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Logistics operators in Spain: what they face

We have recently talked about some of the challenges faced by logistics operators in Spain, but focusing more on the operational part. In this article we want to approach other battles that the transport sector is going through, but further away from these concepts.

Challenges for logistics operators in Spain
Atomization

When it is said that logistics operators in Spain are fragmented, what is meant is that there are a very large number of companies, and that some of them are small, with a reduced number of vehicles.

The criticism in this case is due to the fact that this composition makes it difficult to optimize routes. Very small companies find it difficult to achieve optimization in their transits and sometimes it leads to price competition that is not supported by an improvement in costs, but by the simple reduction in profit margins.

Fenadismer, the National Federation of Transport Associations of Spain, claimed at the beginning of this year that, after a decrease in fragmentation in recent times, the new Land Transport Regulations had led to a change in trend, due to the disappearance of the minimum fleet requirement contained in the legislation. “It has increased by 1,257 new one-vehicle companies and 2,836 two-vehicle companies. In fact, these microenterprises represent 71% of the companies in the sector”, they assured from the organization.

delinquency

Traditionally, logistics operators in Spain have had late payment as an endemic evil in the sector. The coronavirus has not helped to alleviate the situation either and the months after the confinement have seen the real payment term increase.

Specifically, in May an average payment period of 88 days was reached, a figure that was not so high since September 2017. It must be remembered that, by law, the maximum payment period cannot exceed 60 days. Which means that in that month, 75% of the payments made to logistics operators in Spain were made beyond what is legally required. In May, and since the start of the pandemic, the delay in non-payments had increased by 13%.

Mailbox companies among logistics operators in Spain

Mailbox companies are known as those companies that do not have real activity in their country of origin, in which they have their headquarters, but that carry out their activity in third countries of the European Union. The objective of these companies is to be able to take advantage of the working conditions of the countries of origin, in which the workers are paid less, to compete in unequal conditions with respect to the workers and companies of the country in which they carry out the activity.

Both the European Union and the Government of Spain have expressed concern about this phenomenon. The existence of these mailbox companies have led to the creation of the European Road Alliance, made up of nine countries and to which Spain joined in 2018.

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