This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
The reduction of overcapacities and tighter stock control of global inventories, combined with rising just-in-time production, have resulted in tighter response times and increased demand for premium air and ocean services. Furthermore, we see that investments in rail and land infrastructure will provide new opportunities, as well as challenges. Lastly, with increased pressure for carbon footprint reduction, sustainable options, such as alternative packaging and tight equipment utilization, need to be consistently reviewed and improved.
Looking ahead to 2020, we expect increased demand for innovative solutions that improve efficiency, enhance supply chain fluidity, and contain costs. These goals are not new, but as we plan to see a continued decline in market growth in 2020, the need for customized solutions has become more critical. The key factors driving this trend are the ongoing tariff barriers, as well as the new regulations, such as IMO 2020, that create uncertainty in the market.
Responding to the marketplace, we at Dachser work with our customers to develop a flexible supply chain designed to respond to the changes and challenges. In 2020, tariffs and free trade agreements will continue to cause a shift in trade lanes and transport modes, as well as driving globalization, with transport business from Southeast Asia, Africa, Eastern Europe, and South America entering traditional markets.
Dachser’s solutions combine a customized approach with deep industry knowledge and state-of-the-art technology. Operational, procedural, and contractual processes are now fully digitized and customers expect consistent, practical, technological advancements that reduce costs and increase automation throughout the entire supply chain. As customers demand increased productivity and streamlining, we continue to build our Interlocking network, which connects all fields of transport and warehouse modes. We believe that a robust, highly connected, agile supply chain puts our customers in the best position to withstand market volatility and unexpected changes in course.