European Logistics Firms Navigate Falling Freight Rates and Overcapacity

AJOT reports European logistics sector grappling with depressed freight rates as overcapacity and weak demand compress margins. Container shipping rates from Asia to Europe decline significantly while road freight rates soften across continental markets. Major carriers adapt strategies focusing on value-added services and operational efficiency to maintain profitability. Lower freight costs benefit shippers with reduced logistics expenses for European warehouses. However, service quality may decline as carriers cut costs. Companies should balance cost savings with reliability requirements, especially for critical holiday season shipments. Monitor carrier financial stability to avoid potential service disruptions.
-opportunity, delay (DE)

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