The Future of Freight Forwarding: Trends to Watch

The global world is currently going through the phase of ultra-globalisation where each and everything is intrinsically interconnected, right from the core. Economies have never been this engaged before the way they are today and are heading the way of economic prosperity hand-in-hand. What has made this collaboration possible in the present times? The answer is obvious- booming international trade.

The freight forwarding industry significantly facilitates this global trade via well-established supply chain networks and channels. They ease out the process of transporting goods across international borders for exporters and importers, handling customs and documentation on behalf of the consignor. As a middleman, they make the freight forwarding process convenient and efficient for exporters so that they can focus on the other aspects of the business.

Freight forwarding companies are the drivers of global trade and economy, so the technological boom, digitisation, and the age of artificial intelligence bring in a lot of new trends for the industry. So let’s delve into the various upcoming trends which are going to revolutionise the freight forwarding industry in the future and the factors which are gonna play a crucial role in this revolution.

Factors Which Are Having A Major Impact On The Freight Forwarding Industry

The freight forwarding industry is being significantly influenced by several key factors. Firstly, the rise in e-commerce has increased the demand for fast and efficient shipping services. Secondly, global trade tensions and changing tariffs can create uncertainty and affect shipping routes and costs. Thirdly, technological advancements like automation, tracking systems, and digital platforms are improving efficiency but also requiring investment.

Additionally, environmental regulations are pushing companies to adopt greener practices, which can be costly. Lastly, the COVID-19 pandemic disrupted supply chains and highlighted the need for more resilient and adaptable logistics strategies.

Primarily talking about technological upgradation, automation has by and large made the entire process of global transportation more convenient and efficient. Technology and automation have impacted the various facets of freight transportation globally. Namely, communication, real-time tracking, inventory management, data analytics, routed optimisation, to name a few! 

The Upcoming Future Trends In The Freight Forwarding Industry to Watch Out

1. Big Data Analytics 

In the future, data will be gold for global businesses. The age of AI and hyper-digitalisation ensures this and therefore even the shipping and logistics industry realises the significance of big data in optimising and making their operations more adaptable for the upcoming trends!

Freight forwarding companies have been utilising the traditional set of data within their systems for better decision-making for a long time now, but that data is often decluttered. Maybe due to the lack of technology, traditional data is difficult to handle, but with new-age technology like data analytics, it is possible now!

Big data in logistics refers to the gathering, analysing, and processing of intricate datasets related to logistics operations. It combines multiple systems, including Enterprise Resource Planning (ERP), RFID tags, sensors, and GPS units. A holistic strategy that improves demand forecasting, transportation, inventory and warehouse management, and other areas is made possible by big data analytics.  

2. Internet of Things(IoT)

For achieving smart management of vehicles, improved driver safety, supply chain visibility, cost savings, optimum resource utilisation, better operational agility and efficiency, and superior customer experience, IoT plays a crucial role in freight transportation.

In the transportation and logistics sector, the Internet of Things is frequently referred to as telematics, which is the core technology underlying fleet management and tracking software

IoT enables businesses to maintain connectivity and a collaborative ecosystem for achieving absolute visibility in end-to-end fleet tracking and management.

3. Penetration of Artificial Intelligence 

We are living in an age of artificial intelligence and there is no field of business left today, where AI has not penetrated. AI’s exceptional ability to analyse the data and make future predictions based on the outcomes is empowering businesses to make smart and visionary decisions.

Be it route optimisation, demand forecasting, fleet management, or inventory handling and management, AI is making every step of the freight forwarding process optimised and efficient.

4. Sustainability 

This trend is gonna be on top of the list as the world readily adapts sustainability and environment-friendly measures. Right from supply chain management to packaging material, freight forwarding companies are going the extra mile to replace the conventional and harmful methods in logistics and shipping. 

With the advent of technology, many alternatives are available now to freight forwarders today like alternative bio-fuels, electric vehicles, biodegradable packaging material, etc, which make freight forwarding more sustainable in the long run. 

5. Electric Vehicles

EVs are the talk of the town and they are readily being preferred for moving freight via roadways. To cut down on greenhouse gas emissions and achieve carbon neutrality, EVs serve as a better alternative. They not only reduce vehicular emissions but also reduce the overall fuel cost burden on freight forwarders.

6. Cybersecurity 

No doubt that with the increasing globalisation, the threat to data security has gone up. Multiple incidences of data breaches have already been reported globally in the past few years and the current digital infrastructure is still susceptible to future data breaches.

While a giant amount of data is flowing through the globally interconnected supply chains, the need to adopt security measures for data security is gradually emerging as the need of the hour for freight forwarding.

Conclusion

The world of freight forwarding is already changing rapidly due to booming eCommerce and fast consumerism, and the increasing globalisation will further bring major and radical changes in the industry with a keen focus on automation and technology.