As shippers, freight firms, and companies double down on their monthly and quarterly mapped-out targets via different markets, suddenly, the world’s supply chain took a twist due to the global crisis emerging from the pandemic coupled with Russia-Ukraine concern, with the latter leaving the world with trade restrictions, even as the world continues to battle the former. However, with trade financial goals believed to be on the ugly trajectory, trade extra is poised to resolve looming fears.
As we know, it’s expected of freight entities to seek their morning dew even as they strive to figure out the best possible ways to scale up their margins (financial inflow) but with a twist in this economic space, the outcome of their primary interest is certainly the opposite. Typically, crises that led to trade drought do not only hurt the company’s financial goal but the global supply chain, while leaving a vast majority of the world’s economy to a standstill.
Going with the current concern, we all understand companies’ financial goals are at stake noting that major markets are in a dire situation which has led to an energy crunch, and shortage of food supply with the former impacting the production sectors. As the pandemic continue to take its toll on a global scale, which at some point led to lockdowns across geographies, supply chain was brought to a halt, and, in turn, markets were left with domestic options, while the world thought its finally winding down on that, there comes another that brought about trade restrictions, which is in turn, impacting core economies across geographies, thus, high inflation rate.
As we shift focus in order to avoid long litany of the current crisis noting that this economic space is the most impacted. Since trade is key to all markets, circumventing the current crisis should rather be our watchword. Therefore, as you double down on your trade objective, it’s evident plans toward monthly and quarterly financial targets may have been laid down prior to these crises, however, judging by the current economic climate, the hope to achieve the already set-out financial goal could be dashed. Should firms re-strategize via potential markets and trade routes! The already set out financial goals will be met.
A good number of freight firms could be going about the current situation with the wrong notion, for instance, focusing mainly on traditional approaches such as downsizing to ensure the firm’s overhead costs that cut across other areas of financial demands are dropped to their minimum other than being innovative, but wait on global supply chain across specific markets to gradually rebound, begs the question – how do you intent to cast your net judging with the current economic climate while noting that your financial goal could be dashed! Equally, what trade category and markets are your likely “plan B” for your financial recovery? However, figure out what you’re not doing correctly at the moment.
NEEDFUL ENGAGEMENT FOR THIS MONTH’S
Since the global supply chain cuts across all geographies and markets irrespective of political concern, in each of these markets lies unique potential. In the event of a trade drought, bearing in mind that volume below average isn’t in the trade camps. To ensure you aren’t wasting time on the politically charged litany of promising economic rebound, notably in most impacted markets that may not see the light out of the tunnel even in the next quarter, should the current concerns persist! It will be fair to take a bold step having weighed downsizing as your last resort that ensures competent hands aren’t lost due to market volatility.
In view of this, it will be fair to ask noting your trade specialization if you or your firm has taken a step into less impacted markets that are void of the current global crisis! With energy crunch and food shortage being the most impacted trade products, will it not be fair to switch trade and markets via potential consignees (merchants) to ensure the already mapped out financial goal is achieved! Although, such an attempt could prove really difficult due to concerns over market entry coupled with cross-border trade specialization per transit route. Yet, one may be doing this as a trade consultant, which is also the aim of trade extra, which aims to take your trade ambition to the next phase. However, this begs these questions:
- How do you intend to keep up with your core workforce, noting your financial capital base is depleting rapidly, with trade drought and inflation rate at their highs!
- What’s your “Plan B”! Or have you sourced for viable markets as part of your “Plan B” other than depending on the already existing trade geographies that suites your trade category/ specialization!
- Having gained entry into these potential markets, or on the verge, is your “Plan B” markets currently delivering results with regards to already set out financial goals!
Access to potential markets and safe transit route is significant going forward as we seek to circumvent the current global concerns, noting that some regions are less impacted. In these markets lies alternate trade products, thus, merchants and this could mean a drift from your traditional markets as the world wait for global trade to rebound. However, it’s significant to ensure your trade firm isn’t going about this in the wrong way, therefore, in order to give this your best shot, figure out where you’re getting it wrong.
HELPFUL TIPS
In case your trade is currently running late on financial delivery as presumed due to restrictions coupled with other concerns, it will be fair to run quick research within potential geographies and source for consignees (merchants) in order to figure out viable markets in those regions, yet not necessarily within the orbit of your trade specialization and routes but in your trade capacity. Currently, merchants across the globe are eager sourcing for viable markets and competent hands that will help circumvent their current concerns, more significantly offering them the best advice regarding potential markets and safe transit routes per trade.
Virtually all markets across geographies are currently faced with trade-related concerns, with major economies heavily impacted due to restrictions, yet there are less impacted markets with great potential but the question is – how do you get to figure out these markets, potential consignees, and the best transit route from an economic point of view!
It is significant to demonstrate your competence in this space, with the trade drought not showing any sign of fizzling out, financial goals are at risk but with your guide as an expert in this space, the current trade concerns have suddenly become a new normal could rather be your morning dew.
Energy crunch coupled with food shortage are currently top and most impacted trade products and are greatly needed across the globe. In the meantime, the European market appears to be the most impacted with food products at their highs coupled with energy – LNG which is also at its highs. As for the U.S., energy products are at their highs coupled with the inflation rate, however, the aim of this submit is to guide shippers and consultants on viable markets that will help them achieve their financial goals irrespective of the current crisis. However, this does not necessarily mean trade that ensures a shipload, as an expert in this field of economic sub-sector, you’re urged to advise merchants to trade with smaller crafts due to inflation rate that can also be deployed in shallow waters, and even less economic areas. Noting that, with this, the fear of capital intense trade will be overlooked
In order to shape things right, and if in search of an alternative energy market, the continent of Africa and the Middle East is your best bet owing to the fact that these continents are the less impacted currently.
“We sincerely apologize over trade extra delays, which ought to have been delivered before now”.
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