The year 2019 brings vast 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 were held to decide what changes could be made to the freight forwarding industry to make it reliable and self-sufficient. Thus, there were some outcomes out of which few of them are entitled below.
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 paving a big hurdle in transporting raw materials from one place to another on long-distance routes. USA imports heavily and the traffic has doubled over a decade thus proving a vital chance for truckers to arise or 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 software implementation of the freight forwarding business hasn’t quite reached every small and mid-tire logistical business. Due to various reasons of money or lack of activity, its hard of their customers to keep track of shipment and even for them to know when and where their shipment might arrive. Yes, there are reliable software but do no good in ensuring that the customer has stayed on 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.
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 norms of engaging payment from the customer to 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, that cryptocurrency has also become the next major talking points when it comes to payment options.
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. One, being the cost to profit margin. The costs keep piling up which small/mid-tier companies cannot afford. Without profits, there's no point in running a business. And the second option is that the lack of customers can put a “full stop” on future endeavours. Hence companies can be saved by such mergers and help in the overall sustainable in the industry.
Therefore, 2019 is going to be huge. Several drastic and off-guard changes might lead to the import/export business to cripple from within. It’s a better reassurance to keep in mind that such modifications need to be tracked and played along with rather than resisting as it might cost you as well as your company a lot of damage in terms of profits and reputation in the business.