by Thy Hang reports 25/10/2022, 02:38

Logistics without borders

The President of the International Federation of Logistics Associations (FIATA) affirmed that it is necessary to join hands in building borderless logistics for a developed digital world with sustainable supply chains.

It is necessary to join hands in building borderless logistics for a developed digital world with sustainable supply chains.

>> Shipping lines "encroach" to open a chain of "threats" to logistics businesses

Talking to Business Forum Magazine, Dr. Ivan Petrov, President of FIATA emphasized, all must invest in digitization, platforms and algorithms in the process. FIATA will also have to do more to support businesses in the digital transformation industry and technology application development.

- Mr. President, in the context of the crisis and instability of the global political economy, what challenges are the logistics industry facing in the coming time?

We always have a global challenge, not that it is less or more, bigger or smaller than before. It is natural that people accept more challenges in the present than in the past. We need to change, not the circumstances require.

Accordingly, there are many challenges coming from the vertical integration of large shipping lines, they "expand", "encroach" to expand the service chain to transport, warehousing, logistics services... or the crisis in the shipping industry on a global scale. Especially for small and medium enterprises, that is a real problem.

Along with that is the challenge of changing logistics service providers driven by shippers. With this integration, these digital platforms decide how work will be done in the future, where work is done across large companies, through platforms. This presents a real problem for small companies. Small companies therefore need to find "niche markets" to be able to develop.

Experts have analyzed and clearly pointed out that digital platforms sometimes go against the way of doing business with each other (business to business). However, companies have to find a way to survive, develop and adapt to this new way of working, and that's why FIATA has created a digital tool and platform to digitize and issue digital bills of lading. Bill of Lading is a multimodal and negotiable document for the exchange of title to goods, and can be used in a digital environment acceptable to the parties concerned. This is a tool specially designed for small and medium companies that do not have transport management software (TMS), they can download it from FIATA and they can participate in fair competition in the global market.

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- So what businesses need to do to overcome challenges and grasp the trends you just mentioned in the current new context?

Adapting and learning how new trends are doing is what businesses need first. Adapting to new technologies, constantly making efforts, looking for customers and satisfaction. Sometimes you find that there are places, platforms with absolutely no good service, you have a problem and they don't solve it for you, no one answers the phone… That's why a lot of activities are needed to help improve service and increase efficiency and customer satisfaction with dedication and commitment to work and doing it in a new way.

Dr. Ivan Petrov, President of FIATA

- As for Vietnam's logistics enterprises, how do you recommend to support them?

Vietnam has participated in international alliances, free trade agreements with major countries and alliances. From our point of view, we are pushing the world to be global, to make connections, to be accessible, and of course in some places it's not that simple. We continue to cooperate in logistics, in a position that the world can do, without logistics there is no trade, transportation of goods and information is our core business.

Therefore, businesses need to work together to provide services to customers. Simultaneously with this requirement, logistics enterprises such as in Vietnam need to link and cooperate with smart cooperative relationships and have partners in all ASEAN member countries, providing services not only in Vietnam but for the whole ASEAN and in the world.

- Vietnam has won the right to host the Congress of FIATA, the International Federation of Freight Forwarders Associations - FIATA World Congress 2025 (FWC 2025), what do you expect from us?

You have been elected in a very good way, and this raises the stature and position of the logistics industry in Vietnam in particular and your country in general. It is not easy being the host of FIATA World Congress and I want to congratulate you on that, of course it is a big and long endeavor, not only once, and you have to have a determination, ready to do it best. You are selected for a reason and also an important selection criterion - the business opportunities that Vietnam can bring.

We are not here for entertainment or swimming, but for business opportunities, to develop opportunities, two-way. It is very important that we want to see that Vietnam creates global business opportunities, and vice versa, the international community also brings experience, personal relationships, networking experiences. and FIATA is an ideal connection platform… thereby affirming that you are the best logistics partner in the world.

To do this, the Government's support is needed for this important event. The Government of Vietnam needs to recognize the great opportunities that the event brings, in terms of local, regional and global economic benefits, benefits from an extensive international network.

- Thank you so much!