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  July 26th, 2024 | Written by

French Logistics Sector Faces Challenges Ahead of Paris Olympics Opening Ceremony

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Fears that the Paris Olympic and Paralympic Games could be disrupted by industrial action in the transport sector have been alleviated, shifting focus to the promise of a grandiose and unique show for audiences worldwide. The centerpiece is an 85-strong flotilla of vessels on the river Seine, carrying delegations from more than 200 countries.

French authorities acted swiftly to mitigate any risk of labor unrest that could disrupt the first Olympiad held in the country in a century. Unions at state railway SNCF had threatened to strike during the event to push their demands over pay and working conditions, but a deal over bonuses several weeks ago quelled those fears.

However, it has emerged that overnight, SNCF suffered what has been described as “coordinated criminal attacks” on its network, leaving rail traffic disrupted on several major routes. Attacks took place at several “selected locations” across France, explained chairman Jean-Pierre Farandou, who said France and the French people had been targeted, and blamed “a gang of irresponsible lunatics.” Rail traffic is expected to be affected throughout the weekend.

Under normal circumstances, the sheer size and scale of the Olympics and the required preparations would already have a significant impact on transport operations. Factors such as road closures, increased security, and peak season holiday traffic—combined with rising transport demand associated with the event—will likely affect not just the Paris region, but the whole of France.

Regarding air traffic, the airspace in and around the French capital is closed between 7 pm and midnight during the opening ceremony, due to fears of a terrorist attack.

In a recent Freight Perspectives report on the impact of the Games on the French haulage sector, Christian Dolderer, lead research analyst at transportation management platform Transporeon, noted that while demand was expected to slightly increase, the market would likely face reduced capacity and increased inefficiency.

“This is expected to result in a continued increase in contracted load rejections (transports that are either timed out or rejected by carriers on the Transporeon platform), and a slight decrease in the number of offers per load on the spot market,” he explained. “The first metric indicates that more loads will be moved to the spot market, not only for the impacted weeks, but also for the preceding and following weeks. The second metric provides insight into market competition, reinforcing the basic theory that more offers lead to lower prices and fewer offers to higher prices.”

Despite initial signs such as price increases and decreases of influencing factors, these changes could still be seen as usual spot market behavior and fluctuations, he added. “What we can confirm is that, seven days before the Olympic Games, none of the prior-described potential effects significantly affected the French domestic market. However, this does not necessarily mean there will be no effect at all; it could still be too early to see a direct impact.”

In normal times, transport in Paris is already challenging, but during the Olympics, it will be even worse. Some areas are inaccessible without a QR code, whether you’re a private individual or logistics professional. Between QR codes that don’t work and areas where access is totally forbidden, even more detours than usual will be required for transport to reach destinations, making life almost impossible for delivery drivers.

Meanwhile, the lead supplier of logistics services to the Games, CMA CGM subsidiary Ceva Logistics, has been tasked with moving: 170,000 pallets; 1.3 million items of furniture, fittings, equipment, and goodies; 60,000+ pieces of luggage from airports to Olympic sites; 250 containers of stands and mobile seats; transport, assembly, and disassembly of 17,000 beds at the athletes’ village; 14,000 trips to carry out last-mile delivery with a fleet of more than 600 vehicles; and 900,000+ sports equipment items, including shooting weapons, trampolines, poles, boats, and surfboards. They are also handling end-to-end logistics for the world’s largest audiovisual production.