The global supply chain has continued to experience significant shocks in recent years, spurred on from the pandemic, regulatory changes, drastic variations in demand patterns, and geopolitical conflict. This has had visible impacts on the availability of goods, traditional transport modes and routes, and, consequently, the price of the product.
The global pandemic brought logistics and transportation center-stage in governmental priorities. Meanwhile, the supply chain and market structure has experienced profound shifts over the past few years, requiring governments to look at policy and regulatory responses through new eyes. Indeed, now is a time when many, including the US, are re-evaluating their regulatory positions relating to the shipping sector and transport-related infrastructure. The US Federal Maritime Commission has been leading regulatory reform, while the European Union, Australia, and Malaysia are reviewing their regulations governing vessel-sharing agreements and competition law exemptions to shipping lines. Regulators in India and China have been examining weak links in infrastructure and improving their transport capacities. The past few years have exposed the fragilities within the supply chain and there is a need to build resilience so that it can withstand inevitable crises in the future.
The trend to look inward in many jurisdictions is catalyzed by lessons learned from the increase in rates and loss of reliable connectivity resulting from global shipping capacity being repositioned. It will be important to ensure regulations are appropriately framed to facilitate inclusivity and variety in global transport logistics, through ensuring a level playing field for all actors. Another key focus area should be to foster multimodal transport. Freight forwarders, with their expertise and know-how on all transport modes, are well-placed to work with policymakers to develop the necessary infrastructure and policy to facilitate this. However, while alternatives help diversify risk, building the infrastructure needed to support these options takes time. In 2023 and beyond, governments need to work more closely with industry actors to develop a regulatory framework that is fit for purpose, and future-ready transport infrastructure. Importantly, governments across the world should also establish consistent dialogue with each other. Geopolitics demonstrates our global interdependence, and we must be ready to tackle them together.