Salvatore Capasso, Giovanni Canitano (a cura di)
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.