Could This Be The Future Of The Freight Forwarding Industry?
The Future of The Freight Forwarding Industry
Shipping and transportation is one of the biggest parts of international business. In 2017, performance in freight forwarding was at its best in almost a decade. This saw an increase in business interests, investments and consumer confidence. Last year, forwarders saw an increase in the air, ocean and road freight as the supplier conditions led to a strong inventory demand. We try and forecast the future of the freight forwarding industry for 2018.
Global airfreight will continue grow through 2018 in both volumes of cargo and profits as e-commerce demand continues at a steady rate from 2017 volumes to grow at twice the pace of the expansion of world trade. IATA (The International Air Transport Association) reports that the need for shipping via air is at its highest level in more than a decade. With new capacity arriving to satisfy cargo demand as more people are using air as a method of shipping than ever before. Airlines are continuing to see profitability levels rise.
Technology is playing an increasing role in both the logistics and e-commerce industries. This makes shipping companies more dependent on freight forwarders to supply up-to-date and easy to use booking and tracking software. Data provided to customers will play more of a role than ever, as companies wish to get goods delivered faster and more efficiently to their online customers. Data security will also be a focus, with more shippers asking forwarders about how they will protect shipment data during and after the transaction.
Freight Forwarders and E-commerce
The role of forwarders within the e-commerce sector is both promising and uncertain, having smaller vans to deliver small packages to residential addresses may proven challenging to some. However, forwarders will always have a huge part in providing more larger shipments from factories to both distribution centers and business addresses.
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