Freight forwarding is one of the most rewarding jobs a person can acquire but that does not mean it is free from risks and challenges.
Freight forwarding is one of the most important features that is keeping the essence of trade alive. Trade will never stop. We all shop and buy items from all over the world daily which is why trade is so important for every human being. Freight forwarding focuses on trade through different means and routes.
Freight forwarders work both nationally and internationally depending on the requirements and trade system of the company. Nevertheless, all types of freight forwarding play a huge role in our daily lives and shape how we live in ways we don’t even realise. But what would happen if there is an issue that might disrupt this procedure of shipment? A good example is that of The Suez Canal and how much the entrapment of the Evergreen Ship caused a frenzy around the world. The situation puts into perspective the importance of trade and freight forwarding.
This also makes one appreciate the work that is put in by every person responsible in a freight forwarding company. Nevertheless, like every wake of life, it is easy to find challenges that cause numerous issues in the freight forwarding world. Many of these issues can cause a lot of trouble to the people involved in the industry and thus require constant vigilance from the workers.
Good and well-maintained freight forwarding is important not for a company but for the trading system of an entire country or in some cases, the world.
- FUEL PRICES AND AVAILABILITY:
Probably one of the biggest issues facing freight forwarders is fuel prices and availability. It doesn’t matter if a company provides air or water freight forwarding, both of them require a good amount of fuel consumption. If there are some unforeseen circumstances in the workflow then this adds up to the entire fuel consumed which can cause a lot of financial damage to the freight forwarding company. The rise of prices of fuel adds up to the issues caused to a freight forwarding company in going towards losses instead of profits.
Because of all these issues, many other alternatives such as hydroelectric power, solar power are being explored to find new and better solutions to this issue.
- ENVIRONMENTAL CHANGES:
One of the many issues which are out of the hands of the freight forwarders themselves is the environmental or climatic changes. The climate is ever-changing. From rain and snow disrupting air freight to cyclones causing issues with sea forwarding, the environment can cause multiple issues in the freight forwarding business.
Of course, no one can control the weather and thus this is one of those issues that can not be controlled by the companies themselves. However, it is crucial to keep checking and updating the weather condition to avoid the ruining of cargo and damaging equipment during the process.
- TECHNOLOGY IMPLEMENTATION:
The world is ever-changing. New and modern technology is being introduced every day. All of this new equipment and technologies are designed to make our life better and easier. However, this also adds up to the costs and spending that the freight forwarding company has to make to stay on top of the game.
Many freight forwarding companies are old fashioned and believe in the usage of th of technology that runs through generations. This is also bad for a freight forwarding company. You might not understand this but every freight forwarding company needs to stay updated with the world to make sure it can compete with the others in the same race.
- CUSTOMER SERVICE:
No business can survive or think about surviving if they don’t provide quality customer service. Freight forwarding is no exception. Freight forwarding is among the businesses that need to provide good customer services to make sure that the people who hired you once will hire you again as well and potentially build a long time relationship with the client.
Customer services matter a lot when it comes to freight forwarding. However, it is fairly easy for issues to arise that can lead to negative responses from the customers. This can seriously affect the business of a freight forwarding company and can lead to a lot of issues in the future as well. Freight forwarding companies often have to work with international clients as well which is why it is important to make sure that quality services are provided even if the customers are seas away. This can only be done when there exists a good relationship between the different branches of the freight forwarding company. A company needs to have all of its employees in check with all the updates needed to make sure that every shipment is made on time and customer service is top-notch every time.
- NATIONAL AND INTERNATIONAL LAWS:
Freight forwarding is both a national and international trading system. There exist many risks and challenges that might arise because of this. Every country has its own rules and regulations and as a freight forwarding company, it is the job of the forwarders to know all of these laws and make sure that you are well aware of all the requirements that will allow you to do your business with ease. With the ongoing pandemic, it is crucial to make sure you know all the coronavirus rules of a country before you transport cargo to it.
If you own a freight forwarding company that works only in your country then this jobs becomes a little easier to manage but with international trades, you must respect all the laws and adhere to them as well.
Trade never stops. Even with a pandemic going on, trade has not ceased in any way whatsoever. This makes you understand the importance of freight forwarding and also makes you appreciate the work of all the people who are regularly working to provide you with national and international goods. Freight forwarding is one of the most important businesses that keep the world running. And along with its importance, there exist many issues and challenges that need to be addressed and taken care of before proceeding with the process of trade and shipment.