International Financial Crisis Changes International Logistics Industry

Due to the persistent downturn in the world economy and the frequent effects of recent multinational disasters, the global trade volume has continued to fall. Oversupply of international logistics services has caused international shipping giants to shrink their airlines. Citibank Group recently analyzed that the global dry bulk shipping outlook will continue for two to three years.

Although by the end of 2010, the international container shipping market demand has basically recovered and slightly exceeded the level before the outbreak of the international financial crisis in 2008, and entered a period of moderate growth, international logistics companies are still facing difficulties such as tight funding and falling profits.

The impact caused by the drop in freight rates was difficult to digest, and the freight rates in the shipping industry fell particularly sharply. Before the international financial crisis, the international shipping market maintained a five-year high freight rate, which greatly stimulated shipbuilding demand. Many shipbuilding companies hold orders for the next three to four years. However, the sudden financial crisis has brought this rapid development to a sudden halt. The continued rise in fuel costs, labor costs, etc. undoubtedly fueled the international logistics industry.

Under the conditions of weak market demand, reducing costs has become a feasible strategy for logistics companies to regroup and seize the commanding heights. Of course, this must be based on the premise of ensuring service quality. International logistics companies should establish and improve various cost control rules and regulations in light of the attributes and laws of different costs, and strictly control the costs of fuel and labor costs.

"Responsible for speeding down," slow down sailing is a good way to save costs. Maersk, the world's largest container shipping company, sealed up in the summer of 2009 the 6 Maersk Beaumont, the fastest-growing container ship in the world with only five years of use. The speed of this type of ship can reach 30 knots, while the average speed of an ordinary container ship is only about 22 knots. In 2010, Maersk ordered a number of ships again, all of which are large-scale but low-power low-speed navigation vessels. In addition, in terms of ship scheduling, reducing the air-to-air distance, striving for return cargo, and reducing waiting time can also save costs for the company.

Outsourcing business strategy is currently favored. Logistics companies are increasingly taking on more and more workloads from their customers. However, airlines and shipping companies have experienced huge losses in the past few years. They have no financial resources to carry out more new capacity investments. Therefore, global aviation and maritime transport in the post-financial crisis era Warmer may bring a seasonal capacity shortage in the next two to three years. Some logistics giants began to consider the leasing or purchase of ship carrier ships for transportation. At the same time, it is also necessary to integrate various transport modes including air transport, maritime transport, highways, and rail transport to ease the shortage of transport capacity. For example, DHL Group is further investing in transportation and transit facilities and developing more transportation partners. Another international logistics giant, TNT, has already strengthened its network construction by acquiring local road operators, while connecting the domestic road transport network with its international road, air and shipping networks.

Obviously, the international financial crisis has changed the reality of the international logistics industry. Only those logistics companies with diversified businesses, global perspectives, and proper responses to shocks can become winners.