One of the most important elements that will continue to evolve in 2016 is the way we develop the mechanics of conducting our business. The “how” is changing rapidly. Our industry is no longer insulated from the risk that start-ups and opportunistic business people can find a better way to provide what was once our exclusive core service delivery offerings.
The new risk will be added pressure on carrier selection as innovation could reduce the historical gains in having a direct relationship with a carrier. It is clear that supply will outweigh demand so shippers and importers will likely inherit the best possible market rates by default. We cannot expect much by way of consolidation so ease of doing business could become the enhanced separator. With that comes the interesting question of who should own that relationship in future modeling?
This is not to say that carriers are limited or restricted from investing and positioning themselves for the new generation of clients and modern channels of social networking and digital interaction. The question is who will put forward the right balance of industry knowledge and capital to do so when the value of our market is diminishing at an alarming rate? In the end, the market always finds a way to balance itself.
Will 2016 be the year? The market forces will accelerate the need. However, the speed at which modernization develops will be influenced by organizations with visionary leaders. Those who allow for innovative work environments so new ideas can flourish and help adapt their products to cater to changing business arenas. Clients can then make a choice on whom they believe is best positioned for investment in a relationship that will allow them to grow together as a partner.
Jonathan Yock, President, Safmarine North America