Challenges of international logistics in the face of financial crises

Abstract

This article explores the challenges international logistics faces during financial crises and underscores the pivotal role of multimodal transport in the global economy. Financial crises disrupt logistics by reducing capital availability, decreasing demand, and causing currency fluctuations, which affect supply, production, and distribution logistics. Multimodal transport involves using multiple transport modes to optimize costs and efficiency in international trade. Despite its benefits, multimodal transport lacks comprehensive international regulation, necessitating adherence to various national and international transport laws. The article highlights the significant impact of recent crises, such as the COVID-19 pandemic and wars, on supply chains, resulting in delays and disruptions. It also discusses the vulnerabilities of the forwarding industry to financial crises, noting the sensitivity of logistics to external shocks like oil price fluctuations and geopolitical tensions. To address these challenges, the article proposes mitigation strategies such as supplier diversification, transport route optimization, and efficient inventory management through Lean Management and Just in Time methodologies. By adopting these strategies, companies can enhance their resilience and maintain operational efficiency in the face of financial uncertainties. This comprehensive analysis aims to provide a deeper understanding of the complexities of international logistics and offer practical solutions to mitigate the adverse effects of financial crises on global supply chains.