Global trade and transportation are evolving at warp speed, and we must adapt or get swept out by this evolution.
As I think about all of the recent changes, two emerge as having the most impact on our industry. First is the financial turmoil within the global ocean carrier market, the resulting carrier consolidation, and the reshaping of the global alliances.
Second is the changing political environment and its potential impact on many of the trade agreements and policies affecting the lifeblood of our industry: imports and exports.
Like many of you, I have for years believed that industry consolidation was essential for the ocean carrier industry to remain vibrant and growing. Though we all knew it was necessary, nothing of any real significance seemed to change. Wow, how things have been turned upside down in less than one year!
The bankruptcy of the world’s sixth-largest carrier, major consolidations that are more than just vessel-sharing agreement, new and larger alliances forming, and carriers we never imagined could collaborate are now working together. Carriers, service providers, and all customers must get used to this new world order as it is clearly here to stay.
The same can be said of today’s new political landscape; this particular new world order could very easily have a deep impact on global trade. The ebb and flow of imports and exports can be profoundly transformed by the renegotiation or elimination of trade agreements. As we await the inauguration of the new US president, as well as the seating of a new Congress, we can only speculate on what comes next. We must do our best to let our elected officials know that fair trade arrangements help us ensure our citizens have access to the products they need at the time they are needed.