Page 52: of Maritime Logistics Professional Magazine (May/Jun 2017)

51 3rd Cover

STATISTICS

Opportunities technology is leading the way for supply chains and forward-

So, where are these opportunities? We asked and 40.3% of ers have taken note. A resounding 92.4% of responses indi- respondents indicated emerging markets while 32.5% noted cated that digitization will add value for forwarders. Indeed,

Asia-Pacifc. North America came in at 12.9% followed by PWC research shows that the digitization of supply chains im- intra-regional markets with 9.1% and fnally Europe with proves transparency throughout the supply chain, communi- 5.2% of the responses. No matter where these opportunities cation among supply chain partners, collaboration among sup- reside, the opportunities are huge: PWC notes that 50% of the ply chain partners and fexibility and responsiveness. Bottom world’s population growth between now and 2050 is expected Line: digitization is not a ‘nice to have’ but instead a ‘need to to come from Africa and Euromonitor International notes that have’ for all supply chains.

emerging markets account for 90% of the global population Also according to the survey, Online freight marketplac- aged under 30. Separately, McKinsey expects that over the es were regarded as an opportunity – and not a threat – by next two decades, the middle class will expand by three billion 58.2% of respondents. That’s because online freight market- coming almost exclusively from the emerging world. As in- places are designed to give shippers access to and book rates vestments in infrastructure such as port and airport expansion, directly from carriers whether ocean, air, truck or rail and road and rail networks as well as in connectivity are bringing rates from forwarders. In addition, shipment visibility is in- commerce to these countries and with it new trade lane pat- cluded along with various reporting tools and analytics. That terns and demand for forwarding expertise. these online freight marketplaces can improve effciencies

In terms of ‘opportunity,’ North America came in at a distant as well as level the playing feld for not only carriers and third, but, says Logistics Trends & Insights LLC, don’t let that forwarders but also among shippers, big and small, plays a fool you. Although its opportunities are a bit different ver- big part in that sentiment.

sus emerging markets and Asia-Pacifc, improving economic conditions has this region ripe for supply chain expansions. Relevancy

Politics, however, dampens some of that optimism as a pos- The survey’s fnal questions asked simply, “Are tradition- sible ‘NAFTA re-do’ and rumors of import taxes swirl around al forwarders relevant in today’s environment?” And, while the US situation, in particular. 68.4% of this year’s survey respondents responded ‘yes’, that number was down from last year’s fgure of 94%. So, asks,

Technology Logistics Trends & Insights LLC, what changed over the past

A whopping 58.1% of responses indicated the forwarding year? Is the freight forwarding improvements would come next in the form of digitization of market facing an identity crisis? Many unanswered ques- all services. Worth noting, operational effciencies, visibility tions remain, but, says the survey providers, “One thing is for and customer service all noted similar responses with several sure, freight forwarders are facing disruption at a much rapid comments indicating all of these improvements. Bottom line: rate and will need to adapt quickly or face extinction.”

Logistics Trends & Insights LLC / on the WEB: www.LogisticsTI.com

All Graphics courtesy of Visually Explained 52 Maritime Logistics Professional March/April 2017 | |