According to media reports, Flexport, which was considered one of the fastest growing digital freight forwarders in 2022, is to cut 20% of its staff, equalling as many as 500 employees.

This is the third round of layoffs for the company in just over a year, highlighting how logistics companies have been under pressure to squeeze their budget to be able to remain profitable.

The news comes as the UN’s trade and development body said that the situation in the Red Sea, geopolitical tensions affecting shipping in the Black Sea ( due to Russia-Ukraine conflict) as well as the impacts of climate change on the Panama Canal, have given rise to a complex and “profound” crisis in global trade.