Surge in Refugees Adding Billions of Increased Costs to Europe's Supply Chains

Strikes and migrant activity near the port and Channel Tunnel entrance cost the UK an estimated $1 billion

The Loadstar

Nov. 18, 2015—The surge in refugees coming into Europe fleeing wars in the Middle East and Afghanistan has prompted “an unprecedented disruption” to supply chains.

The latest Supply Chain Security Risk Index from the British Standards Institution (BSI) Supply China Solutions division shows that, in September, Europe saw the highest number of border closures since the Schengen Agreement was signed in 1995, with previously open borders across Europefrom Scandinavia to the Balkansclosed to try and stem migrant flows.

“With the number of families and individuals displaced by war across Africa and the Middle East growing 50 percent year on year, BSI warns that costs to international shippers will continue to rise,” the company said.

It noted that the most serious interruptions had been seen around Calais, where a combination of strikes and migrant activity near the port and Channel Tunnel entrance cost the UK economy an estimated $1 billionwith delays and stoppages costing UK shippers around $1.2 million and Dutch shippers around $545,000 each day.

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