While Europe and the rest of the world contemplates what the next steps are for Greece following the NO vote, companies in the logistics industry are considering the impact to the overall supply chain. “Business as usual” is no longer valid, banks are temporarily shutting down to prevent money flowing out of the country and the fate of the Euro as a national currency remains uncertain.
While Greek-owned merchant fleet remains one of the world’s biggest, this provides little help to the overall economy
For instance 40 Greek shipping companies control 9.18 % of world’s tonnage, followed by Japan and China. But these companies, mostly trading in dollars, are only nominally Greek as they pay virtually no tax in their home country (there is an ongoing dispute on this) and therefore will hardly be affected by troubles with Euro.
DHL and UPS explain that their experience in operating in a number of very unstable regions helps them to carefully manage their position in Greece.
With supply chain infrastructure remaining largely unaffected, Greek companies now have a very limited access to capital and ability to get supplies. If the uncertainty continues regional supply chain network will be restructured shifting towards alternative sources like Turkey for agricultural produce within months. Considering the adaptability of modern supply chain management due to large number of 3PL providers operating in the region this can start happening within weeks.
Greece is very dependent on their import supply chain (less than 1/3rd of GDP comes from exports) so lack of finance and more importantly lack of confidence in their economy will inevitably shift suppliers to other less worrisome areas. Greece could find itself very quickly in a cash only position that leads in only one direction.