The U-Freight Group Ltd (UFL) said resiliency will be key to successful supply chain management in 2024 as the new year presents "more unique challenges" in the face of ongoing disruptions.
The Hong Kong-based freight forwarder and logistics company noted that despite earlier economic growth projections, the global supply chain is once again forced into uncertainty following the current chaos caused by the crisis in the Red Sea.
"It would appear that the only certainty is uncertainty," UFL said in its January newsletter.
"Events in the ocean freight environment in the last four weeks are further evidence that we can’t predict the future and plan for each scenario. Working resiliency into the supply chain will remain key to staying adaptable and nimble when planned or unplanned disruption occurs."
UFL added that notwithstanding the current crisis in ocean freight, the softer freight market in 2023 helped many sectors, primarily air, return to the more cyclical patterns from 2019 and earlier.
"From there, more consistent ordering patterns followed," it said. "These more consistent ordering patterns will hopefully feature in 2024. This, combined with a break from the pandemic backlogs, gave shippers a chance to rethink their supply chains based on other factors, such as shifting consumer behaviours."
The Hong Kong-based freight forwarder, however, cautioned that while the return of cyclical and traditional patterns is a relief, shippers should remember that "disruption can happen quickly and often unexpectedly" — even in a traditional market.
"While disruptions aren't new, 2024 does hint at them presenting more unique challenges," UFL said.
It went on to note that it's not just risks that are altering the global landscape. Trends like reshoring and nearshoring, particularly in Southeast Asia, India, and Mexico, are contributing to the shift in the flow of freight.
"And with nearshoring helping to strengthen supply chain resiliency, it’s unlikely to slow down in 2024."
Meanwhile, for UFL, 2024 promises to be "another year of investment," it said, with plans to further grow its global operations and services.
