Nobody who works in the shipping industry can be unfamiliar with the cyclical nature of the business. The Great Freight Recession, as some have dubbed it, started in 2021 or 2022, depending on which expert you listen to. Experts may disagree on exactly when it started, but most agree that, as we move toward the end of the year, signs of a recovery are finally appearing. But for how long will the recovery and subsequent bull market last, and how can you protect your income in future shipping industry downturns? Discover the answers to these questions below.
How to Protect Your Income in Future Freight Recessions
If you are still employed in the industry today, you can breathe a sigh of relief, but if this latest freight recession has taught us anything, it is that lean times can persist for far longer than you might imagine. With this sobering thought very much in mind, we thought that now would be an excellent time to talk about how to prepare for the next freight recession and the one after that. So, without further ado, here are our top tips on how to protect your future income as a shipping industry worker.
- Build New Skills and Knowledge – Big shipping companies diversify when times are tough, and we should follow their example. By building new skills and knowledge, you can create new opportunities for yourself in the future, opportunities that lead to additional income streams. The more income sources you have, the less affected you will be by any future market downturns in the shipping industry.
- Purchase Income Protection Insurance – More than any other measure in this list, income protection insurance will help you cover your living costs when times are hard. If the worst comes to the worst, and you are made redundant as a consequence of the next freight recession, income insurance will fill the gap in your earnings.
- Be Flexible – Another way in which large shipping companies protect themselves during market downturns is by maintaining a flexible attitude towards rates and contract terms. We can do a similar thing to protect our incomes. If you are prepared to negotiate your pay and work more flexible hours when business is slow, you may be able to hold onto positions that would otherwise have ended in redundancy. You can also make yourself more valuable in the eyes of your employer by being flexible about the type of work you are prepared to do when things are quiet.
- Establish Good Relationships With Customers – While this advice applies primarily to sales agents and other people in customer-facing positions, it could prove useful no matter what position you currently hold. If you can become a friend as well as a trusted advisor to your customers, you will become more valuable in their eyes. This, in turn, will make you a more valuable asset to your employers.
Invest in learning, purchase income protection insurance, be flexible, and treat your customers well. These are the keys to surviving a freight recession as an employee.
Photo by Martin Damboldt: