Now that we are well into the first quarter of 2020, it is time to take a look at global trends in freight forwarding. From geopolitical uncertainties creating conflicts between countries to the coronavirus pandemic, there have been disruptions that have caused serious challenges for the logistics industry. From changing regulations to moving towards a digital frontier with Freight Forwarding Software, one thing is for certain – freight forwarding never has a dull moment.
Here are a few things that freight forwarding can be looking forward to:
- International Maritime Organization 2020: The latest regulations for freight forwarding came into effect from 1 January 2020 along with the IMO requirements that were underway. The primary requirement of reduction of sulphur oxide emissions from 3.5% to 0.5% is a drastic change that is likely to continue affecting shipping costs as well as capacity availability this year.
- Expansion of e-Commerce: With the growth of e-commerce, there has been a growing demand for freight management software as well and high-tech products that have been flooding the market. This has also led to an increase in air freight being chosen as the go-to mode for transportation all throughout the year.S
- Further Reach for Sourcing Locations: Since the trade war uncertainties are relatively coming to a conclusion, with the advent of Coronavirus the world is looking at broadening sourcing locations beyond China. South-east Asia has already been seeing clear benefits of this expansion and will end up seeing more manufacturing growth in 2020. Since sourcing strategies are going to see a switch, this might also bring with it certain challenges such as capacity availability, infrastructure support as well as geopolitical stability, which means that there is going to be continued demand for logistics software which can aid with real-time analytics.
- Technological Evolution: There is a significant investment that is being made in technology as well as transportation platforms, with well-respected and established providers making investments now that will end up reshaping the world of freight forwarding. This means that all these investments will end up creating value across the supply change and open up new options for shippers and carriers alike – hence, businesses now need to spend more time looking at freight management software that best fits their organization.
The right technology can offer your business tailored, market-leading solutions that can help in driving supply chain outcomes. Freight forwarding in 2020 is going to be about strategizing, continuous improvement efforts and also taking a look at technology levels and choices that can help you reach your short-term as well as the long-term goals.
To know more about how freight forwarding software can benefit your business you can reach out to ShipThis for a free demo and we will be happy to help you understand the benefits of leveraging technology better.