Executive Commentary |
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Signify
Greg Boyle
Director , Global Sea Freight www . signify . com
Over the past few years , ocean carriers have transformed into one of two types of carriers . On one side , there are carriers that are in it for the long term and can see the impending capacity booms and busts that bring temporary supply / demand imbalances . They understand that the container industry is a roller coaster of supply shortages and surpluses ( with a supply record breaker on the horizon ).
Then there are the other carriers that are living in the ( very ) short term . They seem to lack the basic business skills required to create customer relationships and longterm win / win objectives . They are not interested in their customers ’ priorities or what challenges their customers are facing . They look for almost any incident so they can claim it is a black swan event and increase prices to see what will stick . These carriers have become skilled in the art of price gouging , akin to when a hurricane hits and the local gas station owner quadruples prices . Some would say “ who can blame them ?” as
bipartisan fight to close this multibillion-dollar theft pipeline .
Advanced technology solutions are helping retailers make smarter , more precise decisions about inventory strategy , network optimization and transportation planning . Much of 2024 featured a lot of hype around artificial intelligence , but retailers have distilled real-world applications and pilots are starting to yield some impressive results . In turn , leaner and more efficient supply chains can help increase sustainability gains and reduce transport emissions .
Succeeding amidst all of these issues requires an ecosystem of trusted partners . Top-performing retailers will continue to focus on building and maintaining their ecosystems . Changing alliances , increased capacity and global uncertainty may drive fluctuations in ocean shipping rates — and contract lengths — and the trucking
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there is no real pricing oversight authority in international container shipping ( Federal Maritime Commission and EU competition committee aside ), but it brings to mind some very large corporate failures from the past — such as Lehman Brothers and Enron — who eventually found themselves overly reliant on short-term results .
For us , we will continue to partner with the shipping companies that fall in the “ former ” category . They act with integrity , maintain moral principles , display a sense of fairness and have ethical responsibility baked into their everyday behaviors . They share a longterm commitment to creating solid partnerships that look to promote win / win outcomes . We will be able to succeed long into the future with carrier partners that reflect these values .
industry remains troubled but hopeful heading into 2025 .
There were a fair amount of supply chain disruptions in 2024 , but by now , retailers have amassed a robust playbook of contingency plans that have reliably maintained the flow of goods that American consumers need and want in 2025 and beyond .
SanMar
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John Janson
Vice President , Global Logistics www . sanmar . com
When we look at what it means to be a shipper of choice , it is quite simple : we believe that business is
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“ There are carriers that are in it for the long term and can see the impending capacity booms and busts that bring temporary supply / demand imbalances . They understand that the container industry is a roller coaster of supply shortages and surpluses .”
Greg Boyle
“ Punitive tariffs often do not provide the underlying benefits espoused by its cheerleaders , but rather simply inflate end-user costs and contribute to many small and midsize businesses struggling to sustain their businesses and service their customers .”
David Pearlman
“ We set out every year to reward those carriers that supported us in previous years versus launching multiple pricing bids and moving cargo to providers in a transactional manner .”
John Janson
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personal , and we look at our logistics business relationships with a long lens . We contract with key carriers that can meet or exceed our delivery requirements . In contracting , we want to ensure our volume is meaningful to the carrier and that we establish strong relationships at all levels between our companies . We focus on being a good steward of the carriers ’ drivers and of their assets , and we pay our bills . In exchange , we expect our partners to honor our agreement for pricing and capacity .
We set out every year to reward those carriers that supported us in previous years versus launching multiple pricing bids and moving cargo to providers in a transactional manner . Partnership is rewarded , and our expectations are that partnership will be returned . No one could have anticipated the challenges we faced in 2024 . As we look to 2025 , while still unable to predict market uncertainty , I am confident that continuing to be a shipper of choice will safeguard SanMar and ensure our customers prosper .
Welmed
David Pearlman
Vice President , Logistics and Inventory Management www . welmed . us
The largest challenge for international supply chains in 2025 will be navigating the geopolitical winds currently blowing through the global landscape . These winds are creating turbulence beyond normal business disruption and are endangering the livelihood of many American firms .
A trade war only works if you can provide the production capacity , business conditions and distribution infrastructure previously provided by your vanquished enemies . If you can ’ t ( at a reasonable cost ), you ’ ve made a terrible decision . In the case of the current trade war with China , the US has made terrible decisions for several years — and the trend continues .
Manufacturers import things for
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