The Freight Transport Management market is expected to grow exponentially and reach USD 41.36 billion by 2023. With the increase in population and globalization worldwide, there is an increasing demand for goods and services. This has consequently seen the increase in freight shipping to accommodate the ever-growing demand market.
However, what do you need to know when it comes to freight shipping? Knowing the right freight solution and using a freight delivery service will help the client weigh their options. There are also classifications for item size, value, or density, which is standardized depending on the price. This enables the customer to gauge the pricing options that may be required. However, specialized services such as handling fragile or perishable goods will attract higher costs.
The shipment destination also warrants fluctuating shipping rates depending on the distance to the central station point. The type of shipping methods used will also result in fluctuating shipping prices.
Industry players have sought to develop fast and innovative transportation options that reduce costs and offer high capacity solutions. This has sought to improve operational efficiency, which in turn boosts a country’s economy.
Companies also prefer freight shipping due to the premium security of goods and eco-friendly solutions. The possibility of freight shipping provides immediate solutions to companies by embracing intermodal transport processes faster and more reliable. For instance, freight shipping incorporates transport through railroads, trucks, or ships with containers. All these processes contribute to the seamless integration of efficient and reliable systems that ensure continuity of freight services and faster delivery timelines.
Digitization Trends in Freight Forwarding
With the increase in shipping solutions, technology’s role has sought to revolutionize the freight transport sector by developing new resources. Digitizing the entire freight transport market enables companies to track their cargo, ensuring they are transporting within the right channels.
Creating these automated systems, however, requires intensive restructuring of information systems within the freight market industry. For instance, replacing manual processes with digitized processes will ensure constant, integrated data sharing, eradicating the need for intermediaries, and consequently gaining full control of the freight process.
Currently, the freight transport market has embraced the state of the art technologies which have revolutionized the industry. Customers can now receive constant feedback on their cargo location and expected delivery timelines. This digitization has also significantly improved the industry, with more deliberate technological streams set to propel the industry further.
The automation of the freight processes has also fastened the process through automated invoicing options, availability of smart contracts, and self-validation, which would have otherwise been time-consuming. These processes have sought to improve vendor to supplier relations and reduce management hassles experienced through miscommunication.
With more industry players embracing IoT solutions, advancements in technology are set to develop as follows:
- Cloud deployment
Collecting and storing vast amounts of data and information into servers will be embraced to higher scales in the upcoming market. As industry players adopt more innovative ways of data synthesis, the industry will see a growth in data reliability, thus better quality of services and reduced operational costs.
- Software Systems
The adoption of sophisticated software models is also set to increase in the coming years. These systems are designed to assist in operational processes such as resource planning, cybersecurity, logistics, financed and accounting, marketing and research, and supplier management. These systems are set to advance in scope and intensity with additions made to the current software programs currently being used. Adopting these systems will improve the overall effectiveness of information and communication and reduce the possibility of error. This will also contribute to an eco-friendly paperless system module.
With the fast-paced freight shipping developments, the need for infrastructure development is imminent. With almost 70% of freight movement relying on trucks, there is a need for various multi-modal systems that cater to the demanding market. Additional avenues of transport will also lead to new projects which expand roads, highways, shipping routes, and pipelines to pave the way for more transportation.
The ban on diesel HGV vehicles will also drive the industry towards adopting more eco-friendly practices towards climate change. This will ensure railroads and trucks adopt stringent measures towards carbon-free practices, therefore contributing to national infrastructure. Industry players, especially those in water transportation, will be required to install new equipment to reduce carbon emissions by half.
Tips to Consider
When adopting all these new and exciting solutions, industry players should be careful to:
- Adopt a rigid and stable cybersecurity plan to protect the company data
- Stay updated on the changes and risks of information systems to avoid manipulation
- Offer trainings and workshops to employees to ensure proper usage and utility of automated systems
- Adopt sustainability options in business models to ensure continuity of business with future adoptions