Dear Members & Friends,
As we are closing in on Christmas and the end of the year, I would like to thank all of you for your support and the many amazing interactions during 2023. It has been a truly great year, with a challenging business environment but also a lot of happy reunions post pandemic. I sincerely wish all of you a Merry Christmas, Happy Holidays and a great start into 2024!
The headlines are crowded with the Red Sea subject and I will keep my take short here. I think it will last less long than one might think, the thawing of Saudi-Iran relations and the start of „Prosperity Guardian“ mission will likely have things return rather quickly.
So lets look at the positive impacts:
1.) Added complexity and attention – Again a subject that puts our industry in the headlines, a subject to talk about with customers and forwarding thrives in times of complexity. We can not change the world but help our customers to find solutions (airfreight, sea-air, alternative gateways etc.)
2.) Rates moving up – Albeit it might be short-lived and already tumble down after Chinese New Year, we see a small rush now, which will help carriers a bit and our margins too.
3.) Safety stocks should stick longer – For those in contract logistics, the return to a just-in-time world will be delayed, as the current scenario again highlights supply chain risks and teaches clients to rather stick with buffer stocks.
On the market environment 2024, I provided an overview during our #KUL2024 conference, which is still relevant, feel free to rewatch it here: https://www.youtube.com/watch?v=RN4xJ8Vt1NM
And we also looked at the opportunities in that new year, which you find here: https://youtu.be/QCQFSep67ig