In our current globalized world, where the advancement of technology allows us to be more connected than ever, economic activity found in the internationalization of production the most efficient scheme to produce and market.
Thus, the Asian countries, with China at the head, became the “factory of the world”, supplying products to the large consumption centers, for which complex logistics were developed where raw materials transit through extensive global chains. and finished products that cross the world from side to side.
In this scheme, maritime transport became vital, being responsible for no less than 80% of the cargo that is moved on the planet.
dominant position
This fundamental player in international trade, such as maritime transport, is undergoing a complete transformation, in a process of concentration and mergers that began in the 1990s, when the 30 most important shipping companies represented around 63% of the total fleet. world.
Nowadaysonly 7 alliances bring together almost 85% of the global maritime transport market. An overly dominant position, which in the face of multiple international traffic congestion generated by the COVID health crisis, did not find any obstacle to making an exponential rise, up to 5 times, in the cost of maritime freight. According to the World Container Index, the average value of sea freight for a 40-foot container went from US$1,913 to US$10,300. Shippers pass on these price increases to exporters and importers and these, in turn, to customers. The big loser is the final consumer and, therefore, society as a whole.
Landing
Today the great alliances are expanding vertically towards ports, customs management and land and air logistics services, with the premise that greater integration will offer greater efficiency to exporters and importers.
However, the reality that many Latin American countries express is that as this expansion progresses, exporters and importers are forced to hire the additional services of these large groups to obtain containers or place on ships, as well as to speed up operations offices. Again, customers and consumers are the big losers.
Clearly, as concentration increases and options are reduced, users are affected.
Logistics has become a strategic sector for all organizations, which increasingly need specialized and dedicated services that are tailored to their specific needs. The competitiveness of companies depends to a large extent on their supply chain, which is why today more than service providers, companies seek strategic partners.
“Whoever takes a lot of space, the less he tightens up” the saying goes, and without a doubt this outpost of the big maritime players is not aligned with the need for specialization and personalized services demanded by the markets.
Recalculating
Given the exponential rise in maritime freight costs, many companies have begun to rethink their production schemes. Additionally, beyond Covid, global chains are suffering more and more disruptions, due to geopolitical tensions, as well as the increasingly frequent climatic incidents.
All these factors drive the search for production and marketing schemes that are less dependent on these extensive logistics chains, both to reduce costs and increase predictability, a fundamental factor for planning and being efficient.
In fact, the cheaper workforce that drove the establishment of many industries in Asian countries, increasingly reduces its gap in relation to Western costs. And the need to be more sustainable, reducing polluting emissions from transport, is also a growing trend that adds strength to these changes.
New actors and proposals arise that promote, for example, the implementation of 53-foot containers for intermodal transport, promoting the activity of trucks with trains, the circulation of bi-trains across borders and greater use of waterways for interregional trade.
The world is transforming once again and there are many challenges ahead. If we go back to basics, the main objective of international trade is “to meet the needs of the countries involved, to seek their mutual benefit by exchanging products and to ensure that they expand into foreign markets.” The growth and development of societies, of people, should be the ultimate goal of commercial activities.
Undoubtedly, the diversity of options, specialization, collaboration and the possibility of choosing are the paths that the future demands. Where there is increasing awareness of the importance of the role of people, of links, and of collaborative relationships over any dominant position.
Director of Movant Connection
Source: Ambito
