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Vast amounts of wealth have been made in the shipping industry, and it makes sense because those that control the movement of freight control the flow of international and intrastate trade. Of course, if we look at the decline in the Baltic Index in 2008 and 2009, the shipping industry is in dire straights.
So, what can a company that owns ships, air cargo, or trucks due to cut costs in the short term in order to prevent becoming a casualty? One thing they can do is slow the speed of their assets to control their own costs by saving boat loads of fuel. By operating their assets at the optimum and most efficient cost saving speeds they can more than half their operating costs.
And since the industry has been cutting capacity and seeing fewer shipped goods, there is no need to hurry up and wait while the ports are stacking up with product that the retailers, warehouses, and end users do not need or want.
Another thing they can do is to find ways to wave fees and cut costs, go for volume and operate at an extremely low-cost, high volume basis temporarily, while their competitors exit the market place. Well, those are two things they can do in the short term to save money, but what about the long-term?
Long term it makes sense to invest in the most efficient assets, improve efficiency through better Artificial Intelligent routing software and put executive employees on government committees and boards of trade organizations. By being part of the solution today, to help get things moving again, they will be the go-to company tomorrow.
Global Trade is not dead, the need for products and services is not dead, we just have a temporary economic issue to deal with, now is the time to watch costs and make it through this perfect storm and continuous pounding of rogue financial waves and wake turbulence. Here is a saying I'd like you to remember;
Be Well, Live Well, and Live Longest.
Lance Winslow - Lance Winslow's Bio. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/.
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