b'14American Journal ofTransportation ajot.comAllianz Risk Barometer 2023:(RESTRUCTURINGcon- hasaprohibitivecosttothe tinued from page 6) infrastructure. Ideally, funding Cyber and business interruption top threatsthatreportedlywillamountfor transforming the equipment toover3,000trucksandshould also include infrastruc-as economic and energy risks rise 5,000 trailers. In June, Fast- tureworkattheterminalto frate(58)madeadealtoachieve the timelines they are AllianzGlobalCorporate&Specialtyruption. At the same time, they see inflation,purchase a majority stake inconsidering. The ports and util-(AGCS) publishes 12th annual survey of keyan impending recession, and the energy crisisChallengerMotorFreight,ities need to expedite the devel-business risks around the world, according toas immediate threats to their business. Compa- one of Canadas largest car- opment of their zero-emissions 2,700+ respondents. niesin Europe and in the US in particular riers.Undertheagreementinfrastructuremasterplanning Pressing macroeconomic concernsinfla- worry about the current permacrisis resultingChallengerwillstilloperateanddevelopcapitalimprove-tion, the energy crisis and possible recession from the consequences of the pandemic andindependentlytherewasment plans so that MTOs can arefastrisers,whileNaturalcatastrophesthe economic and political impact from ongo- little overlap between the twodeploy equipment sequentially andClimatechangedropdowntherank- ing war in Ukraine. Its a stress test for everytrucking companiesbut theand cost-effectively. ings. Pandemic outbreak plummets down thecompanys resilience. consolidation creates another list of worries as Covid-19 restrictions haveThe positive news is that as an insurermega-carrier.i MpleMenting anDlargely been removed. we see continuous improvement in this areaButsomeofthemorer eViSing thel egiSlationIt is both stability and change in the Allianzamong many of our clients, particularly aroundinterestingM&AactivityWhile MTOs favor reduc-Risk Barometer 2023. Cyber incidents and Busi- makingsupplychainsmorefailure-proof,didntinvolveacquisitionsingemissionsgeneratedat ness interruption rank as the biggest companyimprovingbusinesscontinuityplanningandby other trucking companies.ports, there are a few critical concernsforthesecondyearinsuccessionstrengtheningcybercontrols.TakingactionMaersk,theworldssecondadjustments to the legislation (both with 34% of all responses). However, ittobuildresilienceandde-riskisnowfrontlargest ocean carrier, acquiredthat would enable MTOs to be is Macroeconomic developments such as infla- and center for companies, given the events ofLosAngeles-basedPerfor- morealignedwiththegoals tion, financial market volatility and a loomingrecent years. manceTeam(51).Foroldand provisions of the Inflation recession (up from #10 to #3 year-on-year), asIn 2023, the top four risks in the Allianztime analysts it was a curiousReductionAct.Mostimpor-well as the impact of the Energy crisis (a newRisk Barometer are broadly consistent acrossmove as a couple of decadestantly, the government should entryat#4)whicharethetoprisersinthisall company sizes globallylarge, medium,ago,containershipoperatorsadjust the timelines and sup-years list of global business risks, as the eco- and smallas well as across core Europeangot out of the trucking busi- portMTOsintheplanning nomic and political consequences of the worldeconomies and the US (energy crisis excepted).nesstoconcentrateontheirprocess of climate initiatives, in the aftermath of Covid-19 and the UkraineRisk concerns for businesses in Asia Pacificcorebusinessofoceanship- including granting a tax credit. war take hold. and African countries show some deviation,ping. And the Maersk acqui- Current timelines are unrealis-sition wasnt the only oddity.tic and will likely fall short of DBSchenker,oneoftheintended outcomes.worlds largest 3PLs, acquiredPlanningandpermitting USA Truck (18).forequipmentandcharging Willtheseacquisitionsinfrastructureshouldbekept be the beginning of a trendfrom, sequenced or combined anentirelynewroadforwith the development of cli-thetruckingindustry?Inmateactionplans.Waiting the coming decade, will thefor the completion of a port-NorthAmericantruckingcommissioned climate action industryberestructured?plan will delay the implemen-Maybeasinvestmentintationofnear-zeroemission thesupplychainisclearlyequipment.Werecommend attractivenowandtruckingthat the EPA maximize project is the key link in the chain. contract windows and clarify whenMTOsmustspend, claim and liquidate all funds.(ROADcontinued fromLegislators could restruc-page 9) turetheprogramtoprovide consideredandapprovedindeeperassistanceforU.S. atimelymanner.TheBuymanufacturers that build spe-American clauses of the leg- cializedterminalequipment. islation assume that iron, steelToaccelerateequipment andothermaterialscanbedesign and manufacturing for manufactured in the U.S. andequipment that is unavailable these timeframes are unlikelyin the U.S., legislators could as well. The Clean Ports pro- revise the Inflation Reduction grama part of the InflationAct to allow overseas equip-Suchpressingconcernscallforimmedi- reflecting the different impact of the ongoingReduction Actmust accom- mentdevelopmentwitha ateactionfromcompanies,explainingwhywar in Ukraine and its economic and politicalmodateproductionprocessesprocess to transition to Amer-bothNaturalcatastrophes(from#3to#6)repercussions. and timelines for replacement,ican-madeproductsover and Climate change (#6 to #7) drop in the annualincludingallowingoverseastime, such as joint ventures.rankings, as does Pandemic outbreak (from #4D igital anDD iSruptionD angerS equipment development whenMTOsandotherstake-to #13) as vaccines have brought an end to lock- Cyber incidents, such as IT outages, ran- required,asabridgingstrat- holders have an opportunity to downs and restrictions. Political risks and vio- somwareattacksordatabreaches,ranksasegy while U.S. domestic man- voice their opinion about how lence is another new entry in the top 10 globalthemostimportantriskgloballyfortheufacturers switch to on-shoreto structure the program for suc-risks at #10, while Shortage of skilled work- second year in successionthe first time thisproduction. cess. Operators had until Janu-forcerisesto#8.Changesinlegislationandhas occurred. It also ranks as the top peril inary18,2023,tosharetheir regulation remains a key risk at #5, while Fire/ 19 different countries, among them Canada,C hallengen o . 3:concernsandencouragethe explosion drops two positions to #9. France, Japan, India, and the UK. It is the riski nfraStruCture EPA to adjust their approach FortheUnitedStates,Businessinterrup- that small companies ($250mn annual rev- Thedirectivetotransi- tothisprogram,which,if tion tops the list again followed by Cyber incidents.enue) are most worried about. tiontozero-ornear-zero- implementedinrecognition Forthefirsttime,Macroeconomicdevelop- For many companies the threat in cyberemissionsequipmentwillofthereal-worldconstraints ments hit the U.S. list in the third spot. View thespace is still higher than ever and cyber insur- significantly increase MTOsfacing MTOs, could be a sub-full global, country and industry risk rankings. anceclaimsremainatahighlevel.Largeelectricityneeds.Theutilitystantialcatalysttoachieve The Allianz Risk Barometer is an annualcompanies have become accustomed to beinginfrastructuremustbepre- this administrations emission businessriskrankingcompiledbyAllianztargeted and those with adequate cyber secu- paredtosupportthehigherreduction goals.Groups corporate insurer Allianz Global Cor- rity are able to repel most attacks more effec- energydemandrequiredto porate&Specialty(AGCS),togetherwithtively. Increasingly, more small- and mid-sizeconverttheMTOsequip- a Bout thea uthorother Allianz entities, which incorporates thebusinessesarealsobeingimpacted.Thesementtozeroemission.RobertMurrayispresi-views of 2,712 risk management experts in 94tendtounderestimatetheirexposureandHowever,preparingutilitydent of the National Associa-countries and territories including CEOs, riskneed to continuously invest in strengtheninginfrastructure is outside mosttion of Waterfront Employers managers, brokers and insurance experts. It istheir cyber control framework, says ShanilMTOsscope.Otherenergy(NAWE),thevoiceofthe being published for the 12th time. Williams, AGCSBoardMemberandChiefgeneration technologies suchU.S.marineterminalopera-AGCS Chief Executive Officer JoachimUnderwriting Officer Corporate, responsibleashydrogenalsoneedator(MTO)andstevedoring Mueller comments on the findings: For thefor cyber underwriting. longer lead time. industry in Washington, DC. second year in a row the Allianz Risk Barom- According to the Allianz Cyber Center ofConvertingrubbertyredNAWE promotes marine cargo eter shows that companies are most concernedCompetence,thefrequencyofransomwaregantries(RTGs)orsimilarefficiency,securityanda about mounting cyber risks and business inter- (THREATScontinued on page 15) equipmenttozeroemissionsclean environment.'