Dear Ahab:
What can we expect to learn at this year’s Trans-Pacific Maritime Conference (TPM)?
–Trade Showless Joe
Dear Showless Joe: This year’s TPM promises to be very interesting because it is very hard to predict how tariffs, vessels beginning to sail through the Red Sea, higher wages for port workers, new carrier alliances, shifting weather patterns, and a multitude of geopolitical problems will affect our industry. The reality is it is very hard for any business to function with this much uncertainty.
However, one thing is certain: If you go to TPM with an open mind you’ll get some valuable insight on how to manage these issues. There is nothing more valuable than knowledge, and you can gain more of it by simply associating with the right people. My advice is to find someone who has more knowledge and experience than you in understanding how to navigate the uncertainty. Having this superpower in your arsenal will make your business unstoppable in 2025.
Dear Ahab: I’m at my wits end with all this uncertainty in the logistics industry, I just don’t know what to expect from one day to the next. Needless to say, I’m a bit anxious! Do you have any idea what the future hold for ocean freight rates?
– Not-Shore
Dear Not-Shore: With new tariffs being either reported or instituted, shipping companies saying they may soon start to sail through the Red Sea, new carrier alliances working through the kinks of their new relationships, and the possible return of blank sailings, it seems reasonable to expect that rates will be all over the place this year.
That being said, betting on outwitting the system won’t always bear fruit. Sometimes you simply can’t. Therefore, you need to consider your comfort level for risk. The reality is no one knows what is going to happen from one day to the next. Therefore, it is probably best to just sign with a forwarder who can offer you more services and protection and pay the fluctuating rate. Chances are, in this environment, you will do a lot better.
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