The year 2019 is bringing profound changes to the logistical world, primarily targeting the way things work and how efficient it should be to cut down costs and maximize profits. Several summits and conferences have been held to decide what changes could be made to the freight forwarding industry to make it reliable and self-sufficient. There were several outcomes, a few of which have been enlisted below.
What's New in Freight Forwarding in 2019?
1. Expansion in autonomous driving
Several developed countries, such as the USA, have shown signs of radically decreasing labor forces to work in freight forwarding companies. Truckers, in particular, have declined steeply, thus bringing up a massive problem in transporting raw materials from one place to another via long-distance routes. USA imports heavily and the traffic has doubled over a decade, thus providing a vital chance for truckers to arise, or for the emergence of autonomous driving vehicles to take over. Such vehicles might be implemented in short-distance travel but might prove to be a challenge over long distances.
2. Application of big data and blockchain
The implementation in the freight forwarding businesses hasn’t quite reached every small and mid-tire logistical business. Due to various reasons like lack of money or lack of activity, it's hard for their customers to keep track of shipments and even for them to know the whereabouts of their cargo. Even though there is a reliable software, they are not useful in ensuring that the customer has stayed in the loop. Therefore, with the implementation of big data and blockchain, the chances for integration between the customer and the company in terms of data might be a coalition to form a stable logistical industry.
3. Adaptation of newer forms of payments
There is no doubt that the freight forwarding business has developed vastly over the last decade, and so has the payment options. Cash, debit card, or credit cards were the primary approach taken by the customer to pay the company. But in 2019, the usage of digital options such as banking applications or third-party applications, to have a bank-to-bank transfer condition is on the rise. Needless to say, cryptocurrency has also been gaining a lot of attention.
- 4. The alliance between freight forwarders
It might seem to be the best option for smaller or mid-tire freight forwarders to tie up with the big names in the industry. There are two reasons for this; the first one being the cost to profit margin. The prices keep piling up which the small or mid-tier companies cannot afford. Without profits, there's no point in running a business. And the second reason is that the customers cannot put a “full stop” on future endeavors. Hence, companies can be saved by such mergers, and it can also help in their overall sustainability in the industry.
Thus, it is clear that 2019 is going to be huge. Several drastic and off-guard changes might lead to the import/export business crippling from within. It is essential to keep in mind that such modifications need to be tracked and played along with, and not resisted, as it might cost you as well as your company a lot of damage in terms of profits and reputation.