Our Team's Articles on the Sector and the Agenda
FIATA, the umbrella organization representing thousands of freight forwarders who serve as intermediaries between millions of shippers and numerous transportation operators, held its 2024 congress in Panama. The main agenda items included regional conflicts, political and financial sanctions, and the resulting security updates (such as ICS2, AEO, and AMS).
According to the Gregorian calendar, February 12 is New Year's Eve in China, the year of the Horse ends and the magnificent year of the Dragon begins. This time before the new year, when nearly half of the population in China moves, is also a very stressful period for export companies.
In November 2022, while planning the budget for 2023, Freight Forwarders based their calculations on usual increments. However, by October 2023, it became apparent that almost no Freight Forwarder would meet their planned budget. While their revenues are in USD, their expenses are in local currency, including taxes, rent, and social security premiums. The depreciation of the Local currencies in 2023 exceeded expectations and didn't present a significant problem in 2023, but it shattered expectations for 2024.
The digital age has come with its own risks and opportunities. Although the logistics industry feels the distressing side to their bones, a privileged part benefit from it. A senior manager of a local freight forwarder association said, “We will soon have to write in informatics on our signs.” He meant that the best way to do this job was to go through digitalization. While I don't agree with the signage part, I agree. However, some companies do not internalize digitalization sufficiently.
Despite the fact that ten years have passed since the logistics industry met with digitalization -as of 2021- it started more talked with the Covid epidemic. Medium-sized (25-249 person) logistics companies that shredded the local market in the pre-Covid period did not see much risk of their dominances being harmed, and the freight that increased exponentially with the Covid had already reinforced this situation. These days, when the logistics consumer who is afraid of not being able to find a place, feels unclaimed, large and multinational companies have already targeted medium-sized companies with artificial intelligence-supported algorithms.
Maersk surprised all freight forwarder companies with its new digital transformation strategy that replaced traditional method. This new technology exposed all error issues by traditional system to the delivery process.