A majority of EBA member companies have experienced repercussions stemming from the strikes at Polish-Ukrainian checkpoints. Survey data conducted by the association supports this claim, reports EBA.
“In general, 67% of the surveyed top managers of member companies of the EBA reported that their business felt the consequences of the strikes at the Polish-Ukrainian checkpoints,” the report says.
In particular, according to the data of 36 participants of a special survey, the total cumulative amount of losses since the beginning of the strikes reached at least 24.8 million EUR. On average, this translates to nearly 700,000 EUR in losses per company.
“The strikes significantly affected the cost of logistics. Thus, 98% of surveyed companies report an increase in prices for product transportation services. At the same time, 23% of companies report a price increase of up to 50%, 32% – an increase of 50-75% and 25% – an increase of 75-100%. And 16% of respondents reported an increase in prices by more than 100%,” the EBA added.
At the same time, more than half, namely 57% of the surveyed companies, lost orders due to the border blocking. On average, companies experienced a 25% drop in orders. In addition, the strikes negatively impacted the plans of half of the surveyed companies to expand or develop their business.
It is worth noting that strikes influenced the activities of both exporters and importers. Among the companies that participated in the survey, 66% conducted export activities and 91% conducted import operations.
“In addition to direct financial losses, companies report the negative impact of strikes on current and future company contracts, damage to business reputation, threat to food security, disruption of supply chains, rising prices and reduced competitiveness, rising warehousing costs and overloading of warehouses, the threat of production shutdowns and even closure of enterprises”, the message summarizes. (APK-Inform/Business World Magazine)
