UP FRONT 01
EDITOR’S LETTER
It is traditional at this time of year to reflect on the year about
So, as we look towards an eventual re-emergence into
to end and consider what might come in the next. That was
a re-normalised world some time in 2021, we all have to look
something I did in the December 2019 issue, running through
at how we will manage in a much more straitened economic
the growing environmental pressures and increasing calls for
environment. Many of the logistics sectors covered by HCB
greater sustainability in industrial activity.
have fared fairly well thus far, though they have had to cope
I finished that piece by saying: “One thing is clear: ‘business
with major changes in product flows – but then that is what
as usual’ is over and the future will be very different – although
logistics companies are trained to do. There are some
in what way is impossible to tell.”
companies that have suffered, mostly those exposed to the
I certainly did not expect a global pandemic to take over the
weakness in the upstream oil and gas sectors, where the
world, upturning expectations and plans, although the signs were
slump in demand for transport fuels caused prices to crash
there for those who had cared to look. The novel coronavirus had
earlier in 2020 and where activity is only now beginning to
already been identified in China – that’s why it’s Covid-19, not
pick up.
Covid-20 – and even before then there had been those warning of an imminent outbreak of a novel infectious disease.
Further, when we do eventually get back to ‘normal’ – whatever that will look like – there will still be the
In business terms, the airline industry, cruise operators and
underlying environmental factors to deal with. While the
the hospitality sector in general have suffered severely during
rest of us have spent 2020 focused very much on staying
the course of 2020. Demand for new cars and houses has slumped
alive and keeping the effects of the pandemic at bay, the
as individuals have revised their priorities and concentrated on
regulators and supra-national authorities have been busy
conserving cash and spending only on essentials. Businesses
beefing up their expectations of action on climate change.
themselves have taken a similar approach, delaying investment
Decarbonisation and sustainability are going to be the
plans and concentrating on the short term. Refinancing has been
themes of the coming years.
popular, particularly as interest rates have sunk to lows not seen for decades. We now appear to be in the midst of the anticipated ‘second
It has been interesting to see over the past few months that the petrochemical industry and its logistics partners are beginning to take the transition seriously and we have seen
spike’ in infections, with further lockdowns and restrictions
plenty of examples of innovative projects and approaches,
imposed – largely in order to keep the demand on medical
especially in Europe. There will be more of that to come, and
facilities at a manageable level. Some have posited a ‘third spike’
in other areas of the globe. But, on the basis of what I said
yet to come, although it is hoped that research into a vaccine will
a year ago, I do not feel confident in making any more specific
help head that off. But it is clear that the economic impact of all
predictions. Enjoy the ride!
this mayhem will be massive.
Peter Mackay
WWW.HCBLIVE.COM
