Traditional Freight Forwarders under Threat by 5 Types of Companies

Now it seems inevitable that the conventional freight forwarders will soon lose volume to the startups emerging and suppliers digitizing companies. While 17 percent think that the air freight forwarding won't get disrupted, 50 percent of the respondents that took a survey done by Transport Intelligence (TI) felt that the traditional freight forwarders would lose the market share. With the tremendous growth of Integrators and Amazon shifting into air freight, TFF needs to change to digitalized forwarding with the help of SEO expert Los Angeles, to improve efficiency.


Competitors incubating

Now that we are in a digital time, TFF must adopt the trending technologies if they want to enhance their customer experience. Today, there is a notable acceleration of tech progress running across social and business interactions. That's because of the emerging trends of Artificial Intelligence, and many more.

As the industry competition intensifies, so does the race of establishing market-leading spots built on the latest technology are now on. The top players are now head to head, trying to deliver the top-notch customer experience.


Integrators enter logistics

Since the large integrators like DHL, TNT, FedEx, and UPS shifted to general freight business, the TFF market share continues to deteriorate. Other upright sectors other than the air express to benefit the air freight forwarders in the coming years include pharmaceuticals and perishable goods like flowers and food.

When Amazon expanded its services to become part of the ocean freight forwarder, it brought a significant concern to the logistics sector. Some of the discussion was whether the move was going to fade away the traditional forwarders. Other promising trade lanes are in Asia, starting from Asia-Europe, Asia-North America, and intra-Asia. That shows more cargo shipment will happen around the continent due to the escalating consumption.

Therefore, traditional forwarders must improve their tech ability with the SEO expert Los Angeles services. Logistics and digital capacities are going to be crucial in the future, and they need to fit in, so they can scale their business high.


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Customers become competitors

As the user compares the online rates, while managing their shipments, it would be better to have one platform to do it all. Consumers are seeking a faster delivery that is flexible and transparent. They also expect to pay the same regardless of the constraints the shipping industries face, without incurring any surcharges even for expedited services.  


Startups emerging


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New entrants in the freight forwarders are making such a significant impact. As the most challenging element in this sector is the fragmentation of last-mile delivery, the need to exploit more options such as cloud platforms that complement crowd sharing, is now happening. Uber, one of the largest crowd-sharing, is also eyeing the logistic market. Already it has established one of its services in Hongkong known as UberCARGO.


Conventional startup models

Since this setup is not a digital forwarder, you won't find a booking interface, marketplace rates, an online quotation, or an analysis of big data. That's a spotlight of weakness that needs to get fixed to enhance the user experience. A company such as the SEO expert Los Angeles is the right person to contact to take care of this problem. Customers require a service provider that can offer more than just pricing, but accountability is essential.


Suppliers digitizing

Even as the majority of forwarders go digital, the conventional counterparts say their job functions involve human resources. The containers require physical transportation from one venue to another as per the customer's needs. Despite the beautiful appeal of automation, when things go awry as they sometimes do, human interaction is what the customers need most. Imagine a scenario where a client's container gets caught in a snowstorm; someone needs to be taking care of those changes ASAP.


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Many industries are coming up to foster new digital services that will tackle the inconveniences that shippers are facing in the supply chain. The digital freight markets come to fore include Saloodo, a subsidiary of Deutsche Post DHL Group. It introduced a digital solution that caters to all freight modes and enables easy access to road freight carriers. Other container shipping lines are joining the digital field to rebrand themselves. Maersk is one of those that launched an online portal where they can facilitate a digital customs clearance.

 

Supply chain disruptive 

Traditional forwarders need to accelerate the evolution of the supply chain. Although there's no one size to fit all, every business has a unique supply chain. The disruptor shows a slow tech-adaptation.  

 

The solution:

After the traditional freights realized the danger facing them, according to a report given by A logistics, Trends, and Insights (LTI), the TFF has invested $220billion in the global market to keep up with the rest. 

The forwarders pointed by the LTI, Kuehne $ Nagel, are proving to be a significant operator with online tools. It launched a single access point called myKN, which got a lot of criticism. Users have to click individual modes when making a comparison in rates and managing shipment.

However, we are looking ahead to the day that K+N will manage to incorporate the methods into one platform that will give the user ease of use. Established forwarders like Temasek and K+N are emerging startups coming into a joint-venture in logistics investment. After DSV partnered with the Peres Centre for Peace and Innovation, they are also considering the options.


In conclusion, as traditional freight forwarders continue to face a threat from the digitized companies, it needs to embrace the new-age solution. Going digital may seem a little challenging, but with the SEO expert Los Angeles, it won't feel that way again. Their services will help them to be in sync with the current fast-paced environment. Most people are aware that E-Commerce is a promising sector that requires more exploration. Leveraging in digital will improve your business offering.


Naman Modi is a Professional Blogger, SEO Expert & Guest blogger at ebuilderz.com, He is an Award Winning Freelancer & Web Entrepreneur helping new entrepreneur’s launches their first successful online business.


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