Freight forwarding is a common activity by businesses and people to transport goods across places. The freight forwarders are the service providers who make things easy for you to safely and conveniently move the goods from one place to another. This is an ever-evolving industry with lots of technicalities and legalities involved in it. Freight forwarding is the backbone of the global supply chain network. According to a report by Grand View Research, “The global freight forwarding market is estimated to grow $1.8 trillion by the year 2027”.
Types of Freight Forwarding Services Growing with Automation
Freight forwarding services are a combination of activities. These services involved the arrangement and coordination of the movement of shipped goods across the globe. The most popular freight forwarding services include:
Ocean freight
Ocean freight is the most popular method of good freight forwarding, covering 90% of the trade volume worldwide. This is a popular method as it is cost-effective and safe for even larger quantities of goods for long distances. According to Statista, the global sea freight forwarding services market size was estimated at 92.8 billion U.S. dollars in 2021. The market size is expected to grow to 145.4 billion U.S. dollars by 2031. Though ocean freight is considered the most popular, it depends upon various factors like weather and port conditions. This dependency makes freight forwarding through the sea time-consuming and a less efficient way of transportation.
Air freight
Air freight is a very popular method for quick transportation of freight. People dealing in valued, high-priced, or perishable goods prefer air freight. It is expensive yet the safest method used by freight forward services providers. Still, air freight forwarding service has some weight and size limitations that need to be considered if you are selecting the air freight forwarding option. People prefer air freight due to its time-effective nature and technology-bound tracking and management systems. According to Statista, the global air freight forwarding market size was estimated at 99.7 billion U.S. dollars in 2021. Also the estimated growth is expected 139.8 billion U.S. dollars by 2031.
Ground freight
Ground freight is the way to transport goods by road on a vehicle, or by train. It is a good option for moving goods within a region or country at an affordable cost. According to Mordor Intelligence, the global rail freight forwarding market size was estimated at 0.2 trillion U.S. dollars in 2020 and is expected to grow at a compound annual growth rate (CAGR) of more than 4% from 2021 to 2026.
Multimodal freight
Some freight forwarding services use multiple methods to complete the process of freight forwarding. A shipment might get to the port by ground freight services, then be shipped by sea to its final destination, and then delivered to the client by a truck. A multimodal freight forwarding service is a complex process but convenient for the sender and service providers themselves. It is an effective way to get the maximum benefit from the available resources.
Additional Services That Freight Forwarders Offer
The growth of the freight forwarding industry is escalating due to trade globalization and the rise of e-commerce activities across the globe. The freight forwarding industry has evolved in terms of technology and services to cater to their clients accordingly. Most companies are now using software for freight forwarders to provide a variety of modern services and solutions to help businesses, such as:
Customs Clearance
Many freight service providers help their clientele get customs clearance from various ports for import and export purposes. Especially in international freight transportation, the governments levy various duties and processes to ensure the legal transportation of goods in all aspects like the nature of goods, their size and quality, etc. An efficient freight forwarder helps you to navigate the clearance process quickly and effectively.
Warehouse Management
A good freight forwarder also offers an efficient goods management system. A warehouse is necessary for the safe upkeep of the shipments. Many freight forwarders offer warehousing services to the clients to store the goods before or after the shipping process. Warehousing facilitates freight forwarders the pickup and delivery times for scheduled packages.
Cargo Insurance
Freight forwarder agencies often collaborate with cargo insurance companies to provide suitable insurance plans for their clients. Cargo insurance companies provide protection to customers against financial losses concerning lost or damaged goods during transit. Freight forwarders help clients by providing freight tracking software and assistance to select the right kind of policy that matches their needs.
How Freight Management Software Increases Efficiency
The popularity of the freight forwarding methods and the effectiveness of the service agencies also depend upon the technology they use to manage their processes. There are various software and data management systems applied by freight forwarding companies that facilitate hassle-free and safe shipping processes.
Freight forwarding software is a common technology application to help companies manage their data and operations. The adoption of freight automation software ensures a smooth and efficient flow of operations. The senders and recipients can track their goods using the freight tracking software applied by the freight forwarders.
Freight automation and freight management software for freight forwarders can help businesses to improve their efficiency and profitability. These software solutions can automate a variety of tasks, such as:
How Automation and Technology Support Freight Forwarding Services
The evolution of technology is focused on making things easy for humans to manage and process. Effective and efficient service provision is the main focus of modern freight forwarders. People and businesses rely heavily upon freight forwarding services for transporting their goods. The following are the technological solutions contributing to the popularity of freight forwarding services:
- Booking freight:
Freight automation software is used and appreciated by modern businesses to automatically book freight with carriers, saving time and money. Freight forwarders deploy modern solutions to deal with big data and complex operations. The clients use freight forwarding software to improve the efficiency of their supply chain. This can help the corporation to reduce costs and improve customer service.
- Tracking shipments:
Freight tracking software helps senders to track shipments in real-time. This enables visibility, assurance, and access to the location of their goods at all times. A small business dealing in handmade jewelry can use freight automation software to book freight with carriers and track shipments in real-time. This can help the business to save time and money and to ensure that customers receive their orders on time.
- Managing inventory:
Data Management systems are applied worldwide to better understand and manage the information data of the business. Freight management software helps these companies set their records straight and manage the inflow as well as the outflow of shipments with all the necessary details. It also help s the businesses acquiring warehousing services to manage its inventory levels to avoid stockouts and lost sales.
- Generating reports:
Freight forwarding software helps companies to prepare reports concerning shipping costs, delivery times, and inventory levels. This information can help businesses to make informed decisions and identify their scope of work.
The efficiency and effectiveness of the freight forwarder relied upon the integration of modern solutions and effective management capacity. It’s important to find a shipping company that meets your needs and gives you a good experience. Companies with automation, agility, and transparency help businesses increase their profitability and reduce unnecessary costs on freight forwarding.
