Freight Disruption is the Not-So-New Normal
By Paul Svindland, Chief Executive Officer, STG Logistics
In many ways, disruption is nothing new to logistics organizations. You could even say disruption is part of our DNA. From mudslides that temporarily shut down major roads to snow storms that delay cargo flights, people working in our field innately understand that changing course is just part of working in the freight world.
Those sort of disruptions, though, are short-term and easily navigated for logistics experts. Currently, following a period of relative calm after the COVID-19 pandemic, supply chain and logistics organizations are facing geopolitical instability on numerous fronts, from the continuous shipping attacks in the Red Sea to the war in Ukraine. These continuous disruptions have caused the freight market to tighten up, leading to a need for additional containers and ships to meet client demand.
The current political instability doesn’t have fast or easy solutions, and quick resolutions are unlikely. The immediate impact from this will be a rise in rates for shippers – it’s inevitable. The demand for container ships is increasing, causing an upward pressure on shipping rates. For the last two years it’s been a shippers market, and that will change in the coming months.
One of the few benefits of the pandemic is the fact that for the first time, customers have a better understanding of how goods make the way to their doorstep. When national organizations like CNBC and The New York Times report on port congestion and ships anchored off the Pacific Coast, it increases overall understanding of the obstacles organizations like STG Logistics face every day. Customers value organizations that can adapt to the ever-evolving, often complicated landscape of supply chain and logistics.
At STG, we are strategically positioned to anticipate and handle any kind of disruption that develops. Whether it means preparing for a potential dockworker strike or averting a debilitating weather event, the fact that we have a presence at every major port in the United States gives us unparalleled flexibility to assist with containerized freight shipments. With nationwide drayage, over the road and intermodal capabilities, we can adapt and provide a variety of solutions for our clients.
At STG, we take our customers’ success as seriously as we take our own. I’m looking forward to talking with colleagues, customers and friends next week at TPM24 as we work together to creatively and strategically meet the challenges ahead.
