When we ushered in the “Year of the Rat” in January 2020, the unwelcomed COVID-19 gatecrashed the party, and it has since overstayed its welcome, creating anxiety and business interruptions, forcing us to adapt without a fixed end in sight.
We became agile and nimble, battened down our hatches, and weathered the near-term storm. For the longer term, we right-sized the inventory and adapted with new ways of working. We had to do better with less.
The 2019 performance was of little assistance in forecasting 2020, as the business landscape had changed. It appears as though a reset button was pressed and we had to build a new set of data for comparisons. In short, business is no longer “as usual.” The ways in which we do business in 2021 and beyond will have to be different from the past.
The logistics contracting model(s) will have to change. E-commerce will have to be incorporated into the contracts. The interaction between shippers and carriers cannot be transactional as it has been in the past.
I envision shippers and carriers will have to pick their partners who will be the enablers of each other’s goals. It will have to be like a marriage, where partners have visibility of the near future and will have to adapt as they grow together. The rebuilding of trust between shippers and carriers is urgent, as it has eroded in 2020.
I foresee that shippers will not be able to give annual forecasts but at best provide updated rolling forecasts to -carriers. I foresee carriers may not be able to commit to 52 weeks of weekly sailings from every port or on every string but will conscientiously accommodate their partners’ cargo. The unrelenting collaboration between shippers and carriers is an essential catalyst for our economic growth.