Global Logistics: Freight forwarders maintaining their speed

image
By Patrick Burnson, Executive Editor
October 01, 2012 - LM Editorial

Manufactured exports—a bright spot of the U.S. economy in recent years—are set to surge. According to Harold Sirkin, a senior partner with Boston Consulting Group (BCG), this will place new pressures on today’s freight forwarders to sustain velocity, avoid disruption, and mitigate risk.

“The export manufacturing sector has been the unsung hero of the U.S. economy for the past few years,” says Sirkin. “But this is only the beginning. The U.S. is becoming one of the lowest-cost producers in the developed world, and companies in Europe and Japan are taking notice.”

BCG projects that by 2015, the U.S. will have an export cost advantage of 5 percent to 25 percent over Germany, Italy, France, the U.K., and Japan in a range of industries. Among the biggest drivers of this advantage will be the costs of labor, natural gas, and electricity.

As a result, the U.S. could capture 2 percent to 4 percent of exports from the four European countries and 3 percent to 7 percent from Japan by the end of the current decade. This would translate into as much as $90 billion in additional U.S. exports per year.

When the increase in U.S. exports to the rest of the world is included, annual gains could reach $130 billion. BCG forecasts that the biggest U.S. export gains will be in machinery, transportation equipment, electrical equipment and appliances, and chemicals.

So it goes without saying that U.S. shippers who seek to take advantage of these oncoming opportunities abroad will be vetting freight forwarders on a continuing basis. And they’ll be doing so, say analysts, by comparing notes with their peers and staying close to trade organizations for transactional intelligence in order to make these critical partnering decisions.



About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Manufacturing activity in April remained on the right side of growth for the second straight month, following six months of contraction, according to the April edition of the Manufacturing Report on Business from the Institute for Supply Management (ISM).

Some 22 centuries after the original Silk Road smoothed the path of Chinese silk merchants to Europe, a new effort is beginning to build a new 21st century highway between Europe and the burgeoning economy of China, now the world’s fastest-growing market.

A new study released recently from global management consulting firm A.T. Kearney promises to provide supply chain managers valuable advice on risk mitigation

The most recent edition of the Shippers Conditions Index (SCI) from FTR showed solid gains for the fourth straight month, with market trends remaining favorable for shippers.

Shippers and other ocean cargo carrier stakeholders should be cheering the announcement made today by The U.S. Coast Guard, as it formally notified the International Maritime Organization through a Declaration of Equivalency that the United States position on SOLAS is that there are multiple methods to submit the combined cargo and container weight (Verified Gross Mass or VGM).

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA