JOC Annual Review [2018] – OL USA President Alan Baer

Jan 17, 2018 | Transportation and Supply Chain News

Rapid change in any industry creates added uncertainty as strategic planning takes on increased levels of
risk. Initiatives concerning technology require double and triple checking as the buzz word digital invades
nearly every meeting. Carrier consolidation challenges ongoing relationships that may have lasted for 20-
plus years, but are no longer valid because of changes in management and sales personnel. Supply
chain management and construction may require alteration as new alliances change routes and transit
times. Combined, these factors add to the daily pressure to deliver for customers the highest level of
service possible.

Moving into 2018, we see these same trends continuing and most likely accelerating. Buying power
consolidation in certain trades is pushing pricing downward and forcing market participants to forge new
alliances to protect their account base and their bottom line. In 2016, in the trans-Pacific eastbound trade,
the top 15 non-vessel-operating common carriers booked in one month the same as the next 85
combined. In October, the top 15 booked more than the next 110 combined. This concentration of buying
power and space procurement in our view is not beneficial to the overall market including carriers, OTI
and beneficial cargo owners.

The new year will see additional entrants into the logistics technology lottery where increasing numbers of market participants are
claiming they have the be-all, end-all digital solution. Capabilities to provide instant online quotes, track cargo, and provide the ultimate
supply chain solution on your phone screen are repeated daily. While potentially a bit old-fashioned, usage of the data and delivering
outstanding customer experiences is the real key. Our industry can certainly use improved connectivity across the supply chain. Our
crystal ball tells us that for our organization, people still make the difference.

ARO Category:
Logistics
www.OL-USA.com
ARO Issue Year:
2018
Source URL: https://www.joc.com/aro/alan-baer-president-ol-usa

Sign up for OL USA's weekly Industry Snapshot

* indicates required

How Will Changing Environmental Policies Impact Shipping and Logistics?

The reality? The logistics industry is notorious for stirring up less-than-positive environmental press. And considering a single Capesize Bulk Carrier uses 40-plus metric tons per day—and releases about 33,000 tons of CO2 in a single year—that shouldn’t come as a...

The Geopolitical Impacts on the Global Supply Chain

The global economy has gone through an awful lot of changes over the past several years, which is nothing new. We’ve all been pointing fingers at the pandemic concerning economic disruption, and for good reason—it’s disrupted trade to a degree we haven’t really seen...

Top 5 Freight Forwarding Best Practices

Whether you are a seasoned veteran or planning your first international shipment, the freight forwarding process can be challenging to navigate. Even the slightest hiccup along the way can cause significant delays, damaged goods, and higher costs. Given these high...

Five Long-Term Changes Covid Caused for Shipping and Logistics

Remember back in March and April of 2020 when nobody could find toilet paper? That was the first nationwide supply chain crisis most of the United States can remember since the Gas Shortage from the seventies. Slowly, over the past couple of years, we’ve started to...

2022 Shipping Reform Act Addresses Rail Delay Causes

Early return dates (ERDs) can give anyone the chills. For example, imagine you just successfully finished a grueling negotiation to deliver a large shipment to an overseas buyer. Your company organized a trucking company to transport goods to the port over the next...

US Port Delays: What You Need To Know Right Now

With peak shipping season fast upon us, U.S. port delays show no sign of easing up. Demand for shipping containers is up 86% over first-quarter numbers as retailers gear up for the annual rise in demand that results from a return to school and the upcoming holiday...

Port Strikes in Europe

Early return dates (ERDs) can give anyone the chills. For example, imagine you just successfully finished a grueling negotiation to deliver a large shipment to an overseas buyer. Your company organized a trucking company to transport goods to the port over the next...

The 2022 Shipping Reform Act: What It Means for Ocean Carriers

Early return dates (ERDs) can give anyone the chills. For example, imagine you just successfully finished a grueling negotiation to deliver a large shipment to an overseas buyer. Your company organized a trucking company to transport goods to the port over the next...

5 Supply Chain Consequences of the War in Ukraine

Not only has the war in Ukraine had a devastating impact on the people of the country, but it has also sent profound shockwaves through global supply chains that were already reeling from years of disruption caused by pandemic-induced lockdowns.  Famine is Stalking...

The Business of Shipping Pet Food  

Early return dates (ERDs) can give anyone the chills. For example, imagine you just successfully finished a grueling negotiation to deliver a large shipment to an overseas buyer. Your company organized a trucking company to transport goods to the port over the next...
Cookie Consent with Real Cookie Banner