Despite technological advances made over the past decade, transporting a shipment from one point to another remains persistently difficult. And as shippers press on with their demand for speed, transparency, and efficiency, the freight forwarding industry strives hard to find a quick enough and appropriate response.

The solution to this equation lies right before our eyes: embrace technology.

Over the past decade, we’ve seen an increasing number of freight forwarders finally adopting technology. However, the industry has, for the most part, employed it to improve its internal processes. That’s to say, for the sake of the freight forwarding company.

Shipping liners, on the other hand, have been more accepting of technology. In fact, most steamship lines have been able to save time and money by making their customers submit documents online. But when developing these set ups, none has really considered what the more convenient option for their clients would be.

But here’s the difference: Carriers have the advantage because they operate in a market with very little competition. Additionally, clients tend to be more complying as they rely on the carriers a lot more than the other way around.

Freight forwarders, on the other hand, face the challenge of having to do things that help the clients rather than adopt a technology that could ease their workflow. The trick for freight forwarders is building something online that their clients will actually use consistently. That said, having clients make the switch to an online platform is a vastly different task from that of carriers.

Why has the freight forwarding industry been so slow in accepting technology?

The reason behind the apparent reluctance to adopt technology is really an issue of cost versus gain. Certain freight forwarders see online features as perks for their clients rather than actually game changers in the industry. Other forwarders deem it too costly to develop online tools for their clients taking into consideration the relatively low return in potential increased business. Until now, it seems that the tide has been heading this way.

Many freight forwarding companies are still very traditional and still have stacks of papers and files lying around. But while it seems messy, there’s a set system within with all sorts of agreements for how these paperwork are actually processed and how exactly to manage the exceptions. That is one benefit of sticking to convention. When exceptions arise, it’s always easier to manage it without automation because there’s only so much programming can do when it comes to flexibility. And this is a huge challenge for technology companies to overcome. There are immense variations on how a same job is executed by automation and a human from carrier to carrier, port to port, and rail to rail.

Some have argued that the freight forwarder business remains very much so a ‘people business’ and this is certainly true. There’s a reluctance to replace a personal touch that’s crucial for shippers. For many of them, the personal service is important. It’s vital to know that there’s a human presence around they can trust and rely on to take care of their shipment and to ensure things move as smoothly as possible.

Dealing with shipping lines is often a daunting task. This is especially so when something goes wrong and clients want to know they have someone to help fight these battles for them. A good forwarder can also warn clients about potential issues, risk of costs, etc. In this industry, things rarely go exactly as planned. That said, the ability to adapt and come up with solutions is a vital value — one that perhaps technology will find difficult to resolve.

“Until technology can offer the same level of customer service and relationships, freight forwarders will not bat an eye.”

Risks involved

Adopting technology is easier said than done. With its constant evolution, implementing it isn’t a one-step process. In order for freight forwarders to fully take advantage of all that technology can offer, we should begin by looking for opportunities to utilize it and this should begin as soon as possible.

If there’s ever only just one thing to keep in mind with regards to technology, it has got to be the risk of cyber attacks. Who can forget the Petya attack that crippled Maersk less than two months ago? Attacks of any kind can be devastating to anyone. Perhaps not to the extent that Maersk suffered but it is definitely a huge risk. In theory, freight forwarders could revert to doing large parts of their work via phone and fax since their role mainly revolves around communication. But if it ever gets to it, this option remains a rather limited one since it’s getting increasingly difficult to reach a carrier by phone.

iContainers: Blending technology and freight forwarding the right way

The lack of technology in the freight forwarding industry is exactly what iContainers is trying to change. Using technology, we convert the complex world of shipping into a simple and smooth experience for our clients and continue to bring the shipping service of tomorrow.

With the help of technology, we’ll improve on our worldwide coverage to add more services around the world. Already, our advances over the past year have proven to be an immense help to our existing clients.But that’s not enough. We’re looking to introduce better Track & Trace functions, better documentation flows, improved rate management and options catered to our clients’ needs, and more detailed dashboards.

How will technology waves churn the freight forwarding industry over the next decade?

Compared to the travel industry, freight forwarding is way behind. For decades now, it has operated in a certain way that has become somewhat of a custom and convention. They have their own specific ways and methods of dealing with pitfalls and day to day challenges that come with the nature of the industry.

Having more transparency in the industry would undoubtedly make it easier to actually manage shipments. Certain aspects I would particularly love to see is further integration to allow for simpler inventory management and space allocation so clients can better plan their loads.

US shippers, especially those in rural parts, are often unable to rely on a loading date given, the availability of equipment, and an open return window at the rail yard that matches with the specified load date. That results in not only very early planning, but also the need to remain flexible and diligent to ensure cargo sailing on time without accruing extra charges.

Hopefully over time, the barrier between technology and freight forwarding will dissipate and a safe and beneficial fusion can emerge.

“The forwarder’s skill is its ability to blend technology seamlessly into an already high level of personal service.”

This post was originally published on Medium.