Strikes on the Polish-Ukrainian border have been going on for more than four months, making it difficult and sometimes impossible for trucks to cross the border. The protesters’ actions, which impede the free movement of goods, create additional challenges for businesses in Ukraine, which are already burdened by the realities of wartime.
Overall, 67% of EBA member companies’ top managers surveyed reported that their businesses have experienced the effects of strikes at Polish-Ukrainian border crossing points.
According to 36 participants of the EBA’s special survey, the total cumulative amount of losses since the beginning of the strikes has amounted to at least EUR 24.8 million. In terms of one company, this is almost 700 thousand euros of losses on average.
Strikes have had a significant impact on logistics costs. Thus, 98% of the surveyed companies report an increase in prices for 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 a price increase of more than 100%.
At the same time, more than half, namely 57% of the surveyed companies, lost orders due to the border blockade. On average, companies experienced a 25% drop in orders. In addition, strikes have negatively affected the plans of half of the surveyed companies to expand or develop their business.
It is worth noting that strikes affect both exporters and importers. Among the companies that took part in the survey, 66% are engaged in exports and 91% in imports.
In addition to direct financial losses, companies report the negative impact of strikes on current and future contracts, damage to business reputation, threats to the food supply, supply chain disruption, price increases, reduced competitiveness, increased warehouse costs, and overloading of warehouses, the threat of production stoppages and even closure of enterprises.
For reference:
The news article uses data from the Business during the War survey, which was attended by 94 top managers of the EBA member companies, and a special survey on the economic impact of strikes on business, which was attended by specialists from 44 EBA member companies. The surveys were conducted in February-March 2024.
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