What are the Latest Transformations Shaping Up the Freight Forwarding Industry?

Cargo isn’t the only changing factor in the shipping industry. But, freight forwarding Australia is also transforming with time. Shifting trade agreements, consolidation of some shipping lines, changes in energy costs, the growing desire for sustainable solutions, digitization, and terrorism risks are significant drivers of the change.

Although a company cannot regulate all of these factors, good planning and collaboration with an experienced freight forwarder could help mitigate supply chain risk and maintain corporate profitability.

  1. Focus on Introducing Green Initiatives

The growing need for corporations to show accountability and sustainability in their supply chains is being driven by environmental concerns, particularly around carbon emissions and the risks of climate change. With several corporations and notably big stock market heavyweights voluntarily reporting, the onus is now on everyone else to follow suit.

Maersk, the world's biggest shipping line, recently announced that it would disclose Carbon dioxide emissions statistics for its transport ship, and other shippers may soon follow.

This means that firms may need to analyze their international trade carriers and improve routes and ships to reduce the carbon footprint of their supply chains. Experienced providers for freight forwarding in Australia are ahead in the game in this regard and can already offer guidance on environmentally friendly transportation options.

  1. Potential Trade Routes Are Currently Evolving

With international trade contacts constantly shifting due to new agreements opening up new markets and new sanctions closing down others, trade routes move. Keeping up with these advances is difficult enough, but figuring out how they'll convert into fine aspects like shipping, space availability, and schedules might take a lot of time and effort. In 2020, the conditions were bleak as many shipping companies were forced to run blank sailings. But, as lockdown conditions were eased, there was an impressive surge in container demands. Australian meat exporters even reported a 10-day delay due to a shortage of containers in February 2021. 

Amid these conditions, seeking support from a freight forwarder with a worldwide presence is critical to navigating the maze. You may also ensure that an unanticipated shift does not hamper your plans due to a new trade pact, free trade agreement, or limitation in a key import or export market.

  1. The Focus on Security and Supply Chain Management

The events that followed September 11th, 2001, are a big example of how quickly things can change. Following that, governments of many countries, including Australia, asked transporters, shipping lines, and freight forwarders to adhere to additional security measures in response to fears of terrorist strikes. 

Australia also introduced IFAM or the International Freight Assistance Mechanism to help the industry regroup its supply chains and favor imports of critical goods.

It generated some uncertainty initially, and stakeholders had to work together for several months before the new normal was established. As terrorist incidents continue to make headlines worldwide, more countries are getting weary and implementing additional security measures.

If your goods do not meet a destination’s new and specialized regulations, this might create a considerable interruption to your organization. Keeping a finger on the pulse of regulatory compliance is core business for freight forwarders, placing them in the ideal place to ensure your goods pass through the checkpoints.

Additionally, beyond security in the international sense, there have also been developments in security and safe transport practices for goods. This includes, for example, the development of state-of-the-art storage for hazardous, combustible, and corrosive substances, including these Flammable Storage Cabinets at Storemasta, among other safe solutions which can be utilised during transport.

  1. The Future of Supply Chains Is Digital

The shipping industry, like every other industry, is turning digital. Gone are the days when freight was tracked around the world by reams of actual papers. The majority of paperwork must now be digitized, and data must be transmitted online.

Although some elements of your supply chain always use paper, this is quite likely to shift, and very soon. It's reasonable to assume that your freight forwarding partner will be able to handle digitized data flows all through the supply chain and, as a result, will be able to assist you in maximizing the benefits of digital transformation.

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