By Martina Kao    Photo：CANVA

In today's globalized trade environment, international freight is facing unprecedented challenges and opportunities. From geopolitical conflicts to natural disasters, each step can have a significant impact on the supply chain. As a freight forwarding company committed to providing the best logistics solutions, we understand the importance of these challenges and are constantly looking for innovative strategies to deal with these uncertainties.

War and Geopolitical Conflict - Red Sea Crisis

The Israeli-Palestinian conflict and the activities of the Houthi armed forces in the Red Sea have greatly increased shipping risks in this important waterway. The Red Sea is a key sea lane connecting Europe and Asia and is vital to global trade. Due to the armed conflict, shipping companies in the Red Sea region are facing higher insurance premiums and risk assessment requirements, which has increased transportation costs and led to the diversion of shipping routes, which has also indirectly led to the need for more ships.

War and Geopolitical Conflict-Ukrainian-Russian War

The Ukraine-Russia war forced airlines to fly around Russian airspace, which not only extended flight time and increased fuel costs, but also required the deployment of more crew members, making flight scheduling difficult. In particular, cargo flights between Europe and Asia are facing delays due to the need to detour through the southern route or the northern route, which has adversely affected and increased costs for time-sensitive cargo such as electronic products and fresh food.

Panama Canal Disruption

The Panama Canal is one of the busiest shipping channels in the world, with tens of thousands of ships passing through it every year. However, recent disruptions, caused by falling water levels and congestion in canals, have severely affected the efficiency of global supply chains. These disruptions cause delays in shipments, increase costs, and challenge the stability of transportation plans.

Dockworkers Strike

Dock workers everywhere are demanding wage increases, resulting in irregular port strikes that have a huge impact on international freight. Recent strikes at ports on Canada's West Coast and in Germany have stranded cargo, delaying delivery times and adding to supply chain instability. At the same time, multiple one-day strikes by French trade unions have also affected port operations. Tens of thousands of workers in the United States are also brewing strikes. If they go on strike in October, it may greatly affect the peak transportation season before the holidays in the United States. These strikes not only affected import and export activities, but also had a negative impact on the efficiency and costs of global supply chains.

Natural Disaster

Wildfires have continued this summer, with wildfires breaking out across the United States and Canada. The more than 868 forest wildfires in Canada have been the most serious, causing disruptions to railways on the West Coast of Canada and damaging railway roadbed facilities. Typhoon Kemi in Taiwan caused the sinking of a cargo ship, and some crew members fell into the sea and disappeared. One of the cargo ships also lost contact, and five cargo ships were stranded, causing the shipping industry to feel uneasy. These disaster events not only directly interrupt transportation routes, but may also pose a threat to the safety and integrity of goods.

Anti-dumping Duties

In the upcoming election in the United States, anti-dumping and the imposition of import tariffs from various countries will become the political opinion of both parties. It is becoming more and more intense at present, and I am afraid it may not ease in the future. In addition, EU countries have also imposed anti-dumping tariffs on specific products, up to 235.6%; secondly, they have also imposed biofuel levies for energy transition. These tariff policies have increased import costs, affected the competitiveness of enterprises, and led to The need to adjust supply chains has had a profound impact on international trade and freight operations.

In today's increasingly complex global trade environment, freight forwarding companies must be forward-looking and flexible to respond to various sudden trade crises. Through innovative strategies and robust contingency plans, we help clients find opportunities in challenges and ensure the stability and efficiency of their supply chains. We will continue to pay attention to global trends, provide customers with the highest quality logistics solutions, and jointly meet future challenges.

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