Freight forwarding dynamics afford the types of challenges that can define careers, as well as those unforeseen variables that can drive executives back to the drawing board. Recent headlines detail a number of critical situations that are out of our control, forcing shippers and their respective service providers to create the type of supply chain management measures that allow them to hedge against marketplace volatility.
Whether it’s the economic fluctuations we see in Europe and Japan, the U.S. ocean cargo congestion in various ports, or the introduction of ultra-large container vessels, it’s clear we need to remain agile and adjust our strategies. With these factors in mind, 2015 will call for clearer shipment visibility and increased ability to shift modes.
First, and foremost, shippers will require better visibility of the entire supply chain to realize more timely and granular shipment status. The service providers that offer tools with notification capabilities will be in the best position to help their customers plan proper courses of action during times of uncertainty or change. Visibility maximization looms large in 2015, making it critical for providers to up their technology game.
Second, as our industry works to rebound, these same shippers will look for more options to control the speed of their deliveries and adjust to changing conditions or demand. While mode shift from air to ocean has been the trend during the past several years, it’s important to note that improved economic conditions will yield broader multimodal considerations to meet a growing variety of specific delivery objectives.
The concepts of marketplace volatility and economic interdependency will remain key in 2015, as will service providers’ ability to offer solutions that work in the ever-changing international shipping environment. To maximize success, providers need to focus on visibility and flexibility backed by excellent, reliable service.
Jack Muhs, President and CEO, FedEx Trade Networks