Join us in this video as Trent and I dive into what’s happening in international logistics right now. Fresh from the Trans-Pacific Maritime Conference, Trent brings back insights on ocean freight trends, changing rates, and industry challenges.
We’ll cover what these shifts mean for logistics managers looking to make the most of today’s market.
Jump into the full discussion below!
A couple of weeks ago, I had the chance to speak with Trent, who attended the Trans-Pacific Maritime Conference in Long Beach, California. The conference brought together shipping professionals from around the world to discuss the state of international logistics, and Trent shared some valuable insights on where the industry stands today.
Where Are We Now in International Logistics?
The pandemic had a significant impact on ocean freight, with freight costs rising by as much as 50% and service reliability decreasing between 2020 and 2021. But as we move forward, we’re seeing rates gradually return to pre-pandemic levels, which offers some relief for companies. At the conference, experts were discussing strategies for managing freight in the coming year. The consensus was to lock in contracted rates for critical shipments while taking advantage of low spot rates for non-essential cargo. However, service disruptions continue, and shipping lines are responding by adjusting capacity through measures like blank sailings, which affect the availability of space and can drive up rates.
How Are Logistics Consultants Helping Clients Navigate These Changes?
Trent explained how we’re working with clients at Logistics Bureau to develop long-term strategies for international logistics. This includes helping clients secure low rates where possible and plan for potential disruptions, such as upcoming regulations that could affect the industry. We’re also focusing on inventory positioning, ensuring clients are optimizing their supply chains by considering lower-cost origins and midpoint countries for better overall efficiency. Additionally, building direct relationships with carriers is a key strategy, providing more certainty when navigating future market shifts and disruptions.
Key Takeaways for Ocean Freight Managers
For those responsible for ocean freight, there are a few critical areas to focus on. First, take advantage of the current low rates by locking in contracts for essential goods and using low spot rates for other shipments. Second, building solid, direct relationships with carriers will ensure more stability and flexibility in the face of market changes. Finally, while the market is currently in a “buyers market,” upcoming regulatory changes could shift dynamics, so it’s essential to have a long-term strategy in place to minimize potential risks and ensure smoother operations in the future.
Related articles on this topic have appeared throughout our website, check them out:
- 10 Freight Management Mistakes and How to Avoid Them
- Freight Benchmarking: What Is It? Why Do It?
- 12 Smart Ways to Reduce Your Freight Costs
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated May 24, 2023, under the title “Ocean Freight 2023 Update with Trent Morris“.
