The world of freight forwarding is evolving constantly due to global economic shifts, technological advancements, and changing consumer expectations. According to Maersk, there are five trends that will shape the future of freight forwarding in 2024 and beyond.
Maersk predicts that 2024 will pose significant challenges for freight forwarders, as they will need to navigate economic uncertainty, political instability, and technological disruption. However, there are also new opportunities in technology and sustainability that can be leveraged for success. By strategically investing, planning carefully, and prioritizing resilience, freight forwarders can maximize their potential for success.
Here are the trends that will define international freight forwarding:
1. More capacity, but with demand volatility
The transport and logistics industry is currently facing a combination of declining demand for freight and increasing capacity. BIMCO, the international shipping association, estimates that global container volumes will only increase by 3% to 4% in 2024, while the global ocean fleet will grow by 7.8% to reach a record high of 2.7 million TEU. Air freight forwarding, on the other hand, has seen capacity increase by up to 9% in 2023, even though demand remains tepid.
For freight forwarders, this scenario translates into increased competition and the need to differentiate themselves in the market. Customer loyalty may become more fickle, making it essential for freight forwarders to deliver exceptional customer service and value-added services. Operational efficiency will play a critical role in maximizing profitability, while carriers will continue to compete for a smaller pool of cargo, impacting rates.
2. Climate change and geopolitical tensions
In 2023, black swan events were a dominant trend for freight forwarders. In 2024, the focus will shift towards the disruptive forces of climate change and geopolitical unrest. These factors can disrupt the supply of resources, transportation routes, production, and increase costs.
Research indicates that natural disasters such as droughts, hurricanes, and wildfires are becoming more frequent. For instance, low water levels in 2023 affected traffic through the Panama Canal, the Yangtze River in China, and the Rhine in inland Europe. Moreover, global tensions and conflicts around the world – both existing and emerging – have a significant impact.