Challenges facing the freight forwarding industry in 2022
Some challenges completely stifled operations in the trucking industry, forcing it out of business and out of business. A well-organized trucking industry should anticipate these challenges and develop strategies to deal with them when they occur.
The freight forwarding industry that waits for such challenges to manifest before fully preparing is contributing to its own failure. Mechanisms need to be put in place to deal with any unforeseen events that could cripple the business. This includes setting aside funds for emergencies and risks that cannot be predicted with certainty. Challenges facing the freight forwarding industry include:
Rising fuel prices have been a major factor adversely affecting the freight industry. An increase in fuel means an increase in operating costs for a business. However, freight forwarders cannot increase freight rates every time fuel prices rise. This would make a company very unreliable and unnecessarily expensive. This means that freight companies must strike a balance between stabilizing freight rates and making a profit.
Therefore, the price set must meet all expenses and leave some profit in the end. If you set a high freight rate, you will lose customers due to the fierce competition in the freight forwarding industry. The increase in fuel therefore poses a significant challenge to the freight industry as all of their ships are powered by fuel.
Shipping faces conditions of COVID-19 control. The closure of Shanghai and other ports in China has made shipping by sea almost impossible because of the unpredictable risks. In this case, sea transport was inactive while waiting for calm to return. This took a heavy toll on the freight forwarding industry, causing most operators to go out of business.
For a complete list of freight forwarding companies, you are welcome to contact Dantful Logistic and we will be able to identify local freight forwarders who can help your business deliver import and export services on time.
