Throughout 2017 we saw shipping line mergers, growth of digital forwarders, and increasing influence of new services, such as the silk road, making rate management increasingly difficult for the market to deal with. Shippers, forwarders, and carriers have to manage this changing landscape, which results in an increasing number of contracts and significant increases in the number of contract amendments.
In 2017, we saw amendments increase between 30 percent and 70 percent, depending on the carrier. This has only increased the burden on the market for maintaining an accurate and up-to-date view of their contracts, which was already complex and cumbersome. Small and medium-sized businesses are particularly hard hit, many not having the access to either technology or cost-effective resources such as offshore service centers to help them carry this workload. Without numerous suppliers, contracts, regular amendments, and accurate, up-to-date rates, the market cannot be competitive; it is a persistent challenge.
I have spoken to so many companies investing in a digital transformation type project, as we all recognize the need for technology to help us make our data actionable and for us to become more efficient and innovative. So far, the real positive impact of these efforts has been limited; when we want to transform ourselves digitally, we first look inwardly, to our own processes and system capabilities. The problem here is while you are busy transforming yourself, your vendor, client, or partner is doing the same thing, and suddenly the landscape changes, and you have to revise your plan.
The most successful digital transformation projects in 2018 will prioritize their inbound and outbound data flows and needs, research the industry leaders’ trends, work with their largest partners, and use flexible, neutral technology to connect them.