Our Cargo Services team attended the TPM23 conference hosted by industry publication leaders from the Journal of Commerce. This annual conference is the premier event for global logistics, freight and supply chain leaders.
Here’s a summary of the Top 10 conversations we heard.
- The content and conversations were focused on what’s happened related to pricing over the past two years, coupled with the predicted future capacity influx. A 9% capacity increase over the next two years is projected, while demand is predicted to stay flat.
- Carriers have cash in the bank, and they will be using that money to invest in their businesses. Some will look to buy their way into market share by lowering rates, others will focus on infrastructure.
- Ports are being pushed to improve infrastructure. Those that have completed projects had booths and representatives selling the functional and geographic advantages.
- Rail systems have outdated infrastructure. As a result, one major importer has decided to make a supply chain shift from west coast (Canada and United States) to east coast ports for their Midwest imports because they say they don’t trust the rail system.
- There was a lot of discussion related to the current state of global politics. The Russia-Ukraine situation is not affecting the Trans-Pacific shipping business at this time, but there are concerns it could spark other conflicts that would affect U.S. import capacity.
- Disruptions will be a part of our business for the foreseeable future. Flexibility remains key.
- Shippers continue to be in the driver’s seat, pushing carriers for lower rates and smoother processes, with customer service needing improvement.
- The 2M Alliance breakup between MSC and Maersk resulted in a lot of chatter. The lines are the two largest global carriers. They announced their Alliance will expire in 2025. The impact will continue to be discussed and dissected.
- Carriers are concerned there could be some teeth to the legislation currently being worked on about antitrust/monopoly in ocean shipping.
- MSC Is betting on Africa becoming a link in the global supply chain in the next ten to 20 years, and their representatives talked about expansion plans.