Doesn't it seem as though we are forever plunging into recession, then clawing our way back to recovery? In recent months we've seen hints that the U.S. economy is on the mend, with unemployment levels dropping. At the same time, consumer confidence is once again on the decline. It's a mixed bag by anyone's measure, but we've yet to return to pre-recession numbers in key sectors.
Global third-party logistics had a mixed year in 2011, and 2012 could be more of the same. But the signs are highly promising, at least in certain areas, that the industry's fortunes are indeed looking up.
FPS Hong Kong, a non-vessel operating common carrier and member of the Famous Pacific Shipping Group, is launching direct ocean groupage service to Honolulu, Hawaii.
In 2010, China dominated European and U.S. markets for ready-made garments, accounting for about 40 percent of the import volume in each region. A recent McKinsey survey, however, found that 86 percent of the chief purchasing officers in leading apparel companies in Europe and the United States planned to decrease levels of sourcing in China over the next five years because of declining profit margins and capacity constraints.
LOT Polish Airlines has launched an all-cargo flight between Chicago and Katowice, Poland. According to CEO Marcin Pirog: "Chicago was selected for the all-cargo service because it's the top destination where cargo is transported to and from Poland. Nearly 70 percent of airfreight between Poland and Chicago is transported by LOT." The cargo flight is operated as a wet lease with Cargo Jet twice weekly with a B767-200.
The growing dependence of Japanese companies on manufacturing in parts of Asia is increasing their exposure to water shortages, according to research from KPMG AZSA Sustainability and data and insight company Trucost. Though the study dealt only with Japanese companies, the findings that outsourcing to water-stressed countries, including China, can increase business risks from water scarcity have implications for companies globally.
DHL is enhancing its intercontinental delivery services with the addition of a round-the-world flight connecting Hong Kong, Los Angeles and Leipzig, Germany.
The center of gravity for consumer-focused companies is subtly but unmistakably moving toward developing economies, such as Brazil, Russia, India, China and Indonesia. The middle class in emerging markets will make up 30 percent of the global population by 2020. These customers represent the future.