THANK YOU FOR SUBSCRIBING
The logistics business has relied on a core, relatively consistent set of processes and technologies for decades to manage supply chains, people, and communications.
FREMONT, CA: 2020 was a turbulent year for the logistics business, with repercussions felt across numerous sectors. However, technical advancements have continued, with digital technology now assisting in the delivery of COVID vaccines. This is the setting in which technology is reshaping the future of freight forwarders and the more significant connections of global supply chains.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
Technology is reshaping the freight forwarding industry's future.
While estimating the impact of COVID-19 on logistics worldwide is not straightforward, data already provides some guidance. During the first quarter of 2020, the International Finance Corporation reported the following:
Ocean freight: Total container volumes handled at Chinese ports fell by 10 percent in the first months of 2020, affecting significant exporters such as Brazil, China, India, and Mexico and importers such as the European Union.
Land freight: Unlike ocean and air transport, land transit has generally remained partially available globally due to the continued operation of roads, unless in regions subject to severe lockdowns. Trucking capacity is constrained due to increased demand for their services—particularly food and medical supply transportation—during the lockdown, combined with lower staff availability (due to COVID-19-related limitations), resulting in increased rates.
Check Out This : Cannabis Business Insights
Air freight: Air freight volumes decreased by 19 percent in March 2020, owing to a dramatic decline in passenger flights (which carry freight as belly cargo) and a decline in manufacturing in China. Capacity reductions are more than net demand reductions, which supports higher air freight rates.
Business contacts and technology provide leeway in this situation. It takes a crisis to recognize how essential years spent cultivating relationships are, demonstrating the importance of adaptability, culture, and technology. As freight forwarders accept emerging technology cautiously, the two variables combine to shape the industry's future.
Fleet management systems: In recent years, fleet management systems (FMS) have been an asset, but they are now a prime example of how technology is reshaping the future of freight forwarders. FMS software optimizes fleet efficiency through the use of GPS, telematics, and other information technologies. FMSs track critical, actionable metrics and assist in critical fleet management activities through their vital characteristics. FMS software to assist logistic sectors in managing fleet has become abundant and continues to grow to suit industry demands.
Blockchain: Automation entails a rise in cybersecurity risk. In this sense, blockchain technology is transforming the freight forwarding industry's future by redefining security.
Blockchain technology opens up new security frontiers due to its inherent resistance to data alteration and selective access mechanisms. Freight forwarders can use it to minimize prior safety expenses while enhancing process efficiency.
Integration with existing procedures continues to develop, providing shippers along the supply chain with additional transaction verification choices. Access to information will be critical to this system, as all stakeholders will have access to consolidated ledgers to determine the legitimacy of data and study them.
More in News