World economy has been functioning in ‘new economic conditions’ for 7 moths already. It goes without saying that new conditions influence activities of companies from different spheres. Nevertheless macroeconomic factors that caused these changes are similar for all brunches.
One of the main factors that determine activities of logistics companies is decrease in export/import between countries. Graphs #1 and #2 show that the first fall of export and import in Belarus and Russia first occurred in November, 2008 and was followed by another drastic decrease in January, 2009. According to the statistics announced by the Customs Authorities of Belarus, import to the country in January-February 2009 decreased by 32.5% if compared to January-February 2008. Import reduction was mostly observed in the following brunches: pulp-and-paper industry, light industry, as well as construction materials. According to the Customs Committee of the Russia Federation import from non-CIS states to Russia made up $40630.4 million which was 39.8% less than in 2008.
Graph #1. Export/Import in Belarus 2008-2009 
Graph #2.Export /Import in Russian Federation 2008-2009
It is obvious that changes in export/import volumes couldn’t but changed sales results in transport and logistics companies. In October could be observed that demand of logistics services began to fall. Competition between companies of this sector was rising. These led to the falling of freights. Transport companies and freight forwarding operators began to decrease prices to the break even level and later even more. Such drastic measures led to not less drastic results – bankruptcy of transport companies and freight forwarders.
Graph #3. Average freights 2008-2009 estimated by STA Logistic Ltd. 
Graph #3 shows that freights decreased in twice. And now the question is which results of freight decrease are experienced now and what expects us later.
First of all, the most obvious result of price dynamics is the growth of business competition to the ‘normal’ level. Economic crises is a so-called ‘stress test’ that is to determine the ability of companies to survive in difficult conditions of price competition.
Secondly, there is a great number of offers from freight forwarding companies. As a result other companies can choose the most suitable logistics operator with the most interesting combination of price and quality.
Another point that should be mentioned is that prices on freight forwarding services have reach the bottom. It expected that they will be rising. Sea lines have already began to raise their rates (Maersk, Hanjin etc.)
In the beginning of the year 2009 freight forwarding companies intensified their marketing activities that resulted in the growth of demand. However, these activities didn’t lead to the growth of profits, which means that marginal profits are decreasing.
Rapid changes at the market influence the activities of our company as well. For the last 7 months we have been implementing those principals that are to ensure stable development in the new economic conditions:
1. We have minimized our budgets. At the same time we didn’t cut salaries in the company in order not to contradict our social policy.
2. We have reconsidered terms of payment with our partners in order to reassure payments from clients. Thus we guarantee payments from us to our partners.
3. Among other measures is intensification of our sales processes.
Finally it should be mentioned that we are rather optimistic about the fact that companies have realized that crisis will not be over tomorrow or in a month. In fact it has formed new economic conditions for our activities. Fortunately, the shock about the drastic changes in the market is over, and now more and more companies are ready to adopt to new conditions.
As far as our activities are concerned, it should be pointed out that we are ready for realistic as well as pessimistic scenarios, with hopes for the optimistic.
And we would like to wish our partners not to stop on their way to the goals, overcome new obstacles and to become stronger!
Programming by - Dew Point
