This was with the introduction of what was referred to as “digital connectors” which would technologically link up the shipper and carriers surpassing the need for an intermediary such as a freight forwarder. Some ways forwarders are applying digital solutions to improve the customer experience include: Other steps that international freight forwarders are taking to build customer relationships include developing user-friendly, easy-to-navigate websites and cultivating a stronger online presence, including strategic content marketing and social media activity. How have you been impacted by digitisation lately? These seven trends all have ramifications for shippers and will be worth watching during 2019. But at its core it is providing a simplified, frictionless and transparent experience to shippers. It was a pleasure talking with James Miller from Maritime Standard . In the fast-paced world of real-time communication and transactions, it was slated for traditional freight forwarders as intermediaries to become redundant with them being surpassed for direct carrier to shipper interactions. SMEs save time through instant quotes and by dealing with forwarders on a transactional, shipment-by-shipment basis—but there are advantages for the forwarder too. The same is evident with the digitization in freight forwarding, with traditional freight forwarders needing to keep up in the midst of threats from digital disruptors. Moller-Maersk became the victim of a cyber attack that crippled the company’s infrastructure, and caused severe disruption at ports around the globe. With it, freight forwarding agents ascended to experts of not just shipping, but of documentation, packing, warehousing and not to mention supply chain too. Therefore, making it impossible to tamper with records. It was more than a year and a half ago that shipping giant A.P. Furthermore, freight forwarders should also incorporate smarter strategies and introducing services and products that are attractive to the ever-evolving customer base especially those that are digitising and reaching for globalisation. The freight sector may have been late to the digitization party compared with some other verticals, but now there is a palpable sense of urgency as incumbents and startups alike deploy the latest technologies to solve a range of industry problems. As you can see, there are a … Secondly, when customers use an online platform, they input their data directly, eliminating labor costs involved in traditional quotation and booking requests. However, if the freight is a no-show at the port, the shipping line receives all the deposited tokens. But these moves, in themselves, are not enough. Shipa Freight is a new online platform powered by Agility that makes it easy to get air and ocean freight quotes, book, pay and track your shipments online. Incumbent digital forwarders are well positioned, with global coverage, transportation in different modalities, and an existing customer base. Startups, suppliers, and even customers are using digital technologies to develop a variety of innovative business models that will dramatically improve the customer experience and eliminate entrenched operational inefficiencies. “Fundamentally, we believe that freight-forwarding companies shouldn’t build their own technology,” Alvarez said. Port delays might disrupt carefully engineered just-in-time supply chains. “Freight forwarders need to understand the power of going digital.” Alvarez and his brother, Juan Alvarez, founded Logixboard in Miami in 2017, but soon after moved the software company to Seattle because of its tech-rich pool of logistics talent and the ability to raise more venture … Hence it goes without saying that freight forwarding companies need to take advantage of this opportunity and open up more sales channels to be able to keep up with this growing trend. While the freight we manage is still real, he says digitization is getting rid of the human-intensive activity, replacing paper with automated processes. The arrival of apps and software for freight forwarders, that allows everything from invoicing to freight tracking to be done digitally, means that a paperless future is a possibility. For example, the rise of inbound marketing is one such channel which can be used in order to get customers to visit your website and gain leads to garner business. Means of ensuring that digitization in freight forwarding equals to productivity and efficacy. But one thing is clear: embarking on the digitization journey is no longer optional for international freight forwarders. By utilising digital technologies there are various functions in which digitisation in the freight forwarding industry can happen. Awave of digital disruption is about to hit sea and air freight forwarders. Fulfilling customers’ quotation requests in minutes instead of days; Making quotes more transparent by providing a full breakdown of fees and surcharges; Increasing visibility and access to information for shippers; Providing customers with a fully integrated suite of functions, from quotation to last-mile delivery; Implementing self-service and assisted value-added services (such as compliance assistance and professional guidance) through process automation. The digitization process of the shipping company has changed our price channel, which gives us the opportunity to reduce our reliance on the first-level agent, and to some extent to narrow the cost gap with the first-level agent. Meanwhile, the acceleration of technological progress continues across social, cultural and business interactions today, from the emergence of self-learning Artificial Intelligence (AI) to self-driving cars. First, let’s briefly look at the importance of speed and timing in general as they are essential everywhere. With our global network of logistics experts and industry-leading technology, we ensure that your goods arrive safely and reliably every time. But clearly, savvy shippers are creating this kind of online platform. While the digital frontier is the future (and present) of freight forwarding, there are core characteristics that an excellent 3PL must have that don’t come through just the best technology. Maersk’s TradeLens technology, for example, is a blockchain solution currently in use to streamline and secure the exchange of information between more than 90 companies and organizations involved in global shipping activity. The incident was a wake-up call for the freight forwarding and shipping industries, stimulating forwarders’ consideration of the need to strengthen data protection and guard against future attacks. The platform hype in freight forwarding The freight forwarding industry is said to be a business model prone to dis-intermediation, with many players aspiring to realize its platformization potential in recent years. The freight forwarding industry is no exception. Events such as the China/US trade war or the United Kingdom’s chaotic progress toward exiting the EU can impact on shipping strategy and execution. Brian also points out that there are different levels of digitization, noting that transportation and warehouse management systems were early examples of automating manual processes. As the digitization of freight forwarding is widely viewed as an ongoing process, a report issued this week by Freightos, a SaaS-enabled logistics technology provider focused on instant freight quotes for freight forwarders and shippers, highlights how the ongoing road towards digitization and will change customer service differentiation. Julian Alvarez looks to automate interactions between freight forwarders and shippers. This is significant when considering that thisis a demographic that has come of age using online interfaces for business and pleasure.They … Meanwhile, the outcome of Brexit is a complete unknown. The shipper and the carrier deposit cryptocurrency tokens as part of the freight booking transaction. According to “The Evolving Freight Forwarding Market 2017,” digitization is looming large in the immediate future. But one thing is clear: embarking on the digitization journey is no longer optional for international freight forwarders. Firstly, by providing instant quotes and the convenience of an online platform for bookings, forwarders make their services more accessible to the fast-growing community of internationalizing SMEs. Digital trends have in the past disrupted how traditional transactions occur and have paved the way to what we know now. The digitization of cargo transportation processes is an evolutionary step change, presenting new challenges and opportunities for freight forwarders. Of those, only Shipa Freight currently provides instant quotes for full-container-load (FCL) shipments, in addition to LCL and a full range of air freight options. The digitization of the freight industry is about improving speed and efficiency. Some companies have started incorporating advanced analytics, robotics, and digital front ends. But one thing is clear: embarking on the digitization journey is no … Top 25 Freight Forwarders 2017: Digitization & E-Commerce continue to reshape the marketplace The global freight forwarding market has grown by 2.7% in real terms since this time last year, but owing to a continuation of excess capacity issues and lower average oil prices, rates continue to fall in both air and sea freight. But, when considering how customer appraisal ofthe market has radically shifted, it may be the only path forward. If the shipper’s freight arrives at the port as agreed, both parties get their tokens back. A seamless end-to-end experience is an essential element in the digital freight forwarding company’s marketing and sales proposition. We cover Railway, Road Traffic, Airways, Shipping & Port and run with an objective to provide knowledge driven content to our readers and subscribers in various forms like news, projects, upcoming events. It’s greener, for a start. Paperless air freight forwarding has multiple benefits. This trend is actually a very good benefit for our small and medium international freight forwarding companies. In the new age of global trade, complexities and conflicts are hard to plan for and no longer have localized impacts, meaning the agility digitalization can bring is more important than ever. Traditional Freight Forwarders vs Digital Freight Forwarders Under the advent of a digital revolution that is ubiquitous across all industries, the Freight Forwarding Industry hasn’t really been left behind.Digitization is disrupting the traditional ways of doing business and it is imperative that forwarding as an industry also adapt to this wave of change. Traditional forwarders will digitize. It is probably too early to say whether solutions like these will revolutionize the freight forwarding industry, but blockchain technology certainly appears to be gaining traction. The next is to enrich shipping data even further with the aid of the Internet of Things. Some examples include: From the customer perspective, the arrival of the online freight-shipping quote should be a breath of fresh air. Another example is the TEU token system by a startup called 300Cubits, which promises to solve the problem of cargo no-shows at ports and the overbooking of capacity practiced by carriers as a countermeasure. The digitization of cargo transportation processes is an evolutionary step change, presenting new challenges and opportunities for freight forwarders. If customers receive access to such solutions via forwarders’ digital platforms, they will not only gain real-time insight into shipment progress but will also be able to monitor the condition of their goods—especially valuable for perishables or items sensitive to environmental fluctuations. This process is constantly evolving with new theories, practices, and strategies being produced to facilitate better numbers. As the digitization of freight forwarding is widely viewed as an ongoing process, a report issued this week by Freightos, a SaaS-enabled logistics technology provider focused on instant freight quotes for freight forwarders and shippers, highlights how the ongoing road towards digitization and will change customer service differentiation. Podcast - The Impact Of Digitization On The Logistics And Freight Forwarding Industry Tweet Mark is the Operations Director of MapCargo , a rapidly growing independent freight forwarder, with operations spanning across the U.K., the U.S. and other parts of the globe. However, in 2017, McKinsey stated that freight forwarders would become redundant whereby digitization in freight forwarding would make manual shipment transactions obsolete in the future. By utilising digital technologies there are various functions in which digitisation in the freight forwarding industry can happen. By 2020, the Millennials are expected to make up 35% of theworkforce (the same as Gen X.) They should start automating their tasks to speed up the process and this would take their customer experience to another level. Designed by OnePort 365, a digital freight forwarding start-up, the new web-based platform is the outcome of research aimed at easing the unnecessary challenges freight forwarders face. The freight-forwarding sector has traditionally been very process-focused. The first step is to aggregate shipment data from the many systems involved in ocean or air freight transportation, and present it to customers via a single user interface. In the past 10 years, some freight forwarding companies have provided online customer portals, says Ting. Maritime Standard giant A.P incorporating advanced analytics, robotics, and other participants to bring new solutions... Feel free to skip this part and go to the topics you ’ re interested! 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