2. The Year of Living Dangerously Lessons learned from 2010 give hope for a brighter year ahead. By Lara L. Sowinski

3. 2010 Fallout The economic recession is still with us in 2011. Supply and Demand mismatch hurts everyone. Rate volatility will continue to create chaos unless an open dialogue starts between carriers and shippers. This is not conducive to investment in trade growth and therefore makes it difficult for shippers to make long term strategic decisions. Ocean trade is affected by the US regulatory environment as well.

4. Ocean Cargo Issues The resulting supply chain disruption causes a lack of containers or vessel space. Importers and Exporters are pushed to find ways to insure their transportation logistics are met. Importers are “smoothing” their order cycle to insure inventory on hand can meet the demand. Uncertainty of vessel space can also create longer lead times.

5. Ocean Cargo Issues Securing shipping cargo is of utmost importance, it is how we get most of the consumed goods to the US. It is critical to the supply chain to keep the freight moving at reasonable rates that create income for both the shipper and the cargo line. When margins start to diminish due to shipping costs everyone pays more.

6. Air Cargo Issues Costs increasing due to fuel and import issues. The Air Cargo Security Alliance (ACSA), a coalition of 300 U.S.-based indirect air carriers, direct shippers and customs brokers, has formally petitioned Janet Napolitano, head of the US Department of Homeland Security, to implement a federal cargo screening program paid for by a $0.05 cent per pound fee on all shipments, reports Air Cargo World.

7. Air Cargo Issues Air cargo has had its issues as well, but is in better shape now. Rebounded sharply & looking forward to long term growth over the next 20 years. Freighter fleet airplanes expected to increase August 1 st, 2010, deadline for TSA security requirements. All air cargo 100% screened on passenger aircraft.

8. Chart 2: Volume of world merchandise exports 1990-2011 a Indices, 1990=100 a. Figures for 2011 are projections Source: WTO Secretariat

9. 2011 and Beyond We will see partnering with competitors to create an economic advantage. Businesses that are similar can learn from each other. The Supplier’s supplier will be considered in business decisions more and more.

10. 2011 and Beyond Despite the rebound, the negative impact of the financial crisis and global recession are likely to persist for some time. Not to mention that the 21st century warehouse is charged with raising the bar on speedy customer fulfillment and providing that "instant gratification" that consumers buying online are hungry for these days. Thus leading to increased warehouse technology, equipment, and processes being transformed as well.

11. 2011 and Beyond Because the future seems to be upon us already, increased economic volatility will encourage wiser transportation decision makers and carriers to form long term strategic relationships that seek to minimize supply chain disruptions and also avoid excessive price fluctuations.

12. Additional sources: http://www.wto.org/english/news_e/pres11_e/pr628_e.htm