26 June 2023 – Good news for the manufacturing sector in Europe. Energy prices have fallen by more than 60% in some cases compared to the previous year. EU has adopted the 11th sanctions package against Russia. And for companies, it is a good idea to make sure they have enough transport capacity for the coming months.
European energy prices down to early 2022 levels
Good news for European energy consumers, especially in the manufacturing sector, who are suffering from steadily rising energy costs from March 2022 onwards.
The price of North Sea Brent oil is back at around $73 per barrel, pretty much at the level of January 2022. All price increases as a result of the Russia-Ukraine war – more than 60% in the meantime – have been levelled out.
Energy prices across Europe have fallen by more than 60% in some cases
The energy prices in the various EU countries show a similar picture. In Spain, energy prices have dropped by about 47% compared to the previous year, in Germany by 53%, in Italy by 55%, and in France and Finland even by about 60%.
Easing energy cost pressures should therefore make the downstream industry and its customers more positive and drive demand in the EU.
EU adopts 11 sanctions package against Russia
The EU has adopted the 11th sanctions package against Russia. In addition to new anti-circumvention measures, further measures were adopted with regard to iron and steel products. Importers are now obliged to prove that iron and steel products imported into the EU from third countries do not contain prohibited steel precursors from Russia.
This is another indication of how important it is to work with reliable suppliers and traders when importing into the European Union and to avoid criminal consequences.
EU logistics capacity sufficient for the next months?
Due to a shortage of equipment and truck drivers, the European logistics industry is facing capacity challenges, particularly in finished vehicle logistics (FVL). Although container rates have returned to pre-pandemic levels, many FVL providers are operating with low margins or losses due to fixed-price contracts. This makes it difficult for them to invest in expanding capacity. Shipping lines are ordering new vessels and some car manufacturers are securing their own capacity to cope with the crisis.
Audi is already exploring sustainable solutions, such as increasing the use of rail transport powered by renewable energy. Navigating the changing industry landscape requires strategic partnerships and flexibility. As the inventory situation is similar in other industries, the demand for containers and ships is likely to increase.
Keep a close eye on logistics capacity
Companies in the EU will need to keep a close eye on logistics capacity and prices as demand is expected to increase in the coming months, as this could be crucial for the movement of finished goods and raw materials for production in the coming months. It is a good idea for companies to make sure they have sufficient transport capacity for the coming months
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Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.
