When uncertainty is the only certainty

When uncertainty is the only certainty

As I considered what to write about for this Voice of the Industry article, I couldn’t help but wonder whether we are currently experiencing the most challenging times ever for the freight forwarding and logistics industry, and the international supply chains that it underpins.

The tangible impact of global geopolitical issues—such as the conflicts in the Red Sea and Ukraine—alongside bottlenecks and an ever-increasing number of extreme weather events, is having a huge effect on the industry across all modes and areas of those supply chains, which face ever-increasing pressure.

Added to that are the slightly less tangible impacts and opportunities connected to issues such as the environment, sustainability, cybersecurity, artificial intelligence, and the digitalisation of processes and solutions. All are high on the agenda of companies that manage much of the world’s international trade.

Many are asking whether the era of unbridled globalisation is over, for now, and what the impact will be on the freight industry. The major economic blocs of the EU, the USA and China are engaged in a trade conflict, the direction and outcome of which is almost impossible to predict under President Trump. New tariff barriers are set, only to be reset, resulting in further economic disruption.

In all regions, people and governments are once again favouring national over international solutions. There is talk of a shift in production and competition between locations for technological development, impacting labour markets and social structures. This reduces the predictability and reliability that had ensured the smooth development of the globalisation process.

Acquisitions and mergers by financially strong, large companies from within and outside the sector are increasing the concentration of the corporate freight and logistics landscape, leaving many medium-sized and smaller businesses pondering how to assert themselves.

All of the above, and more, will shape our industry today and in the future. The situation brings an unprecedented level of unpredictability, volatility, and the need for adaptation—not only for the manufacturing sectors, but especially for the logistics industry.

Companies are therefore facing challenges that place the highest demands on management in terms of willingness to learn, willingness to experiment, and courage.

The industry is left wondering: how can freight procurement remain strategic and future-proof under such conditions? And companies are asking how they can be ready for everything that is forthcoming.

A good way of preparing for these changes is to attend key international conferences such as Transport and Logistics, to engage in the type of discussions that take place, and to become a little more informed about the current state of play in freight forwarding and the key issues affecting the sector.

Just recently, the trade association I lead held its first national conference in almost two decades. We titled it Ignite Today – Accelerate Tomorrow, with the idea that we need to be as prepared as we can to move forward.

Seminars focusing on airfreight, oceanfreight, sustainability, and the ever-evolving customs processing environment provided critical updates and helped delegates prepare for future developments in these key areas.

A well-attended session saw insurance experts attempt to settle the ongoing debate surrounding logistics insurance, whilst another, on cybersecurity, delivered a deep dive into best practices for securing sensitive data—helping attendees to avoid the threat of hostile profiling.

Our conference provided valuable opportunities for professional development, and I hope it will become an annual event for those looking to stay ahead of the curve in an ever-evolving industry.

As a national trade association, BIFA has also been doing all it can to support our members through all of the changes and challenges facing the freight and logistics industry.

We have reinvigorated our programme of regional meetings and added a policy group that focuses on sustainability issues in logistics. April saw BIFA launch a new advisory body to focus on the impact of the planned massive redevelopment of the cargo estate at Heathrow Airport and the associated freight management systems.

At a time when the industry is struggling to recruit and to get the current Generation Z—and the next, Generation Alpha—interested in a career in logistics, we have made the ability to train staff as easy as possible.

Clearly, the freight industry continues to face many uncertainties. The other part of that much-used phrase is: knowing how to live with insecurity is the only security.

Only by continuing our collective dialogue can we hope to overcome the uncertainties and deliver a secure future for the freight and logistics industry.

Steve Parker
Director General, British International Freight Association

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