Early Q1 allowed us the opportunity to establish deliberate conversations surrounding the trends predicted to impact the air freight forwarding industry as the year progressed. Now, halfway through 2019, we have decided to revisit these projections to ascertain continued relevance, if any.
1. Automation and digitalization: As written in our initial blog, “While automated sectors of supply chains have been progressively increasing over the past year, the efficiency and instantaneous effects digitalization has had on the industry has simultaneously generated a necessity for even faster progressive technology implementation. Digital cooperation has been stereotypically lack-luster in the world of air freight, notorious for extensive paper trails. Nevertheless, 2018 showed promise as airlines and international freight forwarders began investing in new technologies to aid in efficiency, speed, and accuracy. Allowing them to remain highly competitive while concurrently reducing the size of their carbon footprint.”
Today, as of June 7, 2019, we conclude the relevance of digital automation to be highly prioritized in a continued uptrend that was initiated last year. Number 1 continues to show heightened significance. No real surprise here.
2. To Increase Tariffs or Not to Increase Tariffs: Again, per our aforementioned post, “Amidst the continued speculations regarding market uncertainty, comes more regulatory changes and conjectures for 2019. Freight forwarders and logistics companies alike are warning carriers of impending price increases coupled with complex procedural checklists and extra hoops to jump through. All this tightens the already rigid flow of international trade, exacerbating the ripple effect of volatility and ambiguity. Trade tensions between the United States and China continue to escalate.”
Six months later, here is what we know: All three previous lists have fully implemented 25% tariffs attached to the imports. A new list is also currently under review that would cover the remainder of goods imported from China if considerations turn to implementation. Hearings for this list are set for later this month (June 2019).
In short, our top predictions for the freight forwarding industry are par for the course thus far with some mitigating updates presented for sustained accuracy. We will continue to inform readers and clients with any news affecting the efficiency of supply chains, be it influentially negative or positive. As always, if you have any other questions regarding the logistics of your business or would like more information, please feel free to reach out to us HERE.