Annual Review and Outlook

The logistics industry faces a rapidly evolving marketplace.

Technological roadblocks are rooted in the complexity and the sheer volume of governmental, industry, and trade-related rules and regulations.

As the trade landscape is continuously moving further away from simplifications to protectionism, it becomes increasingly more difficult to ensure a balanced approach.

Logistics real estate will remain strong in 2019.

The withdrawal of the BER would exacerbate the delicate financial standing of some carriers and pave the way for further liner consolidation.

Pricing volatility and the unenforceable nature of ocean contracts are significant pain points that negatively impact supply chain integrity and delivery to customers, resulting in added costs and the inability to effectively plan freight costs.

Technology is just one part of overhauling a traditional supply chain industry.

Alliance monitoring remains a priority as we add senior economists to the FMC team.

To have a complete view of one’s supply chain — a critical component for long-term success — a transportation management system (TMS) holds the most promise to provide a comprehensive "control tower" approach to the supply chain process.

While there are no silver bullets in logistics technology, there are some golden principles.

The biggest challenge facing the ocean-going portion of the logistics industry is that there will be little change in 2019.

2018 has been a watershed moment in freight technology.

Online booking and pricing automation close the technology gap that the logistics industry so desperately needs to fill; not for technology’s sake but for customers’ sake.

Ocean carriers need to be transparent with the new formula for bunker fuel so that customers like Eastman Chemical will be able to “buy into” their new way of pricing bunker fuel.

Surcharges will be a critical issue in 2019 because it will alter the entire present cost structure.

If the trade war continues between the US and China, 2019 may be the year that changes the foundation of where supply chains originate.

It is imperative for shippers to engage with trusted partners to fully understand and develop contingency strategies necessary to manage changing industry dynamics.

Our hope is that 2019 is the year the industry collaborates to safely navigate the detours together.

Few have doubts that e-commerce is changing the landscape of trade, as growth continues unabated in many economies.

Business planning for 2019 has become ever more challenging because of tariff uncertainties.

One of our biggest challenges is to simply stay current with legislation, trade agreements, and tariffs in flux.

We certainly hope that the trade tensions between China and the United States will cool, but the uncertainty has retailers and others nervous about what 2019 will bring.

Shippers who maintain a “business as usual” approach can expect another 8 to 10 percent increase in their 2019 freight budgets and will have more difficulty in sourcing capacity.

America’s retailers are dependent on a trading system that’s global, open, and efficient, to ensure American consumers get products they want and need anytime, anywhere.

Could this be the beginning of the end for ocean carrier contracts governed by the Federal Maritime Commission (FMC)?

Love him or hate him, President Trump has shined a giant spotlight on international trade, and as most of us know, our “industry” now is in the headlines. Every. Single. Day.

Importers have been scurrying to rethink their sourcing arrangements and supply chains in an attempt to minimize the devastating impact of sudden duty increases on their bottom lines.

Corporate blood will spill in 2019 as more than 7,000 products may be affected by the tariffs on imported goods from China.

Estimates show that passenger numbers are expected to double by 2034, reaching 7.3 billion, and that freight will quadruple by 2030.

Inland waterways challenges in 2019 begin with implementing the achievements of 2018.

Concerns about space, rates, relationships, and contracts are what keep me up at night.

For too long, ocean carriers have built their service offering around moving a container from Point A to Point B.

Mitigating US trucking pressures could be as difficult of a question to answer for 2019 as when we were trying to forecast costs for 2018.

To drive productivity and enhance customer service, we continue to identify ways to use artificial intelligence (AI) and machine learning systems across our business, especially in supply chain.

Looking ahead to 2019, resolution of the trade dispute over US steel and aluminum tariffs remains an urgent priority, as it prompted Mexico and China’s retaliatory duties on US pork and Canada’s duties on cooked/prepared beef products.

Global air cargo growth over the last five years has been on a tear, averaging 9 to 10 percent year-over-year growth.

In addition to growth in e-commerce, we begin 2019 with growth expectations for the special cargo area, covering pharmaceuticals, live animals, and perishable commodities.

Our interrelated initiatives remain focused on how to improve cotton flow: digitalization, and increased supply chain alignment, velocity and visibility.

At Werner, we are very active with industry and technical groups to keep current on emerging trends and technology.

Carriers have been pressed to find innovative solutions in an industry where pricing pressures can dominate the conversation.