Time for the forwarders to keep a strict vigil on the freight market and the various concerns related to shipping this new year. The strain in the market continues as consumer demand rises but limited edition pursues.
FREMONT, CA: There is an urgent need for the forwarders to find an immediate fix to obtain visibility and deal with the unpredictable markets. According to S&P, DHL’s strong financial performance for the quarter has been contributed by higher freight rates, with EBIT for the company’s freight forwarding division has more than doubled to EUR 372 million (USD 430 million). Some above-average profit trends have been seen in other major forwarders as a result of the fact that there is an increased strain on them moving into 2022. Such issues can be expected as companies often face disruptions throughout the market. One thing that freight forwarding businesses should be aware of is that they must have the proper protocols and efficiencies that are much needed to combat the issues affecting the freight forwarding market.
Shippers and forwarders should get used to seeing such activities in the coming years. The COVID-19 pandemic has resulted in popularising online shopping methods, and people have started to find a comfortable space by relying on delivery methods as a result of which the market has seen a rapid increase in online shopping as compared to the decreasing demand for physical stores. Such an unexpected situation can be a cause of great concern for companies that have not been proactive in preparing for a change like this. Likewise, the freight forwarding market should be agile enough in planning methods to cope with more issues on the already strained network.
The peak season surge has been longer and more exhausting than in the past years, as reflected throughout the supply chain and the freight industry. Companies continue to face issues with driver availability, capacity, and increasing freight costs. On the other hand, there has been no change for many throughout the industry. The peak season remains constant as capacity issues, increases in spot market pricing, decreases in service levels, and transportation issues continue to infest the industry.
The tension caused by the pandemic will continue into 2022, so having the proper software and other benefits from freight forwarders might be the solution. As long as the best mode of transportation seems to be trucking and carriers, companies will require assistance keeping up with the high rates and shipment quantities.
