| ISSUE 11 - Jan 2012 |
| Looking back to prepare for the future Welcome to the 11th edition of 'Service Without Boundaries', the U-Freight Group's customer newsletter. As we enter a new year, I would like to take a look back at 2011, which began optimistically for the transport and logistics industry, but became increasingly difficult for the freight transport and distribution sector as the year progressed. Full recovery from the recession did not occur as many had hoped, resulting in an unsettling effect on the industry – declining demand and therefore declining cargo volumes. The first half of 2011 saw high oil prices and led to some shippers shifting from airfreight to ocean freight, where rates tumbled during the second half of the year on the back of over-capacity. By that second half, pessimism set in as manufacturing slowed throughout the world; including China. Increasing fears of a double-dip recession were much discussed as two of the largest economic regions, the US and Europe, faced troubling political and economic issues. Freight out of the traditionally strong Asia-Pacific region steadily declined during the second half of the year; however, US ports reported increased exports. As the US and Europe struggled with economic issues, questions began to be raised about whether they would continue to be the primary customers of imported goods; and an important shift in trade patterns emerged as markets such as Russia, South America and the Middle East began to exercise their growing economic strength. Not only was the economy a major concern, but also natural disasters played havoc with global supply chains. The Japanese earthquake and tsunami caused disruptions in the automotive industry, impacting manufacturing facilities throughout the world. The effect of the Thai floods on the high tech industry had a major impact on the supply chains of leading IT manufacturers. Both disasters initiated questions about the effectiveness of just-in-time manufacturing and delivery and brought comments on the need to improve contingency planning within supply chains; and helped near sourcing become a topic for discussion once again. 2011 will of course be remembered as a year of great change – both economic and political. The changes that came about last year will create opportunities in the coming years for those financially stable transport and logistics providers that are willing to capitalise on them in this evolving global economy. Rest assured, that is exactly what the U-Freight Group will be doing in 2012, and long into the future. News about some of the investments we are making now, are included in this edition of 'Service Without Boundaries'. Please take some time to read all about them. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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