment | Dynamic development of e-commerce, digitization, automation, new technologies, fulfilment, development of own transport and trade platforms, storage systems integrated with customer sales systems. |
Macroeconomic environment | Shortening of the supply chain, relocation of part of production to Europe and Poland, established position of Polish carriers and TFL companies on the European market, increase in demand for TFL B2C services, favorable location of Poland at the crossroads of trade routes, increase in importance of the Silk Road and Poland–China trade, development of new markets |
Infrastructure | Improving the quality of road and rail infrastructure. |
legal environment | Deferral of changes in road transport regulation in the European Union. |
Threats 2020 | Detailed Description |
---|---|
Macroeconomic environment | Recession, economic crisis, decrease in production and consumption, increase in unemployment, inflation, decrease in liquidity, company bankruptcy, consolidation, isolationism, protectionism, restriction of free movement of goods across borders, decrease in international exchange, increase in environmental charges, road tolls, taxes, exchange rate fluctuations, increase in energy prices, Brexit, lengthening of supply chains, increase in competition from TFL companies from the East (Russia, Ukraine, Belarus), high dependence of the economy on the European Union market, uncertain political situation, decrease in import from China. |
Organizational environment | Notable consolidation in the industry, acquisitions of smaller and weaker companies, increase in bankruptcies and bankruptcies in the TFL industry, lack of professional drivers, qualified employees (office, warehouses workers, also rail transport workers), increase in competition, decrease in liquidity among customers (payment deferrals), shorter supply chains, access to shipping containers (uneven geographical distribution), increase in costs, decrease in profitability, development of intermodal transport (displaces road transport)—change in the share of individual branches in freight transport, expansion of ship owner activities |
Legal environment | Formal and legal obstacles imposed by Western European countries on Eastern European TFL companies, mobility package, legal restrictions related to the pandemic. |
Technological environment | Development of e-commerce and decrease in demand for transport from distribution centers to stationary sales points, development of freight exchanges, new technologies requiring financial investments. |
Infrastructure | Railway infrastructure. |
Challenge Categories in 2020 | Declared in 2018 | Declared in 2019 | Declared in 2020 |
---|---|---|---|
Infrastructure | Vehicle development, improvement of roads, expansion of seaports. | Modernization of railway infrastructure, construction of the Central Communication Port, investments in the Małaszewicze border crossing, transport nodes and road terminals | Improving the quality of road and rail infrastructure. |
Technological environment: Innovation | Innovation, AI, blockchain. | Industry 4.0, automation, robotization, electrical cars, car hybrids, drones, long road trains. | New technologies fulfilment. |
Technological environment: Digitization | The development of Internet commerce. | Development of Internet commerce, increased use of mobile devices, trading platforms, logistic platforms, modern warehouse management systems (WMS). | Dynamic development of e-commerce, digitization, automation, development of own transport and trading platforms, storage systems integrated with customer sales systems. |
Macroeconomic environment | Increase in society’s wealth, general economic growth in the EU, territorial expansion, entering other markets, potentially growing exports from PL, Silk Road as a direction with potential for Poland, development of EU economies, China, Germany, development of intermodal transport: rail transport in PL and outside, development of maritime transport. | Economic growth in the EU and the continuing high rate of GDP growth in Poland, Poland’s good position as a provider of TFL services to the EU market, increase in transit through Poland, Poland as a storage facility for global companies, increase in consumption, geographical location of Poland at the crossroads of trade routes, development of the automotive industry, increase in domestic distribution, development of the Silk Road and cooperation with China. | Shortening of the supply chain, relocation of part of production to Europe and Poland, established position of Polish carriers and TFL companies on the European market, increase in demand for TFL B2C services, favorable location of Poland at the crossroads of trade routes, increase in importance of the Silk Road and Poland–China trade, development of new markets. |
Legal environment | Brexit, changes in transport-related regulations in EU member states, increase in transport rates. | Elimination of restrictions on trade with Russia, new regulations to encourage the development of rail and intermodal transport, industry consolidation (M&A), Brexit (relocation of companies from the UK to the European Union). | Deferral of changes in road transport regulation in the European Union. |
Organizational environment | Consolidation, industry standards, offshoring. | Development of multi-channel sales, new business models (proximity retail), development of industry standards, horizontal cooperation in a limited scope (competition-logistics company-courier company). | Accelerated consolidation of the TFL market, increased demand for warehousing services and “city” warehouses, increased demand for rail and intermodal services, “last mile” logistics, outsourcing on the basis of joint control, development of multi-channel and omni-channel sales, demand for premium services and dedicated solutions (3PL, 4PL), alternative drive vehicles, long road trains, increased availability of workforce, decreased pressure on wages, inter-branch integration, development of contract logistics. |
Threats Categories in 2020 | Declared in 2018 | Declared in 2019 | Declared in 2020 |
---|---|---|---|
Infrastructure | traffic congestion, decreasing road and parking space capacity | Delays in road modernization (road and rail transport), insufficient infrastructure (linear and spot) | Railway infrastructure. |
Technological environment | Lack of funds for process automation, increase in IT spending with limited resources. | Development of e-commerce and decrease in demand for transport from distribution centers to stationary sales points, development of freight exchanges, new technologies requiring financial investments. | |
Macroeconomic environment | blockade of markets, nepotism, trade wars, the situation of German economy, low unemployment and rising wage expectations, exchange rate differences in international transport, rising labor costs, economic slowdown of EU and PL, Mobility Package, rising transport costs, saturated labor market in the industry, uncertain value of PLN, higher risk of currency exchange rate fluctuations against USD and EUR, and even lower margins on foreign sales, changes related to retirement age, problems with city logistics, rising fuel prices, political situation in Poland, political situation in Europe (Russia vs. EU vs Turkey), political factors hampering trade with Russia and Ukraine | Recession, decrease in consumption, increase in fiscal burdens on enterprises, greater connection between politics and business-negative impact, unstable political situation in Poland and in the world, high dependence of Poland on the macroeconomic situation in the world, increase in protectionism, competition from the Silk Road to the sea road, unstable situation on the sea freight market, decrease in the inflow of financial resources from EU funds. | Recession, economic crisis, decrease in production and consumption, increase in unemployment, inflation, decrease in liquidity, company bankruptcy, consolidation, isolationism, protectionism, restriction of free movement of goods across borders, decrease in international exchange, increase in environmental charges, road tolls, taxes, exchange rate fluctuations, increase in energy prices, Brexit, lengthening of supply chains, increase in competition from TFL companies from the East (Russia, Ukraine, Belarus), high dependence of the economy on the European Union market, uncertain political situation, decrease in import from China. |
Legal environment | unfavorable legal regulations, EU regulations, protectionism at the European level, introduction of minimum wages by successive EU member states, lack of reaction on the part of the Polish government to the problems of carriers, increasing bureaucracy, formal and legal obstacles imposed by Western countries, protectionism of the “old EU” countries towards the “new EU” countries, interference in the Polish market of “third countries”, changeability of Polish law, limitations for Polish carriers in Europe—MiLOG in Germany, Loi Macron in France or recently in Italy. | Legal regulations of the European Union, aimed at protecting its own market and limiting the access of non-resident carriers of particular countries, in particular the Mobility Package, instability of the Polish legal system, Brexit—border blockages, increase in administrative procedures; increase in fiscal burdens (taxes, costs of ship owner adaptation to new standards of sulfur content in marine fuel, increase in energy prices), lack of clear procedures when employing foreigners, restriction of access to city centers, regulations concerning environmental protection. | Formal and legal obstacles imposed by Western European countries on Eastern European TFL companies, mobility package, legal restrictions related to the pandemic. |
Organizational environment | lack of drivers, lack of workforce, constant problem with obtaining qualified staff, both office and warehouse workers and drivers, technological changes—more solutions that ignore traditional logistics operators, reduction of rates, leading to deterioration of service quality. | Shortage of skilled workers; shortage of drivers, warehouse workers; increased competition in the industry and outside the industry (Uber), the possibility of taking over the Polish TFL market by carriers from Russia, Belarus, Ukraine, new business models (cost pressure, price pressure), increase in wages, interception by global shipping line organizations, taking over the competence of freight forwarders, self-service logistics introduced by global players in the online trading market Delays in road modernization (road and rail transport), insufficient infrastructure (linear and spot). | Notable consolidation in the industry, acquisitions of smaller and weaker companies, increase in bankruptcies and bankruptcies in the TFL industry, lack of professional drivers, qualified employees (office, warehouses workers, also rail transport workers), increase in competition, decrease in liquidity among customers (payment deferrals), shorter supply chains, access to shipping containers (uneven geographical distribution), increase in costs, decrease in profitability, development of intermodal transport (displaces road transport)—change in the share of individual branches in freight transport, expansion of ship owner activities. |
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Brdulak, H.; Brdulak, A. Challenges and Threats Faced in 2020 by International Logistics Companies Operating on the Polish Market. Sustainability 2021, 13, 359. https://doi.org/10.3390/su13010359
Brdulak H, Brdulak A. Challenges and Threats Faced in 2020 by International Logistics Companies Operating on the Polish Market. Sustainability. 2021; 13(1):359. https://doi.org/10.3390/su13010359
Chicago/Turabian StyleBrdulak, Halina, and Anna Brdulak. 2021. "Challenges and Threats Faced in 2020 by International Logistics Companies Operating on the Polish Market" Sustainability 13, no. 1: 359. https://doi.org/10.3390/su13010359
APA StyleBrdulak, H., & Brdulak, A. (2021). Challenges and Threats Faced in 2020 by International Logistics Companies Operating on the Polish Market. Sustainability, 13(1), 359. https://doi.org/10.3390/su13010359