Shippers, freight intermediaries and carriers were swimming in freight and making money. The mindset within the industry, at the time, was collegial and occasional upsets could generally be smoothed over in short order.
Then it all came crashing down with the global recession, and the mask covering the true state of the shipping industry was torn off, revealing what everyone knew but didn't feel necessary to address ' the inefficiencies.
Prior to the recession, the industry could afford to hire personnel to make up for less than optimal practices in customer service, equipment positioning, cargo tracking and freight payment. Systems improvements were discussed and implemented, but not to the degree that should have taken place when the industry was generating comfortable profits.
Now operational pressures are on with industry-wide staff reductions and budget cuts. Although volumes may be smaller than pre-2008 levels, cargo still moves. Shippers and carriers are at each other's throats over deteriorating customer service and what should justify sufficient compensation for transportation activities. (See 'Anger management,' pages 36-42).
For years, shipping executives have talked about the importance of long-term partnerships, technology-based efficiencies and 'win-wins.' However, today's upheaval goes to show that very little has actually been accomplished in these areas.
Reality stares the industry in the face, and simply sparring about it will accomplish nothing. For sure, the global economy's rebound will be slow and bumpy. Shippers, intermediaries and carriers must get serious about forging long-term partnerships based on mutual respect and understanding, and making those systems investments that will foster efficiency.
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