By Chris Gant • 24 May, 2019

With the economy facing difficulties, the global freight market has been struggling with freight-ton-kilometers declining by as much as two percent. Despite some declines, there have also been increases for some companies in the market. In the ever-evolving freight industry, it is clear companies must rise to the challenges and implement innovative strategies to compete on a global scale. Freight Shipping Is the Foundation of a Solid Global Economy Although the cries of purchasing local still resound, global shipping continues to be at the forefront of economic progress all around the world. Faster shipping demands are more insistent than ever before, leading companies to seek superior and ever-evolving options for improvement. Despite struggles in the current market, UK freight forwarders remain instrumental in international logistics. In the UK, almost all the businesses that trade internationally fully rely on freight forwarding to act as a middle man between the trade companies and the carriers. As the world's population continues to grow, cost-effective transport of goods becomes increasingly essential. Shipping is the backbone of the economy in the UK and on a global level. Most of the failures in the shipping industry come from avoidable mistakes companies could overcome with access to the right data. Freight Forwarding Must Integrate New Technology While some believe freight forwarding has become somewhat antiquated, the concern lies more in the lack of technology. Freight companies that are remaining strong in this tough economy are those who have embraced technology and are striving to improve efficiency in operation. Many believe it is time for freight shipping to evolve to meet the demands of consumers worldwide. The industry has seen very few changes since the 1950s and companies still rely on outdated means of record-keeping, including paper trails and faxes. Although many other industries have been using advanced technology over the last ten to twenty years, the shipping industry continues to remain bogged in the past. It has been reported a single air shipment can produce as many as thirty paper documents. These documents create about 7,800 tons of paper a year. The United Nations has reported the time it takes to ship goods could be reduced by as much as 40% simply by forgoing paper records and going digital. Digitization Is the Answer The freight forwarding industry is taking a hard hit due to economic changes and increased demands. There is now more competition than ever before and customer demand is rising. Companies that cannot find sound methods of addressing these issues will likely continue to see decreasing margins. Eliminating unnecessary inefficiencies will be the key to success for freight forwarding companies. According to the Global Freight Forwarding 2017 Report, 86% of logistics experts agree digitization will help freight forwarding companies remain relevant and strong in the global shipping market. Digital solutions are necessary for today's economy. Many of the top forwarders are now selling their services online. With the many different elements involved in shipping cargo, freight forwarders must do all they can to reduce costs and improve customer experience. Many believe this can only be accomplished with cloud-based platforms. With digital tools available, freight forwarders are proactive in avoiding problems, instead of being reactive because of them. With a digital platform, companies benefit from digitally-based analytics which helps in making key decisions that benefit the company and the customer. Outlook for Freight Forwarding Although the global freight forwarding market is experiencing struggles, there is hope on the horizon. It is expected slight increases will begin occurring around the time of the Brexit deadline on October 31. Increases are also expected around that time with the normal seasonal demands. Improvements in chain efficiency, reduced rates, and reduced costs will help to stimulate growth. The companies that rise to the challenge and can effectively manage risk reduction and increased profitability will remain successful. The business of freight forwarding is certainly evolving and outdated methods are being replaced with advanced technology that is changing the scope of services manufacturers and freight movers provide. The more the shipping process becomes automated, the more mistakes reduce. By utilizing the data acquired from the shipping process, manufacturers can better serve their customers and diminish wastefulness that has left the industry stagnant for so many years. For any company to be able to compete at the global level, overhauls in shipping become chief. Conclusion There have been noticeable struggles in the global freight market. With the UK economy still struggling, legacy brokers are starting to fade away. There is hope for legacy brokers if they transform their shipping platform into digital. Incumbents are also poised to go digital and those who are already pursuing digital processes are finding they are better able to compete on the global scale. While some changes are taking place, companies cannot expect to go half-way. Full digitization is critical for success and this is naturally followed by automated integration in back-end operations.