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

The Pacific Maritime Association (PMA), representing employers at 29 ports, and the International Longshore and Warehouse Union (ILWU), which represents 20,000 dockworkers, have come to a tentative agreement on a key issue in ongoing contract negotiations.

Diesel prices continued their ongoing decline, with the average price per gallon falling 6.7 cents to $2.866 per gallon, according to data issued this week by the Department of Energy’s Energy Information Administration (EIA).

Unlike other shipping companies, the Postal Service is not implementing any new dimensional weight charges with this pricing proposal

Drewry is expecting the recent spate of freight rate volatility to continue.

For November, which is the most recent month for which data is available, the SCI came in at -3.2. While this is still entrenched in negative territory, it represents an improvement over October and September, which were -5.5 and -6.6, respectively.

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA