The bankruptcy of transport company Ziegler not only marks the end of a historic name in Belgian logistics but also threatens to affect dozens of small transport companies behind the scenes.
Transport en Logistiek Vlaanderen (TVL), a professional organisation that represents some 1,500 transport and logistics companies, issued a statement on Tuesday, warning of far-reaching consequences for these smaller firms.
The CSC Transcom trade union announced that 282 of the 415 employees in Ziegler’s Belgian operations will keep their jobs thanks to takeovers.
However, TVL noted that media coverage has largely focused on the workers losing their jobs, while little attention has been given to the fallout for small transport companies and independent contractors who worked as subcontractors for Ziegler.
TVL CEO Johan Staes highlighted the ripple effects of large logistics companies collapsing. “When a major player disappears, part of the financial impact can spread throughout the transport chain,” he said.
According to a recent survey by TLV, one out of four transport companies had to deal with the bankruptcy of a client in the past year, while two out of five had unpaid invoices. Smaller operators, often with only a few vehicles, are particularly vulnerable to such losses.
TVL has proposed a policy solution allowing transport companies, under certain conditions, to directly approach the sender or recipient of goods if their immediate client defaults on payments.
“In France, they have regulations making this possible,” explained Staes. “We’re not necessarily advocating an exact replication of the French model, but we do call for serious discussions on how transport firms can be better protected against payment disputes and bankruptcies within the logistics chain.”
