Freight Forwarding Industry Faces Hurdles in the Second Half of 2023
🚢 Freight Forwarding Industry Faces Hurdles in the Second Half of 2023.
Supply chain professionals are expressing concerns about three main challenges in the second half of 2023: the possibility of a U.S. recession, geopolitical risks, and rising operating costs. A survey by Container xChange reveals that 49% of respondents see a U.S. recession as a key concern, followed by geopolitical tensions at 32% and rising operating costs at 22%. Geopolitical tensions stemming from events like Russia's invasion of Ukraine and tensions between China and Taiwan could potentially impact global trade and lead to the fractionalization of trade blocks. Meanwhile, many companies are grappling with rising operating costs due to a decline in freight demand, increased energy prices, labor cost hikes, and a shortage of depot space.
Phil Yeager, the CEO of Hub Group, highlighted ongoing financial pressures during the company's recent earnings call, pointing to a soft market mainly caused by an excess of truckload capacity that hasn’t yet exited the industry.