Aaron Block, CEO of BayRu LLC describes how the political situation in Ukraine/Russia creates concerns
1. Question: Why is Crimea so important to Russia and Ukraine?
Crimea was Russia and many of its citizens speak and identify as Russian. See more here: http://nytimes.com/2014/03/07/world/europe/crimea-russia.html
2. Question: What are the biggest concerns North American companies face in Russia/Ukraine due to today’s unrest in Crimea?
Ukraine’s economy has been weak for many years and that is unlikely to change in the short-run. Oh the other hand, Russia has been an engine for global ecommerce growth. Prepare for more volatility. As a Russia-focused business, our major concerns today include: limited consumer spending due to a potential economic crisis in Russia, fewer purchases of international goods and services due to additional weakening of the Russian ruble (follow the ruble/USD changes here: http://www.exchangerates.org.uk/RUB-USD-exchange-rate-history.html).
E-commerce is expanding, worldwide. McKinsey has predicted that by 2020, 15% of e-commerce will be cross-border. Whereas today consumers still form only a small niche market for the global parcel-delivery companies, in 2020 as many as half of the deliveries worldwide will be for consumers.
Overall U.S. freight outlook tonnage will rise nearly 25% and revenues from that freight will surge above 70% over the next decade, per the latest long-term freight forecast released by the American Trucking Assns. (ATA).
"Almost all KPIs are suspect till you get to the depth of how they are defined, how they are calculated, how the data is collected and analysed".