What to expect in 2023 - 4 key trends in freight forwarding
The Maersk Communications Team researched the latest views on what’s to come in the year ahead. We’re including a summary view below, while the full article can be read on Maersk.com.
As those in the freight forwarding industry finalize their strategies for 2023, here are some key trends to watch out and prepare for in the coming year.
1. The unexpected becomes expectedMore than ever, supply chains are subject to varied and unpredictable challenges and issues. This year will be no different. The need for both domestic and international freight forwarders to ensure they are resilient and ready for anything has never been greater. Agility, flexibility, and visibility – often facilitated by digitalization - are all key to riding out a storm. With the right technology and ability to collect and analyze data, freight forwarders can improve efficiency. According to a McKinsey survey, 90% of supply chain leaders reported investing in digital supply chain management technology since 2021, with 80% expecting to continue to invest in 2023 and beyond, often to support advanced planning.
2. Economic uncertainty and the rise of protectionismWith geopolitical conditions and rising inflation, 2023 is widely tipped to bring a slowdown in economic activity. The International Monetary Fund (IMF) is predicting global economic growth to go from 6.0% in 2021 to 3.2% in 2022 and 2.7% in 2023. Meanwhile, the World Trade Organization recently revised its growth forecast for global trade in 2023 to just 1.0%, down from an earlier estimate of 3.4%. This loss in momentum in many markets will significantly impact freight forwarders’ customer base. Meanwhile, in its Q3 report, Maersk indicated that in 2023, “the global container market is expected to be broadly flat to negative.”
3. Sustainability as the watchwordGlobal attitudes to sustainability have shifted dramatically in recent years and will continue to be a central freight forwarding industry trend in 2023. An Economist Intelligence Unit report found searches for sustainable goods has increased by a total of 71% since 2016. According to the 2022 Global Sustainability Study by Simon Kucher & Partners, 71% of consumers around the world are making changes to live more sustainably and buying more sustainable products. In all, 66% of consumers rank sustainability as one of the top five drivers behind a purchase decision, up from 50% in 2021. When it comes to improving sustainability, the freight forwarding industry can play a key role.
4. Digital freight forwarders take center stageDigital transformations are happening in most industries, and freight forwarding is no exception. Digital freight forwarders use technology to coordinate and control the transportation of goods. The global digital freight forward market is expected to grow at an average rate of 23% over the next few years, according to Allied Market Research. It started at just USD 2.92 billion in 2020 and will reach $22.9 billion in 2030. This equals over 8% of the total global freight forwarding market, with 2023 being a key year for innovation and growth.
Read the full article featuring what Freight Forwarders might expect in 2023 on Maersk.com.
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Product Spotlight –
Block Space Plus
Here at Maersk, we continue to innovate our product offerings in ways that align to what is happening within the marketplace and global supply chains. Our latest response to address customer needs is Block Space Plus – a new product we are piloting that combines some of the best options from our classic “Block Space” and our “Enforceable Contract” products.
Block Space Plus meets customer needs for greater flexibility and convenience. For example, with Plus, customers needn’t switch over to the “SPOT” product in the event of overperformance on their contract allocations (subject to availability). In addition, the Plus product calculates the Minimum Quantity Commitment (MQC) against a monthly timeframe, providing customers greater flexibility in when they deliver cargo for shipping. This is particularly helpful when a customer’s cargo may have been delayed due to external factors beyond their control.
There are no time guarantees with Block Space Plus. However, as with the classic Block Space product, “named accounts” are not required for this product, meaning that customers have the freedom to carry any of their end-customer’s cargo.
Finally, the Block Space Plus product does incorporate a charge should actual loading fall below 90% of MQC, but there is also an available monthly rebate for MQC overperformance on the backhaul.
For full details, review the Maersk Block Space Plus Terms or contact your Maersk account executive.
Maersk announces new executive leadership team and organizational structure
On January 10th, Maersk’s new CEO, Vincent Clerc, announced a new executive leadership team effective February 1st. The new organizational structure is shaped around 15 roles and areas of responsibility. The Executive Leadership Team will jointly own the execution of Maersk’s Integrator strategy and is composed to create strong alignment across the enterprise as well as clear ownership and accountability for key aspects of the next phase of Maersk’s strategy.
“We face a challenging global economic outlook, a softening market and at the same time our customers are looking to radically improve their supply chains to make them more resilient and agile,” said Vincent Clerk, CEO of A.P. Moller-Maersk.
“This creates urgent needs as well as unique opportunities. To navigate through and beyond this environment, we will intensify our focus on cost discipline and service quality while increasing customer centricity, and decision power in the front line.”
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