1. How has been the business for multimodal transport operators last year and through this year?
Ironically the pandemic brought happy tidings for the Multimodal industry and shipping in general. We have seen freight level rise to a level which we have never been seen before. No doubt all the stakeholders have benefited in one way or the other. Honestly, we should not complain. However the last quarter has bought us back to reality. The freight markets have crashed due to global demand drying, the recession in the UK and US, the Russia –Ukraine war and the lockdowns in China.
Most shipping lines have already sounded profit warnings for the coming year. I foresee some stability may come in the first quarter of 2023, but we will not see the same freight levels of the pandemic again for the long time. In short the honeymoon is over!!
2. Has there been any progress in developing multimodalism in its true sense? What needs to be done?
As rightly stated by you various policies and programmes have been rolled out in the past for individual logistic sectors which has not helped us much. There has to be cohesiveness amongst all stakeholders so as to benefit the industry at large. The Honourable Prime Minister’s initiative of Gati Shakti is a step in the right direction. This is the 1st time in our history that a Government is taking cognisance of our industry and the importance it plays in the economy. The Government’s initiatives of setting up Multimodal Logistics parks (MMLP’s) is the right step in developing the real concept of Multimodalism and ensuring seamless flow of goods between two or more modes of transport in a cost effective manner. However the speed of implementation has to improve.
3. Trends that will drive the shipping and logistics sector in the months to come?
During the boom in the pandemic years a lot of new buildings have been ordered which will be delivered mid 2022-23 onwards. We will see some excess capacity. At the same time IMO regulation’s also foresee scrapping of old tonnage in view of environmental and safety standards. There will be some disruptions in the coming months before things settle down. China is an important factor in our trade and it will also depend on when their lockdown’s are removed and production and supply chain’s return back to normal. The UK has recently announced a slew of measures to bring it out of its recession and the US is already bucking the trend by putting in place preventive measures. These aspects will play a crucial role in the global shipping and logistics sector.
4. The current geo-political scenario and its impact on the global supply chains?
It goes without saying that the current Russia – Ukraine war is playing a big role in the global supply chain market. Grain supply, oil distributions have seen disruption and this will continue unless common sense prevails and a cease fire is announced and negotiations takes place.
Although many people foresee a long drawn out war. I personally feel that we will see some progress in the next quarter towards reconciliation as no country can absorb this kind of upheaval. The upcoming US elections will also play a big role in determining how the Federal Reserve behaves which has a direct impact on global shipping trade.
