The freight rates and oil prices have become soring high in the recent days and there are forecasts of a further increase in the prices in the fuel and which will obviously increase the freight rates even further. In this scenario, we can expect the logistics market to undergo structural changes to cope-up with the situation. Also, the recent scenario is bound to make changes in the complete online business sector which also means that the forwarders need to be attuned.
- These situations in the market will be enabling the Freight Forwarding Companies to use their think tank more regarding working in
- The initial works such as forming alternative delivery chains, thinking about different innovative but cost-effective methods of delivery and freights will be difficult and a lot of statistical analysis needs to be done for finding out the most effective methods of shipping. Previously these kinds of interactions were made manually but decreasing the manpower is needed and more automation is needed to get the maximum benefit for the companies.
- The market has changed a lot in the previous years and the bigger shippers and forwarders have adapted well with the changes by moving majority of their shipments to an electronic exchange of information so that the manpower gets minimized but the problem sits on the mid-market and nearly all of the small market operators in this huge chain of freight forwarders as these operators lack innovative IT systems and modern technologies and hence their business comes at a halt.
- Another important factor is using a middleman. Almost all the freight forwarding companies use a middleman for the shipping purposes. For example in case of ShippingFrom China To Amazon FBA a freight forwarding company will definitely hire a shipping company and that will cost them more money and hence the benefit of the freight forwarding company will be less.
- Now there are numerous shippers in the business hence choosing the right shipper who provides a legit shipping rate, services such as Amazon FreightForwarder and takes proper care of the consignment as well and hence the list of hectic tasks and factors for consideration keeps on increasing for the mid-market and small market operators as the big shippers already have alternative supply chain options ready due to their reputation in the market.
- It is a known fact that no VP of a supply chain doesn’t want to get a call from the company’s CEO regarding the orders not getting delivered in time or complains regarding the damaged products and so on. Hence it is the VP’s duty to ensure all the matter of delivery in a proper way and hence the major factor is to apply the thinktank here regarding the proper shipping and delivery of the products in this changing market so that the business stays in a great shape.
The future of freight forwarding is quite bright and this can be known by the options such as Packair. They are known for their experience and skills and hence are known as one of the reliable options in town.