Top global freight forwarders of the world are starting to adjust to the changes in the industry. Here are 3 lessons to learn from these global logistics trends.
The Rail, Air and Sea Freight Forwarding industry has grown over the past five years. Industry operators are middlemen in supply chains, connecting customers with freight transport providers and consolidating loads to achieve lower rates. Supply chains have become more sophisticated over the period, as clients have been matching their inventory with real-time demand.
- More frequent but smaller deliveries have allowed industry operators to continue providing load consolidation services in the supply chains of major markets.
- Continued growth in consumer expenditure and international trade are expected to increase industry revenue by an annualised 2.6% over the five years through 2016-17, to reach $9.1 billion.
Source: IBISWorld; Logistics Management
In this series, we try to equip you with the basic knowledge necessary to successfully manage your freight and supply chain. Being able to understand what the key players are doing and how to respond to global freight forwarding trends is one of them.
“The world’s major forwarders are way ahead of the curve on compliance and technology,” says consulting firm Armstrong and Associates. “That’s a big reason why they are so successful,” adding that this trend will only gain more momentum.
We at Whale Logistics Australia know that technology can transform processes and customer experience as it is a key pillar in our operations. Key issues such as being able to anticipate logistics plans and have information transparency across multiple silos is slowly becoming the norm for global freight forwarders.
For these three leading players in the rankings, “anticipatory logistics” has become a new part of their strategic plans. Forwarders, irrespective of size, will have to prepare for these changes or be left behind.
Global freight forwarders of all sizes are increasingly challenged to align compliance with logistics operations. Shippers themselves are also concerned with the heightened security requirements of different countries. And still, the freight transportation value chain is still slow to see changes in reducing inefficiencies in this area.
The key to reducing these inefficiencies is having the expertise there to help your organisation resolve road blocks and flow through the value chain quickly and efficiently. The years of experience of our experts allow Whale Logistics to be customer-focused and tailored to every business' needs. To succeed in the global freight forwarding market, compliance is crucial as it can cost clients valuable time and money when this is not delivered.
At the end of the day, rates are one of the most important aspects of any global freight forwarding market. And while sea freight is on the rise and air freight is seeing a decline due to overcapacity, rising fuel prices, and other operational costs; erratic rates for ocean freight still remain a top concern for many shippers.
“Many assume that a shift to ocean shipping is strictly a decision based on financial savings, but this is not always the case,” says Brandon Fried, executive director of the Washington, D.C.-based Airforwarders Association. “Changing from air to ocean can also be a function of demand and inventory space constraints where customers depend on ships as virtual warehouses constantly feeding distribution centers on arrival.”
Again, being aware of these changes ahead of time, and planning for such rates spikes is crucial for global shippers. In this case, time is also money, so visibility and communication with your freight forwarder is important so you do not waste unnecessary money to resolve problems that were not foreseen.
Whale Logistics leads the way
While Whale is still a young company, we are a leader in the space of automation, technology-driven freight forwarding and agile supply chain management. We believe in giving customers power to change their supply chain by giving them the power to oversee their operations from A to Z. Our Vision Technologies (mainly Vision Supply Chain Manager) does just this - although this software has not yet been officially released, we encourage you to contact one of our Customer Success Manager and try it out today.
If you enjoyed this blog post (part of the Freight Forwarding Basics series), more can be found here. Read our other blog posts to see what we're up to in the company as well as updates on freight rates, trends, and tips. You can also subscribe to our newsletter to get these posts delivered to your mailbox every week.
Whale Logistics are Australia’s leading Freight Forwarder and Logistics company located in Sydney and Melbourne. We deliver digital-focused freight forwarding services such as Australian customs parcel tracking, parcel delivery box, and comprehensive ocean, air and road freight solutions. For cost competitive and innovative freight forwarding solutions, or if you want to get in touch with one of our Customer Success Managers, drop us a line and we will be in touch shortly.