While a CEO cannot directly influence all of these factors, proper planning and collaboration with a seasoned freight forwarder can assist in reducing supply chain risks and safeguarding company profitability. However, that doesn’t mean hiring the best freight forwarder is the only way to succeed in the import/export world.
The entire freight forwarding sector is experiencing change. Changes in trade alliances, the consolidation of certain shipping lines, variations in oil prices, the rising desire for sustainable solutions, digitalization, and terrorist threats are some of the factors behind the changes. In light of this, here are a few trends shaping the freight forwarding industry today!
Supply Chains are Becoming Digital
The shipping industry is going digital, much like every other industry. The era of actual papers following freight forwarding companies around the globe is long gone. Most documentation must now be digitalized, and data must be exchanged online.
Even if certain supply chain components continue to rely on paper documents, this is likely to change quickly. So, it is evident that your freight forwarding partner will be prepared to manage digital and electronic information flows across the supply chain and be able to assist you in maximizing the benefits of digital transformation.
Security is Taking Center Stage
September 11, 2001’s early aftermath is an excellent example of how rapidly things can change. After that, the US government asked shippers, shipping lines, and freight forwarding companies to follow stricter security measures in response to worries about other terrorist strikes.
At first, this led to confusion and required several months of cooperative work on the part of all parties before the new normal was established. As terrorist acts continue to dominate the news, more nations are growing wary and implementing additional security measures. So, if your cargo does not meet a destination’s new and specialized regulations, this might seriously damage your operation.
Freight forwarders are in the ideal position to ensure your products can pass through gatekeepers since it is a core business component for them to keep their finger on the compliance pulse.
Trade Routes are Evolving
Trade routes are constantly changing due to the shifting nature of international trade relations, which include new treaties opening up new markets and new sanctions closing off others. Therefore, keeping up with these changes is difficult enough, but figuring out how they will affect specifics like shipping, available space, and timetables might take tremendous amounts of time and effort.
Therefore, getting guidance from a freight forwarding company with a robust worldwide network is essential to navigating this maze. It will also ensure that your plans are not derailed by an unforeseen shift caused by a new trade pact, free trade agreement, or an import/export market limitation.
According to all the trends in this article, the freight forwarding industry is undergoing a next-generation freight movement. Of course, these will help you improve your business’s operational efficiency and client relations. However, business owners should remain aware of the industry’s direction and how their clients and competitors will react. Hence, they should take swift action to reduce uncertainty in the foreseeable future.