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The last few years have been tough for everyone, and for Europe’s freight forwarders, the future seems even more challenging. The big challenges ahead are due to new laws and regulations aimed at making businesses more environmentally friendly.
New Regulations are Coming Fast
European governments are putting a lot of effort into making businesses meet climate goals. This means that many new rules are being introduced quickly, and companies, especially forwarders, need to keep up or face penalties. These rules make it mandatory for businesses to report how their operations impact the environment, and forwarders part of the supply chain also need to make sure they follow these new standards. One big change is that forwarders could soon be indirect consequences for the environmental impact of goods they move.
One of the newest regulations is the Carbon Border Adjustment Mechanism (CBAM). This law will force companies that bring certain products into the EU to start reporting their carbon emissions, as of reporting obligations from 2025 and full implementation from 2026. The idea is to stop companies from moving production outside Europe just to avoid paying carbon taxes. But companies only have a short time to prepare, and there are still a lot of questions about how it will work in practice.
Impact on Freight Forwarders
The changing environmental rules are particularly hard on freight forwarders. They will need to start measuring and reporting the carbon footprint of their operations. This will likely be easier for larger companies, but small and medium-sized forwarders may struggle. Even if they don’t have to report their own emissions, their clients may ask them to, which could make things complicated. Plus, the different ways companies measure carbon emissions could lead to confusion and inconsistent results.
What Forwarders are Asking For
Freight forwarders are asking European policymakers to simplify these new regulations, especially for smaller businesses. They want the rules to be clear and practical so that everyone can follow them without spending too much money or time. It’s not just about environmental rules either—there are also new customs regulations being rolled out, like the updated Import Control System 2 (ICS2), which will requires more detailed information about goods entering the EU for both customs and security measures.
Balancing Environmental Goals and Business Needs
Europe’s leaders, like European Commission President Ursula von der Leyen, have done a good job focusing on important policies like decarbonization. But many in the freight industry feel the rules are coming too fast and without enough support for businesses to adapt. While it’s great that Europe has clear climate goals, the pace of these changes can be tough, especially for small businesses. Some wonder if it wouldn’t be better to incentivize businesses to become more environmentally friendly instead of just creating more rules.
In the end, Europe’s freight forwarders are facing some serious challenges. They will need to stay ahead of the new regulations and find ways to meet these environmental goals while keeping their businesses running smoothly. Ultimately, the success of Europe's decarbonization goals will depend on finding a balance between ambition and practicality.