In 2023, Germany's logistics market hit €327 billion, with 3.3 million employed. Following automotive and retail, it's Germany's third-largest sector. Logistic service providers made nearly 50% of the revenue, while shippers contributed over half.
Despite its economic significance, German policies like the Supply Chain Act aim to curb the industry. This law mandates companies to uphold human rights and environmental standards in their supply chains.
However, the reality hits hard, especially for large firms. Penalties are severe for those breaching human rights, defined for companies with over 500 employees and €150 million in revenue. Non-EU firms meeting similar criteria face penalties if they generate €300 million in EU revenue three years post-law enforcement.
This translates into more bureaucracy, pleasing foreign competitors but worrying domestic experts. Many suppliers in developing countries aren't ready for EU standards, causing European companies to retreat.
Whether through tolls, supply chain laws, or climate regulations, Germany seems determined to shrink the industry. However, logistics remains vital, regardless of political decisions. Leaders lacking economic insight only accelerate the decline of a once-great economy.
21 sats \ 1 reply \ @nym 14 Apr
Germany has always been brilliant at engineering, but lackluster in leadership.
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That's the past. Now they are the leader in climate bs morals
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