In the evolving global landscape, geopolitics increasingly influences international trade and supply chains. Samir J Shah discusses the impacts of pandemics, regional conflicts, protectionist policies, and economic shifts. He highlights how these challenges present new opportunities for freight forwarders, traders, and supply chain professionals navigating this complex environment.
Until a few months ago we never used “Geo-political” which is now a buzz word. Simply put, international relations are influenced by geographical factors.
But Covid; wars affecting India; the Suez Canal crisis; USA’s tariffs; political upheaval in our region; old friends turning foes and old foes continuing their antics; neutrality of countries getting a new dimension have all changed our perception of “Geo-political“.
The oscillating shift from globalization; to glocalization to localisation – national priority and very strong sentiments fuelled by an unrelenting and often far away from reality social media has confused us all.
At the smallest provocation the expectations from the other are changing. The idea of common good without affecting one’s own good is lost.
The world is too much into interdependence for both finished and unfinished goods. Multiple origin goods being assembled in a third country is common.
All of this is set to change.
The multiple free trade agreements – bilateral; multilateral and regional coupled with deviations from accepted rules of origin is unnerving. The surety of any movement no longer exists. The need for an item is no longer consistent.
One cannot forecast the continued supply of any item.
A new order is emerging.
The professional expected to hold on to all of this is the forwarder. Expectations from him in terms of legal compliances; solutions for an uninterrupted supply as well as ability to guide on alternates – alternates in routes; supply; compliances etc are unrealistic.
The pressure on the trader is forcing him to pass on all additional costs including those due to errors on the Forwarder. The competition amongst the supply chain professionals is also getting nasty and the low margins are getting reduced.
The challenges above also bring opportunities. A good compliance model coupled with an understanding of the service sector. Service is what one does for another – which the other can do on his own. The recognition of dispensability of an agency looms high and it will be important for all to work in making themselves indispensable in the eyes of the client. A service provider who understands the changing needs of the fickle trader will find himself in a good place.
The uncertainty will have to be navigated with a belief that all will end well.
