FedEx Trade Networks Inc.

https://www.ftn.fedex.com
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G. Edmond Clark

Changes in the global economy and new supply-chain perspectives will have a significant impact on the global transportation industry in 2009.

This year will be one of transition as a new U.S. administration shapes its policies on trade, security and globalization. Previously identified priorities, funding and resources could be re-evaluated and potentially realigned.

Businesses and transportation providers will watch closely to see how Customs balances its previous twin goals of security and trade facilitation in 2009. The Import Security Filing rule will become a reality along with the rollout of the Automated Commercial Environment releases as resource availability and platform testing allow. The dates of the releases remain fluid to maintain integrity within the process.

The state of the global economy will impact shippers, service offerings and supply-chain strategies. New national strategies for key economies will be of interest. For example, China’s recent focus on value-added production and domestic market development already has resulted in the shifting of some export-oriented production facilities to Vietnam, Bangladesh and other developing countries. Trade policy in the U.S with a new president and Congress will also be of interest. Multilateral free-trade agreements and regionalism will continue to influence trade lane volumes. The recent fluctuation in global currency exchange rates will have an impact on imports and exports.

In response to the changing economy and trade dynamics, shippers will look for opportunities to fine-tune their supply chains with various speed and mode options. Shippers want to respond quickly to changing markets with the ability to adjust the speed of transporting their goods from ocean to various air options depending on their needs at a given moment. Transportation organizations that can provide a full portfolio of services with a variety of speed and mode options will be selected to accommodate customers’ changing market conditions.

International supply chains will continue to migrate to DC bypass shipping alternatives that blend direct delivery using any combination of ocean, air, package and less-than-truckload freight services. Transportation companies that can provide customers with multimodal options, a range of transit times and distribution alternatives will be the winners in the current economic environment.