FY2022 Business overview The UK freight forwarding market has experienced extreme volatility over the past year specifically within ocean, with rates peaking at $13k a TEU. This has now softened as supply seeks to meet demand. The forwarding business has provided its customer base with support around working capital funding, working closer than ever to ensure continuity of service for customers in the most challenging of times. Ocean, Air and Customs services continue to support our global customer network meeting their needs of high-level customer service and complete legislative and legal compliance when crossing the UK boarders. Yusen UK continue to train and develop all colleagues proactively to ensure we maintain the highest levels of governance possible. FY2023 Business strategies and forecast The UK forwarding business continues to grow successfully on the back of focused effort around retention, supporting customer growth plans and expanding its offering to new customers. The fundamental vision of being our customers preferred supply chain partner is at the heart of what we do. We have accelerated the digitisation of our processes gaining significant benefits from focusing on providing the tools and training to harness the capabilities and proactive culture of the business. As we move to our future state, digitalisation will provide the end-to-end visibility our customers demand for all services provided. Our ESG story and mid-long term business plan 2023 – 2025 is the preparation period for our next 10 years. Seeing the rise in demand of digital and eco-friendly solutions, in phase 3, we will begin our Quest for AFFX – Air Freight Forwarding Transformation, comprised of DX – Digital Transformation and GX – Green Transformation, the Key Differentiator in the coming 10 years. AFF-Digital Transformation (DX) brings us new touchpoints with existing and untapped opportunities/ market through digital solutions. DX will provide solutions through digital platforms and drive the evolution of our communication methods between us and the customers. AFF-Green Transformation (GX) adds a new element called ‘Sustainability’ to our Key Success Factors, in addition to the existing ‘Scalability’ and ‘Profitability’. GX will become the foundation to elevate the value of all our air freight forwarding businesses. Going forward to the next mid-term, the ocean forwarding industry will face challenges such as overcapacity, geopolitical uncertainties, changing regulations and carriers entering the forwarding market. To tackle these challenges, ocean freight forwarding is determined to get back on track on business growth with profitability, with Trans-Pacific Westbound and Intra Asia trades in particular. Trans-Pacific Eastbound will continue to be the most profitable trade, and Intra Asia is our core strength and a steady revenue stream. In addition, ocean freight forwarding will focus on enhancing procurement and operation efficiency through the Upstream Project to make our business sustainable. We will strive to explore new customer segments, while inviting our existing customers to use the online platform to streamline our process through Digital Transformation. For ESG-conscious customers, ocean freight forwarding commits to becoming the front-running supply chain logistics company with a clear roadmap for Green Transformation. These strategies will ensure ocean freight forwarding remains a profitable and sustainable business unit.
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September 2023
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