ECG — 2025-06-11
News from ECG
Wolfgang Göbel, President of ECG, concluded that the FVL market is facing a more or less flat volume outlook, seeking for efficiencies in the near future.
Prof. Dr Alexander Sandkamp, Fellow, Kiel Institute for the World Economy, analysed the global economic situation from a general and automotive industry perspective. He emphasised the growing challenge of protectionism and high levels of uncertainty, making it increasingly difficult for companies to navigate international trade. He noted that the United States remains the most important national trading partner, accounting for 21% of new exports last year—a sign of the country’s continuing dominance. However, he also pointed out that there are ways to compensate for lost trade, including forging new trade agreements and strengthening focus on the EU market.
”We must remember that the EU internal market is strong and vital. 60% of the trade is EU internal, which reduces dependence on China. There’s still a lot we can do. The single market is incomplete, especially in the services sector.”, Alexander Sandkamp said and continued.
”One example is the physical transportation infrastructure in Europe, especially rail, which can be improved and create added value and the recognition of professional qualifications from other countries. There’s much room for improvement.”
Justin Cox, Director, Global Production, GlobalData, delivered a cautious outlook for the European and global markets. Despite his efforts to identify positive trends, he acknowledged the challenging conditions.
”We expect about 1.7% contraction in the European market this year. There’s a bright spot in Spain showing relatively strong economic growth, compared to elsewhere where economic headwinds remain”, Justin Cox said.
One encouraging sign was the growth of battery electric vehicle (BEV) sales.
”In the first quarter of the year sales were up by 30%, compared to the same quarter last year. That’s a sharp rise, especially considering sales were up only 6% during the same quarter the previous year”, Justin Cox continued.
Cox stated that European-built vehicles account for approximately 6% of US sales, about 900,000 units a year, although exposure varies by OEM. He cautioned that the full-year 2025 forecast would impact premium manufacturers the most.
Forecasting a contraction of around 0.5% for the year, Cox warned against over-optimism.
”Don’t get carried away with this growth. Much of it is due to base effects and distortions that began in 2023. It’s still a weak number. When compared to 2017/2018 levels, Europe is producing 5 million fewer units”, he said.
Jean Christophe Deville, Vice President of Supply Chain, Toyota Motor Europe, and Anike Murrenhoff, Deputy Head of Intralogistics and IT Planning, Fraunhofer Institute for Material Flow and Logistics, discussed the use of AI, artificial intelligence, in the industry. A separate article about AI can be found here.
ECG Academy’s Innovation Lab team presented their research on the transferability theoretical concept, exploring how AI container yard management systems could be adopted to FVL compound management. While not a developed solution, the project examined the potential of applying existing technologies from other sectors to the FVL industry aiming to maximise efficiency. Drawing on successful case studies, the team highlighted a promising pathway to increased efficiency, sustainability and agility in the FVL compound management. The now alumni looked closer at the effect of a container yard management solution and compared two ports as a case study. The system is processed and analysed by using AI to compound management solutions, implementing data on the vehicle forwarder, loadings, information about damages, weather forecasts and prices. The output was a real-time decision on how to utilise the space, optimise the use of resources, reduce the risk of damages and increase the sustainability of the operations.
On 16-17 October, the biggest FVL event in Europe, the ECG Conference will be held in Amsterdam. Don’t forget to block your calendar!