The Future of Freight

The International Transport Forum Outlook 2015 estimates that trade between African countries will increase by 715 percent between now and 2050. International freight transport volumes are also expected to grow by 200 percent over the same period. This is not altogether surprising as volumes of trade through port terminals have to grow to sustain economic growth, jobs, and food security across Africa.

As customers enter new markets, especially in emerging economies, they are demanding much more than traditional transportation and warehousing services from their freight forwarding and contract logistics providers.

The ability to offer new, value-added services such as warranty processing, returns management and light manufacturing is now a differentiator, as is providing services such as customs and insurance brokerage, and trade and transportation management.

Challenges
Customer Needs: Another key to growth and profitability will be the ability to analyze customers’ needs and then respond quickly with advanced logistics solutions. That will require better IT tools to improve internal process efficiency and to generate analyses that result in a deeper understanding of customers’ industries and business processes.

Data: A supply chain can generate huge amounts of data as orders and shipments pass along it. At each stage, data is entered, validated, and often combined or merged with similar elements, resulting in very large data sets. The challenge is to understand the implications of the data as this will enable Freight Forwarders to improve their forecasts and consequently their negotiating position with carriers.

Technology requirements: The importance of technology to freight forwarders cannot be overstated.
Technology solutions will need to be quick and easy to implement, providing much higher levels of end-to-end visibility that will allow companies to compete effectively against others. Freight Forwarders who resist new technology adoption and continue to work with legacy systems may fall behind the competition.

The future of the traditional freight forwarding model is indeed at risk thanks to changing demand and enhanced technology. To survive, forwarders will need to plan, adapt and evolve or become obsolete. However, this does not mean there isn’t ample opportunity for companies willing to adapt and evolve.

If you are in need of skilled Freight Forwarding staff to assist your company to grow in this volatile market, we can assist. Communicate Recruitment is a specialist Freight recruitment agency with experienced consultants that understand the industry and are able to find you the right fit for your company. Contact us today for all your Freight staffing needs.