European emergency response to energy crisis: Logistics sector faces 'slow steaming' and speed limits

To deal with a looming fuel shortage, the European Commission this week recommended a drastic package of cost-cutting measures. The ongoing blockade of the Strait of Hormuz is putting severe pressure on the supply of crude oil and LNG. The Commission is now calling on member states to reduce the speed of both trucks and ocean-going vessels to directly dampen fuel consumption.

Operational delay as a contingency

The plans, leaked prematurely via Politico, explicitly look at the transportation sector as a major consumer of fossil fuels. Although there are currently no physical shortages of diesel or kerosene, Brussels wants to avoid a scenario of rationing with these preventive steps.

Key suggested measures are:

- Road transport: Lowering the speed limit for truck traffic.
- Maritime: The reintroduction of slow steaming for commercial shipping.
- Last-mile: Intensifying the use of freight bicycles in urban areas.
- Social: Encouraging home working and possible car-free days to relieve pressure on diesel supplies.

Tension between efficiency and feasibility

The advice to drive and ship slower is not uncontroversial. Earlier this year, industry associations such as TLN warned that the sector is already putting maximum effort into fuel-efficient driving (so-called Eco-driving). A further reduction in speed has direct consequences for rotation schedules and the employability of drivers, which could lead to new bottlenecks in a tight labor market.

Moreover, the current crisis in the Strait of Hormuz is already causing longer shipping times due to detour. If ships are now also required to slow down, the lead time for international shipments will be further stretched, putting additional pressure on the inventory positions of European companies.

How Neele-Vat supports you with energy challenges and regulations

As your logistics director, Neele-Vat understands that European advice can quickly transform into national regulations. In a market where fuel availability and speed can no longer be taken for granted, our independent 4PL approach helps you stay resilient.

We concretely support our relationships by:

- Optimization of sailing and driving schedules: We calculate the impact of slower speeds on your entire supply chain. By recalibrating departure and arrival times in a timely manner, we prevent "slow steaming" from leading to an "out-of-stock" situation in your warehouse.

- Multimodal shifts: When road transport is pressured by fuel constraints, we switch directly to our fixed capacity on the European rail network. Train transport is significantly more energy efficient and offers a stable alternative for long-distance routes.

- Deployment of our sustainable in-house fleet: Neele-Vat is continuously investing in the latest generation of tractors and electric trucks. These assets are already optimized for minimal consumption, which allows us to continue to offer the highest efficiency within the applicable frameworks.

- Strategic inventory management: In our warehouses at Maasvlakte and other strategic locations, we help you build buffer stocks. This allows you to absorb the longer transit times caused by European cost-cutting measures.

- Real-time fuel monitoring: We closely monitor fluctuations in diesel surcharges and government measures, so you always have a transparent picture of your integral logistics costs through our reports.

Worried about the impact of the European cost-cutting plans on your distribution network? Our experts are ready to review your current logistics flow and, where necessary, adapt it to the new reality of "less and slower.

Contact our planners for a scenario analysis and find out how we keep your goods flow moving, regardless of speed.