A Look At the Top 5 Challenges Facing the Freight Forwarding Industry Today

Freight forwarders are as nervous about the future as any other type of company these days – and for good reason. It’s hard to think of another industry facing more uncertainty with many of the macro-trends happening in the world right now. These challenges include everything from the impact of technology and the state of the global economy, to how newly elected U.S. President Trump is promising to shake up global trade.

Do Freight Forwarders Lag When It Comes to Technology Adoption?

The logistics industry gets little credit when it comes to the adoption of technology. It seems like there is a new technology startup appearing every day promising to “disrupt” the $3 trillion shipping industry – while at the same time criticizing shippers and logistics companies everywhere as luddites.

3 Things Top Freight Forwarders Do Better

The line between what one kind of logistics company does and any other is more blurred than ever. Take the term 3PL – this is used by freight forwarders, carriers, and even warehouses as a way to describe themselves. None are wrong be each largely do very different things. This shows that logistics companies have expanded their capabilities to provide a whole range of services to clients when in the past they were narrowly focused on just one.

Logistics Technology Is About More Than Process Automation

The common selling points for technology are usually about eliminating manual tasks and cutting down on paperwork. Obviously anything a forwarder can do to eliminate unnecessary phone calls, as one example, can be big time savers. These are all important benefits, especially in a process as paperwork intensive as that of international shipping – but these type of tactical advantages are not the whole story.