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Difficulties hindering the development of the international logistics industry

2024/7/19

Difficulties hindering the development of the international logistics industry mainly include the following aspects:

I. Uncertainty in the global economic and trade environment
    Weak global economy: Fluctuations in the global economic situation directly affect the volume of international trade, which in turn affects the demand for international logistics. The weak economy leads to a decrease in trade activities and a decline in the volume of logistics business.
    Trade barriers and policy restrictions: Trade barriers and policy restrictions between different countries increase the complexity and cost of logistics transportation. High tariffs, import restrictions, and the complexity of trade agreements all add to the difficulty and uncertainty of logistics transportation.

II. Supply chain instability
    Supply chain disruption risk: The global supply chain is susceptible to various factors, such as natural disasters, political conflicts, epidemics, etc., leading to supply chain disruption. This will bring huge losses to logistics enterprises and affect the stability and reliability of logistics services.
    Insufficient supply chain visibility: Due to the asymmetry of information and the independent operation of each link in the supply chain, it is difficult for logistics enterprises to understand the real-time situation of the whole supply chain as a whole, which leads to difficulties in collaboration and decision-making.

Third, technology and talent shortage
    Technological challenges: Although technological innovation has promoted the development of intelligence and automation in the logistics industry, logistics enterprises are also facing the pressure of technological upgrading. The introduction of new technologies such as Internet of Things, big data, artificial intelligence, etc. requires enterprises to invest a lot of money and time in research and development and application.
    Talent Shortage: The complexity and specificity of cross-border logistics require appropriate knowledge and expertise. However, there is a shortage of talents and insufficient professional training in the field of cross-border logistics, which limits the development speed and quality of logistics enterprises.

IV. Cost and Pressure
    Cost pressure: Logistics costs include transportation, warehousing, labor and other aspects. Fuel price fluctuations, rising labor costs and other factors may put pressure on the profitability of enterprises. In addition, the construction and maintenance of logistics facilities also require substantial capital investment.
    Pressure on environmental sustainability: Logistics activities have a certain negative impact on the environment, including energy consumption and emissions. With the growing global concern for environmental protection, logistics companies need to assume more responsibility for environmental protection, which also increases their operating costs.

V. Security and Risk
    Security risk: Cross-border logistics faces various security risks from theft, damage, disasters and terrorism. Safeguarding the security and integrity of logistics is an important challenge, and logistics companies need to take appropriate measures to reduce and respond to these risks.
    Legal Risks: There are differences in laws and regulations in different countries and regions, and logistics enterprises need to comply with the laws and regulations of each country to avoid losses due to illegal operations.

In summary, the difficulties hindering the development of international logistics industry involve many aspects, including the uncertainty of the global economic and trade environment, the instability of the supply chain, the shortage of technology and talents, cost and pressure, as well as security and risk. In order to overcome these difficulties, logistics enterprises need to pay close attention to market dynamics and policy changes, strengthen technological innovation and talent training, and improve the resilience and stability of the supply chain, while focusing on environmental protection and sustainable development.