A spike in activism and fuel theft – a clear and present danger to manufacturers and logistics providers
Line of trucks seen on Madrid's highway during protests. Image: Alamy.com
19 April 2022
The Ukraine conflict affects all part of supply chain, both regionally in Europe and around the world. The rising threats consist of fuel siphoning, violent protests and delays at border crossing points.
By Steve Bacot, LandRisk Manager
The spark that lit the fuse
The ongoing Ukraine conflict has compounded the recent phenomenon of climate activism protests and led to strike action by the transport sector over rising fuel costs. There have also been protests at some state border crossing points by Ukraine anti-war protesters. It has also led to a spike in the ever present threat of fuel siphoning from parked trucks and logistics facility fuel storage tanks.
These issues are having a direct impact on the supply chain. They hit logistics operators particularly hard and also the manufacturers they support in the form of rising costs and direct or indirect disruption through strike action by transport sector workers, climate change activists and anti-war protesters.
The loss of Ukrainian truck drivers who have returned home to Ukraine to fight or care for their families has also impacted some logistics operators.
Diesel fuel - the new ‘liquid gold’
Fuel prices were high before the Ukrainian conflict exploded on 24 February. EU sanctions, the uncertainty of the first major conflict in Europe in 30 years and the resultant disruption to maritime and land-based supply chains has led to a spike in fuel prices.
Crippling fuel prices have led to strike action by desperate hauliers and introduced a new ‘happy time’ for criminals who can now make even more cash on the back of stolen diesel. Cargo theft criminals have always been active in Europe. However, the high cost for what some media sources have termed ‘liquid gold’ (diesel) has made fuel theft another attractive revenue stream for criminal gangs. Diesel fuel can also be resold easily by criminals to their existing networks but also to individuals not normally connected to criminal enterprise but who are feeling the pinch of the current fuel prices.
Activism - a potent weapon for various causes and the supply chain is easy prey
Climate change will remain high on the political agenda and has been aggressively supported by various climate activist groups. Activism incidents have increased following the UN Climate Change Conference of the Parties (COP26) in Glasgow in October/November 2021. Protests took place in the UK and mainland Europe where climate activists deliberately targeted the supply chain due to the impact and media attention it drew to their cause.
The EU sanctions against Russia may lead to the use of more fossil fuels in the short term as western states scramble to replace oil and gas supplies from Russia. This has sharpened the focus on the debate and use of environmentally friendly energy sources. The media focus has galvanised climate activist groups who have targeting the remaining imports of Russian fuel and resumed protests on major transit routes and other commercial facilities.
The current situation has created the perfect storm for manufacturers and logistics providers still adjusting to the new normal following the supply chain disruptions caused by the COVID-19 pandemic.
There have been a number of protests that have recently impacted the supply chain.
Spanish transport sector strike 14 March 02 April 2022
The recent Spanish Transport Sector strike is an example of a rapidly escalating protest that had a dramatic impact on the Spanish supply chain. It culminated in a multibillion Euro government financial aid package including subsidies for the commercial use of diesel fuel.
Various protests had been taking place in Spain and Italy over fuel prices but the impact in Spain was sudden and demanded rapid action on behalf of law enforcement and the government.
Of particular concern during this protest was not only its rapid onset and scope (practically nationwide), but the violet nature of some of the striking pickets that targeted main transit routes and commercial facilities. This included violence against truck drivers and deliberate damage to trucks of those companies still operating. This led to arrests and the mobilisation of thousands of police and civil guard officers to escort convoys of trucks through the worst affected areas.
TAPA EMEA Conference:
Join Steve Bacot on 7 June in Amsterdam
Our LandRisk Manager, Steve Bacot, will be one of the speakers at the TAPA EMEA Conference on the 7th of June. You can attend his presentation at 14:10 CEST. He will be discussing about the wide spectrum of threats currently facing logistics operators - and how to mitigate against them.