Market Update – 10th March 2023

This week saw International Women’s Day and its theme of embracing equity. Different to equality, equity refers to creating opportunities for women as opposed to just offering the same chances that men receive.

A way to achieve this is to hire women across every level of the business so as to increase representation and diversify the ideas heard at a senior level. We’re seeing this happen increasingly across the logistics industry, but it isn’t enough to make the sector more inclusive. 

While there are now more females in leadership positions, the gender balance is still heavily weighted in men’s favour. This is partly to do with external factors like the staggering costs of childcare, but it’s also due to a lack of initiative on the part of logistics businesses. 

Flexible working helps, but businesses could be seen to do more to encourage women back to work and raise awareness of the possible career paths that supply chains offer. 

Relevant apprenticeship schemes could encourage more young women to consider the field, and logistics hiring managers should attend job fairs to help address that balance at entry-level. 

There are roles available, and employers motivated to make logistics more equitable, the problem is a perceptual one. And it will take the industry as a whole to change that. 

In other news:

Transportation trends         

Land:        

• According to forwarder reps, 3PLs have seen growth in the last year even with container traffic returned to pre-Covid levels as e-commerce businesses outsource their logistics to fulfilment firms for online purchasing. 

• Amazon is cutting back on its infrastructure, including its facilities, because of a slowing market and huge losses. However, the business has started a drive to construct additional fulfilment centres across the US at the same time.    

Air:    

• Following the announcement that DP World and the government of Somaliland have launched the Berbera Economic Zone (BEZ), all eyes are currently focused on Africa. The industry will pay attention to the sea-air potential of the businesses, which is considered to be Africa’s best chance at regional connectedness. 

Sea:      

• Commercial feeder operators in North Europe now face a decline in demand for transhipment due to the Russian invasion of Ukraine, as well as a rising danger from ocean carrier clients running their own services.  

• Due to the robust cargo quantities and freight prices on routes to and from Russia, more NVOCCs are turning into shipowners or liner operators. 

• A new fee known as a “disruption penalty,” which went into effect this year, may be applied to an OOCL vessel engaged in a near miss incident while being towed through the Panama Canal. 

Industry news        

• Digital interconnection will boost productivity but also make centres, couriers, and forwarders more attractive targets for hackers. 

• The head of the manufacturing sector’s lobby group has demanded a “reset” in the UK’s relationship with the European Union, claiming international suppliers have increasingly turned their backs on the country. 

• The United States worries that China will use its power in global supply chains as an additional weapon to advance its political and military might, highlighting further strain between the two nations. 
• Southeast Asia is the “new China” and should be the centre of the global supply chain, the head of an influential regional business body has said. In an interview, Arsjad Rasjid, chairperson of the ASEAN Business Advisory Council (ASEAN-BAC), said the 10-member Association of Southeast Asian Nations (ASEAN) should be the “supply chain of the world.” 

Looking forward     

That’s it for this week’s report, if you have any questions about the stories raised today or need support with your current supply chain, please get in touch.