Conference Days 2022: Energy prices put pressure on industries

Reflecting on the discussions of the past Conference Days, Rainer Langhammer, Managing Director of HUSS VERLAG, wanted to do just that at the closing event on Friday, April 1, 2022.

"We have very, very successfully completed over 50 sessions on three stages in ten days," said the Managing Director.

It was a colorful bouquet of topics that presenters, guests, and companies showcased on the three stages of the Conference Days. Langhammer discussed the essence that could be drawn from it with Logistik Heute editor Gunnar Knüpfer, Nadine Bradl, deputy editor-in-chief of Transport newspaper, and Vision Mobility's editor-in-chief, Gregor Soller. Looking back, he initially asked:

"Supply chains in times of crisis: Back to the Roots? Is production returning to Europe?"

In the medium term, this could indeed happen, replied Knüpfer, even though nothing of the sort had been felt during the Corona pandemic. However, a certain trend is now emerging. He emphasized once again how great the pressure on supply chains is at the moment. For instance, a renewed lockdown in Shanghai is putting pressure on supply chains in Asia. And things aren't running smoothly in Eastern Europe either.

"The war in Ukraine means that trade and transportation to Russia are largely suspended."

The issue of energy deliveries from Russia could also become critical. In this situation, a shift of production to Europe is emerging in the medium term. As an example, Knüpfer mentioned Intel. The chip manufacturer is currently planning a production plant in Germany and also wants to invest in other European countries. Tesla's Giga-Factoy near Berlin also gives certain hints. Knüpfer expects investments in energy production in Germany so that Germany becomes less dependent on Russian gas and oil supplies.

Nadine Bradl then stepped into the breach for the professional drivers. She addressed the controversially discussed thesis:

"EU Mobility Package: Are German professional drivers being left behind?"

Yes, thinks the deputy editor-in-chief of the newspaper Transport. The EU is trying to put the cart before the horse.

"Drivers are no longer allowed to spend their breaks in the truck. But there is a clear lack of alternatives," she criticized.

There are too few inns that are affordable, located near the highway, and have parking spaces for trucks. The parking infrastructure is also quite poor. In contrast, many drivers of local companies have new and nice trucks.

"They feel comfortable in them. Perhaps more comfortable than in a cheap inn."

For many of these truckers, their truck is also their living room, accordingly, they have furnished the trucks.

"But now they are not allowed to stay in their living room."

However, the primary goal of the EU Mobility Package – to protect foreign drivers from exploitation – is not being achieved. There is a lack of the necessary controls and sanctions for companies that do not comply with the regulations.

Bradl criticizes that some of the regulations in the Mobility Package also miss the reality. For instance, the return obligation simply leads to companies opening locations in Germany, where the trucks are then registered.

It is good that this EU Mobility Package, which so many countries had to agree to, has been created. It now has to prove itself in practice, finally quoted Bradl from Udo Schiefner. The SPD politician had expressed himself in the discussion with the newspaper Transport on the Truck & Bus stage accordingly. But what good is it if it cannot be controlled, Bradl added.

"So first, the infrastructure must be created so that the drivers can feel comfortable, even if they are on the road for a longer period."

Bradl especially understands this to mean clean and safe truck parking spaces with toilets and sanitary facilities.

The German professional driver in a well-equipped truck certainly has it nicer than at some rest stops, Langhammer agreed, before turning to Gregor Soller with a new question.

"Electromobility boost due to energy price explosion: Why is green electricity also getting more expensive?"

That is related to trading on the electricity exchanges, Soller explained. This leads to energy in general becoming more expensive whenever the price of oil, coal, and gas rises. Therefore, we will likely have to live with the high prices as long as we get a large part of our energy from Russia. Soller sees only one way out:

"If we decouple, then we will no longer have to accept the high prices."

This is only possible if we expand renewable energies. However, that will probably take a while. In the meantime, according to Soller’s forecast, energy prices will remain high. If supply chains then falter, it will drive prices even higher, Knüpfer interjects.

"And we are only at the beginning of the problems with the supply chains."

We must prepare for further deterioration, said the Logistics Today editor. He therefore expects energy prices to continue rising.