What have been the main developments for Leschaco over the past year?

Coming out of the pandemic and having to deal with under capacities in the supply chain, delays in sailing schedules, high prices, etc. put significant pressure on everybody, which continues today. Freight prices have come down, but organizing space on vessels remains challenging due to ongoing geopolitical challenges, such as the war in Ukraine, the crisis in the Middle East, disruptions at the Red Sea, and political tensions in Asia. Changes in consumer behavior and low growth in many world economies pose further challenges. I am proud to say that Leschaco has remained true to its long-term vision known as the Big Picture 2030 strategy. Within this vision, we aim to grow into the world’s leader in complex logistics solutions. 

Could you help our readers understand better the current environment for global logistics?

A series of global disruptions, most recently the Gulf of Aden linking the Red Sea and the Arabian Sea as well as the recent closure of the Port of Baltimore, have lengthened shipping routes, putting pressure on vessel availability. On the other hand, a downturn in Chinese demand and ongoing geopolitical tensions have put into question the architecture of global trade. Nearshoring and onshoring have been a hot topic for the past few years and are now becoming a reality. A big factor is the Chinese underwhelming recovery in the Chinese economy, with more products being shipped out of China into export markets than before. The government is taking measures to stimulate the economy, and things could change moving forward. China’s economic health and underwriting policy will impact the outlook for the rest of the markets moving forward. I believe there will be a shift in the wind again by the end of the year. While East Asian countries like Korea and Japan have reached a high level of economic maturity, with moderate growth expectations, Southeast Asia is waiting for the ‘big bang’ and is ready to take off. Ongoing nearshoring and onshoring investments are supporting this shift.

How does Leschaco manage to protect its margins in the current volatile environment? 

One of our strongest differentiators as a family-owned company with a global reach is forging strong personal relationships with customers, which allow us to clearly understand their needs and the critical aspects of their business. Doing business in a fast-paced world where things are ever-evolving requires flexibility and agility while still focusing on who and what you want to be in the future, and this is what we are here for.

What role does Southeast Asia play within Leschaco’s Big Picture 2030 strategy? 

Leschaco’s Big Picture 2030 strategy is a truly global approach involving all our offices, and we have initiated several strategic initiatives to ensure the success of our journey. The company is undergoing a cultural journey with generational changes, with Constantin Conrad assuming the role of CEO earlier last year. This evolution comes at a time when we see deeper shifts in customer expectations. Leschaco aims to unite all our employees, customers, and business partners under the same values, purpose, and vision. Our journey is also business-oriented, ultimately benefiting our customers using geographic reach, technology, and customer engagement, including in Southeast Asia and the greater APAC.

What are the pockets of opportunity you see in the medium term?

By fostering close relationships, Leschaco can increase our customers’ awareness of all the services we offer, particularly for the chemical industry, which includes bulk containers, tank containers, chemical warehousing and distribution of both hazardous and non-hazardous goods, customs clearance, rail services, and air freight. We will continue to promote these services and have launched a global initiative to intensify our marketing activities and ambitions. 

Do you have a final message for our international audience? 

Leschaco recently opened a new state-of-the-art warehousing and distribution facility in the logistics hub Moerdijk in the Netherlands, which is strategically located between the busy ports of Rotterdam and Antwerp and offers optimal connectivity to the European hinterland. The facility covers an area of 29,000 square meters and offers space for around 45,000 pallets in five sections, of which four are specially equipped with CO2 extinguishing systems for the safe storage of hazardous goods.