A new year, a new set of issues

by Jacob JosephDecember 1st, 2007 | Editorial, Issue 3 Dec/Jan 2008

Three challenges to watch out for in 2008

The year 2007 is one that will be very special to all of us here at LOG.Middle East. It marked the start of our operations in the region and, judging from the response of our readers, we are already making a mark for ourselves in the logistics industry.

In this special issue, we look at the year that was and the challenges the industry will face in 2008. Three things that will test the industry this year are:

SECURITY No freight forwarder or supply chain manager can afford to ignore security. The United States HN1 law requires 100 per cent scanning of maritime containers before they are loaded onto vessels heading for the US. The US has defined a five-year period for this implementation, but we have to start preparing now. Will Europe follow the US example? What will this mean for the industry? One thing is certain: new security requirements will bring with them a lot of work, in terms of screening and data provision. We will see a slew of new entities aimed at helping companies meet these standards. Expect an industry of security providers for logistics companies to grow.
INFLATION Prices are only going to go up. In this issue of LOG.Middle East, industry players such as Dr. Edward Roderick with Agility have identified inflation as one of their biggest concerns. The price of fuel, in particular, is a complaint echoed by Ingo Roessler of Royal Jordanian Cargo, Sujit Subramanian of Lufthansa Cargo and Prakash Nair of Emirates SkyCargo. In fact, Nair speculates that we’ll soon be talking of oil reaching US$150 a barrel.
FREE TRADE No doubt, free trade is good for our business. But the GCC common market, if it becomes a reality, will bring with it a string of new requirements for logistics providers. We will see freight forwarders scrambling to change their routes if Saudi Arabia opens its border. And we will see the whole industry scrambling to understand new prices, new labels and new rules.

With the announcement of the Gulf Common Market comes uncertainty. Is this market a mere political statement or could it become a reality? Is the US$ peg going to stay?

A lot of questions. I know. What’s the best way to stay ahead at uncertain times such as these? Stay informed. As we move into the New Year, I can assure you that our team at LOG.Middle East will continue to bring you up-to date and highly researched articles, with clarity and transparency.

Happy New Year!