FedEx Trade Networks

https://www.ftn.fedex.com
Jan 1, 2012, 12:00 AM EST
Author picture

Fred Schardt

In 2012, the economic difficulties of the post recessionary period may continue to have an impact on many importers and exporters globally. Tighter inventory control, expansion of emerging markets, outsourcing and the ability of providers to meet the ever-growing expectations of global shippers likely will change the landscape of international freight forwarding.

Most economists are projecting modest growth in global GDP in the coming year. Robust growth in Asia will persist, as intra-Asia trade expands, pushed along by regional trade agreements. However, the growing European economic crisis will cast a dark economic cloud over trade among developed nations.

The advent of new free trade agreements also will change the distribution flow of goods across markets as taxes and duties are mitigated or eliminated. The open global economy is expanding rapidly and more countries are participating in trade in ways that were not available to them in the recent past.

With the backdrop of the stumbling global economy, there are early signs carriers are making an effort to control capacity, which will increase customer demand and, ultimately, price. Early indications of increased rates have been reported in the trade press and this could prove problematic for importers and exporters who make shipping decisions based solely on price.