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C.H. Robinson Names Thomas Schoett Vice President of Latin America

C.H. Robinson

C.H. Robinson Names Thomas Schoett Vice President of Latin America

C.H. Robinson, one of the world’s largest logistics platforms, is proud to announce Thomas Schoett as vice president, Latin America (LATAM), Global Forwarding. He will report to Mike Short, president of Global Forwarding at C.H. Robinson.

Thomas joined C.H. Robinson in May 2017 as the regional director of South America. In his time with the company, he has improved global alignment and increased our presence on regional trade lanes that are important to our customer base. His efforts continue to add to our global suite of services and the ability for customers to work with one provider for all their logistics and technology needs.

“Thomas brings a deep knowledge of the region, logistics expertise and leadership skills to this role,” Short said. “He will focus on creating synergy within the region and further develop global trade lanes to and from LATAM.”

Latin America is an important part of the company’s Global Forwarding growth strategy, and focused strategic alignment and strong partnerships are critical for continued success.

“I am delighted to be leading the LATAM team,” Schoett said. “Through our network of experts in LATAM and around the globe, we continue to act as an extension of our customer’s teams and drive personalized solutions according to their needs in the region. Additionally, our technology built by and for supply chain experts offers market-leading solutions and real-time visibility to drive better outcomes for our customers’ supply chains.”

Uncertainty in Today’s Air Market: What it Means for You

Reoccurring annual events, like the holiday season, typically bring predictability to air shipping. But lately, out of the ordinary events have disrupted the seasonality we typically expect. The best way to deal with the ever-changing peaks and valleys in air capacity throughout the year is to know both the historical patterns and potential air market disruptors.

The cyclical nature of air freight

Air freight service predictably follows the law of supply and demand. When shipping volumes spike, space on airlines becomes harder to secure and prices go up. And the opposite is true, too. If shipping volumes diminish, space on airlines becomes readily available and the prices go down.

As you might expect, the holiday peak season is one of the busiest shipping periods of the year around the world—including for air. But there are other seasonal surges to be aware of as well. The graphic below visually represents the seasonality of the air market in years’ past.

New disruptors to the air freight market

We’re just over halfway through 2019, and already it’s quite a different market than we’ve seen in the past. Several disruptors are causing a great deal of uncertainty.

Tariffs on Chinese goods

The ongoing trade war is one of the biggest disruptors to air shipping this year. Earlier tariff changes did not make a huge impact on air shipping. But demand for air freight shifted significantly when enough shippers preemptively repositioned inventory prior to the June 1, 2019, deadline. On May 31, 2019, the United States Trade Representative (USTR) announced the deadline would be extended to June 15, 2019.

Ecommerce and high-tech goods

With the growth of ecommerce and high-tech products flooding our markets, air freight is quickly becoming the go-to mode of transportation for many shippers—any time of year. Combined with the promise of two-day shipping, it’s often the only way to meet customer demands.

Adjust your air freight strategy based on the market

With air freight volumes lower than we’ve seen since the 2008 recession, now may be the ideal time to update your air freight shipping strategy.

Choosing air freight can be a strategic way to lower inventory levels in the United States. Finding a balance between inventory costs without sacrificing customer delivery expectations often requires expertise. The air experts at C.H. Robinson are available in offices around the globe to help manage your air freight and ensure any problems are resolved in real-time.

You may even consider that if air freight rates dip low enough, you could make up the difference (at least in part) of the added tariffs on Chinese goods.

The air freight market is a complex ecosystem that will likely remain uncertain for some time. While this uncertainty lasts, you may want to switch to a quarterly planning strategy to avoid a long-term commitment when you don’t know what’s coming.

What’s going to happen?

While inventories in the United States remain high, it’s likely that air shipping volumes will remain low. The best way to insulate your company and your relationships from today’s air market is to stay flexible. Adapt quickly to ensure you can take advantage of soft markets while still buying appropriately during peak seasons.