This fireside chat recap is from Tuesday, the first day of FreightWaves’ Global Supply Chain Week.
FIRESIDE CHAT TOPIC: Geopolitical pressures on freight transportation.
DETAILS: When the COVID-19 pandemic hit, spending on many products surged while spending on services dropped. The market is now shifting back to normal, and Walter Kemmsies, the managing partner of the Kemmsies Group, shared his observations on the economic impact of those shifts.
KEY QUOTES FROM KEMMSIES:
“In the second quarter of 2020 there was massive panic and there was massive overreaction. All of these companies that benefited from people who were doing more from home overinvested.”
“A lot of these e-commerce companies forecast off the peak and one of the biggest things you can do wrong is forecast off a historical peak. It resulted in way too much investment by tech companies, bicycles and trading companies.”
“The smaller retailers are not the ones who over-ordered. We still have not seen the smaller retailers rebuild their inventories to where they need to be. But it is not surprising to see reports that the larger retailers are still canceling purchase orders from Asia.”
“The inflation problem was always a supply problem.”
“When the pandemic started, we fired a lot of people. Now they overhired them and we’ve seen some of the bigger retailers out there laying off staff and we’ve got the service sector struggling to hire enough people so we can get back to flying the same number of airplanes and running the same number of trucks.”
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now