Businesses are adapting to the ever-changing technological advancements. This is evident in the freight forwarding industry.
This industry is worried about these changes and what the future holds. The new macro trends are causing confusion and uncertainty to businesses within the freight forwarding sector.
In this article, we are going to look at some of the current challenges freight forwarders are facing and the impact these problems have on the supply chain business and the end consumer.
During the Covid-19 pandemic, several factors are essential in overcoming freight forwarding challenges. They include: Client management, transportation, obtaining, automation, customs compliance, team, circulation, and export routes
Covid-19 has put to the test every process of logistics including the unexpected efflux and demand in eCommerce. It has magnified the importance of small inefficient technologies in the traditional supply chain processes.
Customers demand more daily. Therefore, do not rely on the pandemic as a scapegoat. Immediately look for amicable solutions to those challenges. The sooner you find a solution the higher the chance of staying ahead in the freight forwarding business.
Seasons positively and negatively affect cargo transportation and cost. Several goods get very expensive to ship due to demand and supply changes. The cost of freight also rises.
The freight forwarding industry is affected by seasons due to unfavourable weather conditions. During this period many small ships remain docked and lose on many business opportunities.
On the other hand, large ships are capable of navigating through harsh weather. At such a time, freight forwarding demand increases resulting in price increment.
In addition, bad weather can cause damage to the ship leading to maintenance requirements, increasing the overall operational cost.
3. Bad transport infrastructure
Transport infrastructure is a major challenge. Some roads are in very bad condition. despite freight forwarders communicating on the situation of the roads during transit the roads still need to be in good condition. This enables the delivery to be made on time and that the vehicle does not break down saving on maintenance costs.
4. IMO 2020
The IMO 2020 requires freight forwarders to follow low sulphur fuel laws. These laws dictate that marine fuel should have 0.5% maximum sulphur content.
This regulation puts freight forwarders at a disadvantage prompting them to increase the prices of goods to customers.
5. Container capacity
Shipping containers are normally packed to the brim. If the container is not fully packed the shipper has to pay for the remaining empty part.
As a result, the cost of the transported goods increases due to the additional price of the absent goods. If the container is not completely full, the cost increases.
6. Cyber security
Despite the technological evolution of the freight forwarding industry, cyberattacks are also evolving. Malware is going to be a big concern in the future of freight forwarding.
This problem is not new but a technological advancement in freight forwarding needs protection from cyberattacks. Therefore, freight forwarders need to protect their data to protect customers.
7. Real-time information.
Real-time freight information enables freight forwarders to make decisions based on data. It not only means the location of the containers but also updated rates and making relevant data accessible to anyone in the supply chain.
Lacking real-time data puts you at a big disadvantage. Real-time data is important in the freight forwarding industry since it helps freight forwarders plan ahead and deal with issues before they cause costly interruptions in the supply chain.
The world is changing rapidly and freight forwarders have to keep up to compete in shipping cargo. As freight forwarders we plan ahead to prevent the negative consequences generated by freight forwarding challenges.
Getting to know the truths on how international risks lead to logistics problems and using that knowledge to stay ahead in the modern and future uncertainties.