Annual Review and Outlook

There’s little doubt that 2009 will require each of us to perform feats of tremendous mental calisthenics to face the challenges brought about by the events of the last year.

Is the global economic crisis creating cracks in your supply chain? The worldwide credit crunch, slowing economies and changing consumer preferences triggered in 2008 will continue to reverberate in 2009. Benchmark research by Marsh Inc. finds that leading companies are changing their supply-chain risk practices for 2009 to better protect themselves and their customers. Total landed-cost analysis and product quality checks are no longer sufficient. Leaders are ratcheting up their scrutiny of their suppliers’ financial conditions. This includes not just looking at suppliers’ credit ratings and financial histories but also asking suppliers such questions as: — How has your line of credit with your bank changed from the beginning of 2008? — Are you getting cash advances on our orders, such as by factoring letters of credit? — Do you have sufficient cash flow to fund fully the raw material purchases for our orders? Don’t assume that long-time suppliers are still stable. Recent supplier meetings held by large retailers, for instance, have shown unexpected vulnerabilities. Risk-aware companies are re-evaluating their supplier payment and INCOTERMS, as well as re-examining sole sourcing and increasing the diversity of countries from which they source. These actions will help shield a company from socioeconomic instability, local financial institution failures and government economic actions. For instance, consider slowing payables extension initiatives for your more vulnerable suppliers. New supply-chain insurance products from insurers such as AIG and Zurich are also options for companies worried about economic fragility or other vulnerabilities in their supply base. Finally, continuous monitoring of supplier performance is crucial to spotting financial red flags. Greater lead-time volatility, more short shipments and increased quality hiccups can signal financial difficulties and should trigger a thorough re-examination of the supplier. Also monitor whether your supplier has cut back on its quality assurance staff or switched its suppliers in an attempt to cut costs.

The world economy will continue to have an affect on how all of us conduct our business in 2009. Some commodities that were strong in early 2008 are showing signs of cooling off.

The global economic crisis has had a staggering impact on the bottom line of service providers in the transportation industry.

While the 2009 outlook for the transportation industry is one of the bleakest in decades, it is important that the current economic climate does not result in diminishing the long-term priority of inv

An incredible year has come to an end, a year that brought soaring freight rates and, at the same time, the start of an unprecedented global recession.

Oil price shocks and the global economic downturn are creating a dynamic supply-chain environment for shippers and logistics service providers.

Since 2001, everyone with a connection to waterborne commerce has made continuous observations regarding the importance of port security and the trials associated with keeping our nation safe from thr

The lesson of recent years is that fixation with current trends is dangerous, unless one assumes that the trend is for continued volatility.

Given current global economic conditions, we do not expect much growth in container movement early in the new year, but we are cautiously optimistic about the second half of 2009.

The financial crisis will undoubtedly have a significant impact in 2009. We should see a slowdown in the rapid pace of growth our industry has witnessed over the past years.

This past summer, a veteran captain of a large container ship told me that the future was not looking good. I was a bit surprised and asked my old friend why.

Concern for the homeland will be an evolving focus throughout 2009, and it will impact international trade in a variety of ways as it at times butts heads with the economic downturn.

The crystal ball for 2009 is murky. It will be a difficult, unpredictable year. The financial crisis of 2008 was not expected. Full recovery is in the distant future.

Financial collapse has significantly changed the globalization equation.

In 2008, we learned — again — that the business school textbooks were right: the macro-economy does indeed move up and down in cycles.

In late 2008, the retail industry witnessed one of the worst contractions in consumer spending it has ever seen. The holiday shipping season came and went with barely a whisper.

The last thing any of us in this industry needs right now is another forecast of 2009 conditions.

Overall, we foresee cargo volume being down because of the weak economy, and the credit crunch, in particular.

2009 may be the most economically challenging year in a long time.

As we look to 2009, we see a number of changes that will impact brokers and forwarders.

While the cargo industry has seen economic slowdowns in the past, what we experienced in the latter half of 2008 was unprecedented.

CHANGE! This has been the mantra of the interminable political campaigns of the past 24 months.

If we had made these comments three or four months earlier, it would no doubt have had a more positive and confident undertone than what most of participants face today.

One of the most important changes the rail industry faces in 2009 is an increasingly troubled economy.

Going into 2009, the only thing that is certain is there will be more uncertainty, especially within international commerce.

More than at any other time in the past, the word “change” is involved in many and all aspects of our lives.

We have found that most companies are still looking for a 3PL partner where they can shift internal fixed costs to the variable cost structure by outsourcing logistical operations.

The shipping industry in general and container liner business in particular are well known for cyclical boom and bust. There is neither a lack of healthy challenges nor exciting opportunities.

The good news: vessel space is opening up again. The bad news: volume of global trade is contracting.

Two issues linked to our current global economic crisis are at the top of my list of challenges we face as we enter 2009: the emerging regulatory stranglehold on trade and commerce that could further

For the West Coast waterfront, the defining issues for 2009 will be the manner in which the industry copes with reduced volumes and the corresponding increase in competition for discretionary cargo.

The concept of a Florida Intermodal Logistics Complex, commonly known as an inland port, is making headway as its regional benefit to the shipping industry of South Florida is realized.

The current economic situation has underscored the reality that international trade cannot be decoupled from the global financial crisis affecting the U.S. and the rest of the world.

As we advance into 2009, it is apparent that we face the most serious financial challenges in recent decades.

As a new administration assumes power in Washington, many activities and initiatives will be undertaken to address our nation’s financial crisis and, just as importantly, the global economic dow

“Have it your way,” the advertising copy line of a hamburger chain some years ago promised consumers service that was lightning fast and highly customized (at least as far as choice of con

The state of the global economy is dramatically changing the landscape for international trade.

The European transport market is under pressure because of sharply falling demand.

“The Pharaoh dreamed of seven fat and beautiful cows and seven lean and ugly cows, and lo, the seven ugly cows ate the seven beautiful cows.”