welcome 2 IN THE CHAIR


containers that was 3x what they would usually pay, they should book it. This is on the basis that it’s a container that will physically move – and it’s still cheaper than airfreight.


IT’S TOUGH OUT THERE BUT IT’S A NEW YEAR AND A TIME FOR SOME POSITIVITY


It is my pleasure to write the first Vigilant ‘welcome’ message of 2021 and, on behalf of the TAPA teams in all three regions, I wish all of our members, partners, friends and colleagues a very happy and, of course, healthy New Year.


After all the trials and tribulations of 2020 for all of us as individuals, for our businesses, and for the countries we live and work in, I hope we are all feeling more positive about 2021 and the year ahead. The start of a new year, under normal circumstances, would be a time for launching new initiatives, for energising teams, and setting ambitious targets for the following 12 months. Even in this still uncertain world, I hope – and expect – this is still the case in most companies.


Nonetheless, companies shipping goods around the world face substantial challenges, which all pose threats to the resilience, cost and security of their supply chains.


Air cargo capacity is still drastically reduced by the impact of the virus on passenger flights. Global aviation data firm, Cirium, says that from January-December 2020, 49% fewer flights operated. This is making airfreight capacity harder to obtain and adding a significant premium to Manufacturers’ logistics costs as struggling airlines drive up their prices in response to demand exceeding supply.


The ocean freight market is in similar disarray. While last year ended with a capacity issue, now the lack of containers is bringing many freight movements to a stuttering halt. Again, the shortage of TEU containers is causing prices to rocket. In one media statement, a TAPA member was quoted advising companies that if they saw a deal for expedited ocean


In 2021, the resilience of supply chains will be more tested and more challenged than ever before – and this disruption will place added pressure on the security of cargo movements.


Off the west coast of the US right now, US Pacific ports have a backlog of over 30 large cargo ships and tens, some say hundreds, of thousands of containers waiting to be unloaded. Imagine how many individual products this represents. With no immediate end in sight to this disruption, and with $900 billion worth of goods transported to and from the US each year by container ships, it’s a major headache for both importers, exporters and consumers.


And, in Europe, added to the complications presented by Covid, there’s the additional dynamic of coming to terms with Brexit, which, in its first few weeks, has brought expected delays and confusion.


In 2021, the resilience of supply chains will be more tested and more challenged than ever before – and this disruption will place added pressure on the security of cargo movements. TAPA members will be front and centre of helping to manage the consequences of everything we are seeing in markets all over the world – and our Association will have an important role to play in supporting them.


There is no doubt in my mind that TAPA will grow globally this year – as it did in 2020 – because more businesses will be reaching out to associations and organisations that can give them insight, intelligence and help to rebuild their supply chain resilience. We may all need some help along the way - and I am confident the TAPA Family will step up to provide it. So, let’s stay positive, connected and confident that 2021 will, ultimately, be a year of recovery and better times ahead.


THORSTEN NEUMANN President & CEO, TAPA EMEA


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