As freight companies look to increase profitability by building economies of scale, we are also likely to see more mergers and amalgamations between international freight companies.
As labour costs in China spiral, some question marks hang over the Chinese import market and it becomes more expensive as a producer. Asda, for instance, has recently said that they could move some of their sourcing to Vietnam as China’s import benefits are being eroded by increasing labour and supplier costs, and more supermarkets are expected to follow suit. In spite of this, however, China’s imports and trade with Asia will continue to be the rising star of the international freight industry and Asian freight forwarding revenues will help freight companies invest in new consumer services. Do you want to learn more? Visit Freight Ratez, Anthem.
As freight forwarders add more value-added services to distinguish themselves from shipping companies down the road, increased rivalry between freight forwarding companies is likely to lead to new product growth. A growing emphasis on enhancing customer service is also likely to be present. In addition, the freight forwarding sector will see more IT use to simplify processes and decrease costs. For clients, this would be good news as it suggests more openness in the international freight industry. Increased use of software can enhance connexions between shipping firms, buyers and the final recipients, offering a better service all around. Integrated IT can also be used in international freight to improve customer preference – for instance, between ‘green’ freight forwarding options as an alternative to the fastest freight transport options. Accenture’s latest study on the freight services industry notes that there are two aspects that differentiate the best performing freight companies from other shipping companies: mastering structured processes and using automated IT. Companies can minimise freight transport costs, reduce errors and increase the speed of the industry by applying automated processes.