Changes in security infrastructure will challenge worldwide transportation efficiencies this year. Companies that adapt to changing requirements and new regulations will prosper. President Obama and his administration have set a goal of doubling U.S. exports in the next five years. The transportation industry must be prepared.
Used automobile exports are a shining example of a fast-growing segment of U.S. exports from North America. But increasing exports create other problems, not the least is a strain on customs agents inspecting and clearing exports. Personnel and facilities will have to be added, and procedures enhanced, if the export goal is to be met.
Recent security measures and planned upgrades in port security may have adverse side effects in the industry. Although necessary, heightened security at ports in the U.S. and abroad makes it increasingly difficult for ocean carriers to keep to their strict transit times.
Shippers are in for a turbulent and lengthy process as they plan more diligently to ensure cargo arrives according to customers’ deadlines. The seemingly endless list of new security measures hurts overall shipment efficiency because companies have less processing time and less control over their own shipments.
Traditionally, new security measures are followed by new fees and surcharges passed down from port to carrier, and so on, until all the return on investment for all decreases. More time equals more cost and less profit. Opposition to these new expenses will undoubtedly come soon after they are implemented.
With all of these important changes coming, it’s important to be as prepared as possible. The companies with the greatest forethought will profit from this situation, rather than suffering the loss of revenue.