The Current State of Global and Indian Ocean Freight Forwarding Market

Global and Indian Ocean Freight Forwarding Market- Current Status

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The Logistics Headlines, New Delhi, 19th April :The global carriers and freight forwarders fate seems to have taken an upward turn and hesitant excitement as the industry is reshaping its condition with enterprise logistics companies & startups in 2017, ocean carriers, tech companies for logistics freight movement, and successful business models. What defined ocean freight forwarding last year, was overcapacity. Many ships were scrapped or idled with global fleet idled to about 10%, as per a report. From Hamburg Süd, Maersk, Hanjin, none were spared.

A recent survey predicts CAGR growth of 5.3% for the global ocean freight forwarding market concerning volume until 2019, the hike is of more than twice of that seen in past two years, where TEU exports had risen just 2%.

Indian and Global Freight Forwarding Players

The Indian Ocean freight forwarding market is being improved with better warehousing infrastructure and increase in containerized cargo to build a strong freight network. Sea freight contributes largely for the mentioned industry in terms of volume and market value. With road becoming dominant mode of transport, the inland water transport and coastal shipping are at great advantage.

The major players in the global circuit of ocean freight forwarding include: USP Supply Chain Solutions, DHL Supply Chain & Globe forwarding, Kintetsu World Express, Kuehne+Nagei, Agility, CEVA Logistics, DB Schenker Logistics, Hellmann Worldwide Logistics, Yusen Logistics, Panalpina, Expeditors International, C.H.Robinson, Kerry Logistics, Nippon Express, Sinotrains, Toll Holdings, All Cargo, DSV, SDV, Uni Worldwide, Pantos Logistics, Damco, Logwin, BDP International, Sankyu, Geodis and others.

Some of the freight forwarding trends that will dominate the industry in analysis period is as follows:

  • Capacity demand will increase along with less-than-truckload and full truckload.
  • Implementation of electronic logging devices will be used to help improvise on compliance and deadlines to push the industry ahead.
  • Freight rates may increase due to increased demand but less capacity, with biggest impact in next two or three years.
  • Virtual reality, robotics and automated picking & packaging will lower transportation costs in the industry and augment freight visibility, communicate faster via such systems for any disruptions, threats, weather conditions, etc.
  • The use of APIs (Application Program Interfaces) will offer the freight forwarders in keeping the rates lower, and automate data exchanges between shippers and carriers.
  • Utilization of transportation management systems (TMS) will also help adjust the process of rate selecting across the world for freight forwarding over the oceans.
  • New administration, tax codes, enhancement in manufacturing and ocean freight movement will spur opportunities for freight forwarders.
  • What we call as ‘Amazon effect’ may hold influence over other competitors, who will now compete in sphere of regional delivery, cheaper freight shipping, operating in shipping international containers, using investments optimally in developing newer technologies etc.
  • Freight shipping forwarders will be strict on completing hours-of-service (HOS) even if it means fewer drivers will be available to move the shipments from one point to another.

The Asian Pacific regions will have a greater share in Ocean Freight Forwarding market, especially the growth will be faster in China, India, Japan, and other Southeast Asia areas. However, any changes in United States for this relative industry could affect other affluent players from other regions. EU will also play a greater role in global market, and is supposed to proceed on a healthy CAGR through 2016-2022.

 

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