Over half of global logistics firms and goods manufacturers impacted by global ‘shocks’, research finds  – London Business News | Londonlovesbusiness.com

Customs and trade solutions provider Customs Support Group identifies geopolitical disruption, complex customs regulations, internal skills shortages and the challenge of AI as major market hurdles

More than half [51%] of global logistics firms and goods manufacturers have been affected by global shocks such as the Suez Canal blockage and the Ukraine war over the last 12 months, according to new research from customs and trade solutions provider, Customs Support Group [CSG].

The research, which presents key insights from 33 organisations comprising of global freight forwarding companies and multinational manufacturers within the automotive, retail, consumer goods and FMCG industries, also revealed complex customs regulations, lack of internal expertise and capacity, together with the impact of AI are the top challenges faced in today’s daily trading environment.

To help overcome these issues, 45% revealed that they required specialised expertise to ensure prompt response and compliance with local and international customs regulations, and in dealing with stricter environmental regulations.

In addition, 60 per cent of respondents revealed that they outsource customs tasks to help with a lack of capacity, with a further 45% revealing they outsource to access specialist knowledge.

Despite many large international companies focusing on building in-house customs and compliance teams for self-reliance, 48% revealed outsourcing to obtain industry-specific knowledge was important, together with access to more advanced digital solutions to enhance efficiency and data accuracy.

Discussing the research, John Wegman, CEO of Customs Support Group, said: “We have identified three consistent trends in international trade – the increasing complexity of regulations and associated risks, further intensified by recent geopolitical disruptions; the expertise and knowledge gaps companies face in addressing these issues and the high expectations for AI, coupled with concerns about potential errors.”

“Ultimately, all three trends can be distilled to a common concern: the fear of non-compliance risks. Such concerns underscore the vital role of customs knowledge and expertise—what we call Real Intelligence—as the key to enhancing AI or navigating the complex and evolving regulatory landscape amidst geopolitical disruptions,” added John Wegman.

“This context explains the growing trend of outsourcing customs handling operations to professionals. As Europe’s leading and largest customs solutions provider, with more than 1,700 industry experts, we are proud to offer our clients peace of mind, ensuring their goods move across borders efficiently and risk-free.”

Headquartered in Rotterdam, Netherlands, Customs Support is a leading full-service and digital customs partner in Europe.

This latest research – being the Group’s latest Strategic Radar Customer survey – represents international logistics service providers (LSP) and goods owners (GO) based in five different countries across Europe.