Covid 19 has had a major impact on the global freight forwarding industry. Changes in customer behaviour, government regulations and supplier bankruptcies have all contributed to a challenging operating environment for freight forwarding Brisbane companies. In this blog post, we will look at some of the key changes that have occurred since the pandemic began.
The global freight forwarding industry has been affected by Covid 19 in a number of ways.
The global freight forwarding industry has been hit hard by the Covid 19 pandemic. In an industry where 91% of global transport occurs by sea, skyrocketing costs and extremely limited capacity have had a serious impact. Companies are now looking to alternative modes of transportation such as rail and road transportation which have historically been less efficient but come with added advantages such as increased flexibility and faster delivery times. Businesses are asked to remain agile and flexible in order to quickly adjust operations and respond to the economic challenges posed by the pandemic. To stay competitive, companies must also embrace digital innovation and implement innovative processes that offer customers end-to-end visibility of their goods. Ultimately, Covid 19 has revolutionized the industry by forcing everyone to rethink the way goods are transported, shipped, and tracked globally.
First, the pandemic has led to a decrease in demand for many goods and products that are typically shipped via freight forwarders.
The COVID-19 pandemic has had far-reaching effects, impacting the movement and storage of goods across the globe. One of the industries that have profoundly been affected by this crisis is freight forwarding. For those who are not aware, freight forwarding Brisbane companies manage shipments on behalf of other companies who transport their goods via air, sea, or road. Previously an in-demand service, many companies have seen a decrease in demand due to the lockdown and halt to international trade resulting from this pandemic. Another consequence of the pandemic has also been a slowing rate of supply because of fewer available transportation services and longer turnaround times for imports and exports. Companies have had to take extra measures locally to reduce costs and time requirements usually associated with importing goods from overseas markets, greatly minimizing their reliance on freelance forwarders in the process.
This decrease in demand has put pressure on freight rates, as carriers attempt to fill their vessels with lower-paying cargo.
The increasing lack of freight demand has thrust more pressure onto freight transport businesses than ever before. Most of the cargo they have been receiving are lower-paying, such as recyclable materials and less time-sensitive shipments, making them and other related services unable to reap their original rewards. The resulting economy has put many carriers in a bind, and many transportation businesses must resort to new tactics if they wish to keep up with their competitors and fill their vessels for successful trips. Furthermore, this situation may force economies to shift dramatically, which will also likely push down profits until the market can rebound from the current state.
Finally, the pandemic has led to increased scrutiny of the freight forwarding industry, as governments and consumers alike have become more concerned about the safety of shipments during the Covid 19 pandemic.
With the Covid 19 pandemic causing immense disruption across many facets of employment, freight forwarding Brisbane companies and related industries have come under increased scrutiny in terms of safety protocols. Recent studies show that consumers are more aware than ever before when it comes to the conditions their goods are transported under and governments have had to implement stricter procedures for ensuring the safe handling and transportation of packages. With the global nature of many freight forwarders, keeping tabs on international standards for shipment safety has become even more important, as this is how people can ensure the utmost protection for items sent from order fulfilment centres to customers’ doorsteps.
When you are looking for a freight forwarding Brisbane company that can help you navigate these challenges, look no further than One Global Logistics. We are proud to offer our clients a full range of shipping services, backed by our years of experience in the industry. Contact us today to learn more about how we can help you ship your goods safely and efficiently during these challenging times.
