Brilliance in Resilience Part 1: Navigating Supply Chain Disruptions

In the most turbulent times, European businesses are grappling with an overwhelming number of crises, particularly in specific industries. From pandemics to geopolitical conflicts, the challenges seem relentless. How can companies survive, adapt, evolve, and thrive in such turbulent times? The answer lies in building organizational resilience. In this first blog of the Brilliance in Resilience series, we focus on one of the most significant challenges currently affecting European businesses: supply chain disruptions.

A new reality: crisis after crisis

The global business environment has become increasingly volatile in a world where crises occur back to back. Disruptions now come in many forms: industrial shifts, digital transformations, and micro and macroeconomic shocks. As one of the CEOs we interviewed aptly noted:

Following the global recovery from the COVID-19 pandemic, the war in Ukraine exacerbated the fragile state of supply chains across Europe. Companies now face logistical breakdowns, material shortages, and a tightening talent market, each challenge compounding the next.

The five major disruptions in transportation and logistics

The transportation and logistics sector is particularly vulnerable as European businesses try to find their way in these turbulent waters. The top five disruptions facing this sector today are:

Let’s explain them a bit further.

1. Port congestion

Port congestion remains a significant obstacle, with terminals overwhelmed and container ships unable to load or unload efficiently. Statista data shows that average container ship delays have doubled from four days in 2018 to eight days in 2022. This bottleneck, exacerbated by recent lockdowns in China and stranded Russia-bound containers, has pushed global port congestion to near-peak levels.

2. Container shortages

In the past few years, uneven distribution of sea cargo has led to severe container shortages, driving up prices. According to the HARPEX index, shipping rates 2022 are almost ten times higher than just two years ago. The combination of port congestion and container shortages is causing unprecedented delays and cost increases.

3. Soaring fuel prices

Geopolitical developments, particularly the sudden cutoff of energy supplies from Russia, have driven fuel prices to new heights. The resulting cost pressures are squeezing businesses, and the workforce has been significantly impacted—14.5% of the global shipping workforce consists of Russian and Ukrainian seafarers, further complicating operations.

4. Labour market shortages

Labour shortages, particularly in transportation and logistics, have only intensified since the start of the Russo-Ukrainian war. Even before the conflict, Europe faced a shortage of nearly half a million truck drivers—10% of the total workforce in this sector. As of 2024, the gap has widened to over 233,000 unfilled positions across the EU, UK, and Norway. Without substantial intervention, this shortfall is projected to grow to 745,000 by 2028, mainly due to an aging workforce, with one-third of current drivers expected to retire in the next decade.

The International Road Transport Union (IRU) reports that recruitment remains challenging despite efforts to increase salaries—often up to 55% higher than the national minimum wage. The average European truck driver is now 47, with less than 5% of drivers under 25. Furthermore, women comprise just 4% of the workforce, underscoring the need for more inclusive recruitment strategies.

5. Routing constraints

Beyond workforce issues, external factors such as adverse weather conditions, traffic disruptions, and receiver availability have placed additional strain on commercial transportation. One CEO we interviewed shared this insight:

Resilience through adaptation

Faced with these challenges, companies must enhance their forecasting accuracy and develop contingency plans for disruptive events. The complexity of today’s supply chain environment demands an agile approach that combines defensive strategies to survive immediate shocks and offensive strategies to seize future opportunities.

This balance is key to building a resilient organization. In our next blog, we will explore how digital innovation in the Manufaturing sector is pivotal in enhancing resilience and helping businesses survive and thrive in this new era of disruption.

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Stay Informed! Read the next blog Part 2 in our Brilliance in Resilience series, where we take a closer look at manufacturing disruptions in turbulent times and explore strategies to build resilience in this critical sector. Don’t miss out!

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