Note: Today’s post is part of our “Editor’s Pick” series where we highlight posts published by our sponsors that provide practical knowledge and advice on timely and important supply chain and logistics topics. This post by Sandy Bhat from e2open’s blog highlights several key trends in global trade “that will have broader implications for businesses in the new year and beyond.”
As the new year rolls in, it is a perfect time to reflect on the trends that shaped the global trade landscape during the last 12 months. The benefit of hindsight is that it gives us an idea of how some of these trends can be baked into our supply chain strategies and global trade management (GTM) plans going forward.
Several trends solidified in 2023, many of which had undercurrents already in play from years prior, leading to major shifts in global trade flows and compliance landscape. In this blog, we will briefly discuss the key trends that will have broader implications for businesses in the new year and beyond.
Geopolitical tensions in many parts of the world continue to make a significant impact on global commerce and trade. For instance, escalating trade tensions between the US and China, as well as ongoing conflicts in Eastern Europe and the Middle East, have led to the implementation of stricter export control and sanctions regimes. Just in the last few weeks of 2023, the Red Sea, a critical conduit for global shipping, became the focal point of tensions with militant attacks on ships traversing this region, raising concerns over potential disruptions to global trade. In order to mitigate risks from these ongoing tensions, businesses may need to reevaluate their supply chain strategies, consider new sourcing regions, and navigate different borders to move their goods effectively.