Mediterranean Economies 2023
DOI: 10.1401/9788815411167/c7
7.Impact of the Russia-Ukraine war on
freight transport and logistics in Mediterranean countries by Pietro Evangelista, Tania Toffanin, Jamal El Baz and Jukka Hallikas
Notizie Autori
Pietro Evangelista CNR-ISMed, National Research Council,
Institute for Studies on the Mediterranean (evangelista@ismed.
cnr.it).
Notizie Autori
Tania Toffanin CNR-ISMed, National Research Council, Institute
for Studies on the Mediterranean (toffanin@ismed.cnr.it).
Notizie Autori
Jamal El Baz Ibn Zohr University, Morocco (j.elbaz@uiz.ac.ma).
Notizie Autori
Jukka Hallikas LUT University, Finland (Jukka.hallikas@lut.fi).
Abstract
In this chapter the focus shifts on
logistic issues, investigating the impact of the
Russia-Ukraine war on freight transport in the
Mediterranean area. It comes up in particular an
increasing difficulty of South Mediterranean
countries integrating in international supply chains
and adapting their transport systems to the changes
that have taken place in global logistics and supply
chain management.
Introduction
Freight transport and
logistics are essential components of global trade and commerce
and significantly add value to the Gross Domestic Product (GDP)
of a country. The transportation of goods across long distances
is made possible by an intricate web of transport
infrastructure, including roads, railways, waterways and
airways. The efficient cost-effective movement of goods is
critical to the success of businesses, manufacturers and
consumers alike [Gunasekaran, Lai and Cheng 2008]. Moreover,
efficient transport and logistics systems can contribute to a
country’s competitiveness [Kabak, Önsel Ekici and Ülengin 2020].
The most modern
approach in managing freight transport and logistics is supply
chain management (SCM). Cooper et al.
[1997] defined SCM as «…an integrative philosophy to manage the
total flow of a channel from earliest supplier of raw material
to the ultimate customer, and beyond».
The key element in
this management approach is the supply chain that may be defined
as a complex network of resources, people and companies that
«…collectively convert a basic commodity (upstream) into a
finished product (downstream) that is valued by end-customers,
and who manage the returns in each stage» [Harrison and van Hoek
2005].
The importance of the
supply chain approach in firms’ competitiveness has greatly
increased in recent decades to the extent that Christopher
[2016] argues that the competition today is between integrated
supply chains rather than individual companies. Thus, the
management of an integrated supply chain provides a number of
benefits such as shorter delivery times, more reliable delivery
promises, lower stock levels, fewer quality problems and stable
prices [Christopher 2016]. ¶{p. 236}
However, effective
supply chain management requires coordination and communication
between all stakeholders, including manufacturers, suppliers,
logistics service companies and retailers.
One of the most
significant challenges for freight transport and logistics in
today’s competitive market is the ever-increasing demand for
faster and more reliable delivery of products. With the rise of
e-commerce, consumers are now expecting quicker delivery times
than ever before [Pratap et al. 2022]. To
meet this demand, companies are adopting new technologies, such
as GPS tracking, to improve the efficiency and reliability of
deliveries [Evangelista and Sweeney 2014]. GPS tracking allows
transport companies to track shipments in real time, providing
them with accurate information about the location of the
shipment and the estimated delivery time. Autonomous vehicles
and drone delivery are other innovations that have the potential
to revolutionize the industry by making deliveries faster and
more cost-effective [Rai, Touami and Dablanc 2022].
Another challenge
facing freight transport and logistics activities is the need to
reduce their environmental impact [McKinnon 2018]. The
transportation and logistics industry is responsible for a
significant portion of global greenhouse gas emissions, making
it a key contributor to climate change [Evangelista et
al. 2019]. Many logistics service
providers are adopting sustainable practices to reduce their
carbon footprint by using electric or hybrid vehicles, investing
in renewable energy and reducing waste [Sureeyatanapas,
Poophiukhok and Pathumnakul 2018]. Electric or hybrid vehicles
produce fewer emissions than traditional gasoline or
diesel-powered vehicles, and investing in renewable energy
reduces the reliance on fossil fuels. Reducing waste is another
important sustainable practice that can have a significant
impact on the environment.
Despite the
challenges faced by the industry, the future of freight
transport and logistics looks promising. With new technologies
and sustainable practices, the industry has the potential to
become more efficient and environmentally responsible
[Evangelista and Hallikas 2022].
Sustainable
practices and investment in renewable energy can also reduce the
industry’s environmental impact. In addition, the adoption of
new technologies has the potential to improve delivery times and
reduce costs. As global trade and commerce
¶{p. 237}continue to grow, the importance of
freight transport and logistics will only continue to increase.
Freight transport
and logistics are also central activities for the economic
development of countries, particularly those in the
Mediterranean region. The Mediterranean area has been a hub of
trade and commerce for centuries, connecting Europe, Asia and
Africa. However, the countries in the region face unique
challenges due to their diverse geography, political instability
and economic disparities.
During the past
decade, most Mediterranean countries have seen a period of
negative economic growth and turbulence affecting their business
environment. In addition, the COVID-19 pandemic and the war in
Ukraine have aggravated economic conditions in the Mediterranean
[Zibaoui 2021], affecting logistics and supply chains in many
ways [Paché 2022]. Therefore, it is important to analyse the
impacts of such catastrophic events on freight transport and
logistics in Mediterranean countries. We focus on the effects of
the Russia-Ukraine war on agriculture and agrifood supply chains
in which the Mediterranean region plays a leading role. This
sector had been challenged by the COVID-19 pandemic prior to the
conflict in question. Consequently, it is useful to analyse how
this conflict is affecting the Mediterranean agrifood sector.
This chapter explores the impacts of the war between Russia and
Ukraine on freight transport and logistics in the Mediterranean
area.
Following this
introduction, the next section discusses the main challenges of
freight transport and logistics in the Mediterranean area.
Section 2 presents an overview of the possible impacts of war
between Russia and Ukraine on transport and logistics in the
Mediterranean region. Section 3 provides a focus on the impact
of war on food supply chain in Mediterranean countries. The
final section outlines some concluding remarks and reflections
on possible actions to mitigate the negative consequences of
current and future catastrophic events.
1. Freight transport and logistics challenges in the Mediterranean area
In recent years,
rapid changes in technology and globalization have radically
changed the way companies operate, giving rise
¶{p. 238}to more volatile markets, more intense
competition and rising demand for customized products and
services with shorter life cycles. The effects of these changes
have been further exacerbated by recent catastrophic events,
namely the COVID-19 pandemic and, since February 2022, by the
war between Russia and Ukraine.
Freight transport in
the Mediterranean has historically been dominated by maritime
transport due to the region’s central location between Europe,
Asia and Africa. Maritime routes across the Mediterranean have
been used for trade since ancient times, and today they are
still one of the most important transport routes for
international trade. In addition to maritime transport, the
Mediterranean countries are also important for land transport
due to their position as a link between Europe, Asia and Africa.
The Mediterranean
region is one of the world’s major routes for freight transport,
with a large volume of traffic passing through its ports every
year. Mediterranean countries, particularly those in southern
Europe and North Africa, are important players in the global
supply chain.
Despite the
strategic location of the Mediterranean region that makes it
crucial for international trade, the management of freight
transport and logistics creates many challenges for
Mediterranean countries due to geopolitical and economic issues.
Moreover, catastrophic events have increased the pressure on the
countries concerned, making it harder for them to be integrated
in the international economy and thus participate in
international trade and supply chains.
In particular, there
has been an increase in the disparities between the countries on
the southern shore of the Mediterranean and their European
counterparts in terms of the development and level of
sophistication of their transport and logistics systems. This is
mainly due to poor logistics infrastructures of Southern
Mediterranean countries, as most ports, airports and road
transport systems have not yet attained an adequate level of
modernisation and technology. There is also a lack of a
regulatory framework for reforms and restructuring of the
logistics sector. Finally, there are still bottlenecks in border
controls and bureaucratic customs clearance procedures in such
countries.
It is well known
that the efficiency and performance of logistics and transport
systems affect national competitiveness. In order to gauge the
efficiency of the logistics and transport systems of
¶{p. 239}the Mediterranean countries, it is
possible to use the Logistics Performance Index (LPI) provided
by the World Bank database. The LPI can be used to measure the
performance of a country’s logistics system [Arvis et
al. 2014]. It can be considered an
indirect measure of the competitiveness of national transport
and logistics and systems providing a multidimensional
qualitative evaluation of six dimensions which allow relevant
aspects of the logistics system to be captured under a single
aggregate score [Lo Storto and Evangelista 2023]. The six
dimensions are as follows: 1) customs, 2) infrastructure, 3)
international shipments, 4) logistics quality, 5) tracking and
tracing, 6) timeliness.
For every country,
each dimension is evaluated by utilising a set of questions
assessed on a 5-point scale. The measurements of the LPI related
to 160 countries are calculated biennially by the World Bank,
giving the opportunity to compare countries over time. For this
reason, the LPI is extensively employed by scholars to conduct
benchmarking studies in international logistics [Bugarcic,
Skvarciany and Stanisic 2020; Karaduman et
al. 2020; Su and Ke 2017; Wang and Choi
2018]. In table 1 the 2018
¶{p. 240}LPI ranking
is reported for both EU and non-EU Mediterranean countries for
the purpose of comparison.