Four freight forwarder trends 2023 for shipping via ocean and air

It goes without saying that the biggest of all freight forwarder trends 2023 for ocean and air shipping is achieving the shortest possible delivery time. So much so that 32% of online consumers on Shopify made their purchase choice based purely on the projected shipping time. If it was seen as being too long, close to one in three online shoppers were likely to abandon the order.

There are, however, four other freight forwarder trends worth watching for 2023. Monitoring the development of trends will help your import or export business stay competitive by moving along with freight forwarders like us that stay ahead of the curve.

Freight forwarder trends 2023 for sea and air freight

Delivery time accuracy and transparency

The biggest trend for 2023 is how importers and exporters will be demanding greater transparency regarding the delivery dates of their goods. They want, at the very least, to minimise, but preferably eliminate, any opportunity loss and reputation damage from shipments failing to arrive on time. Importers and exporters need as much notice as possible of potential delays, so they can plan around the impending disruption.

More and more importers and exporters are organising their shipping with freight forwarders that can provide the best service. They look for consistent delivery time, accuracy and transparency on delivery progress. They need updates on key steps along the route, including departure ex warehouse or factory and transition through ports, right through to arrival at destination.

Consumer pressure on retailers drives a lot these freight forwarder trends

It is apparent that consumers are more likely to commit to purchases when the shipping policies are clear. Shopify data from 2022 shows 22% of online shoppers abandoned their carts because there was no confirmed delivery date. That is more than one in five online consumers with this expectation, and it will only grow. This trend is carrying over to importers and exporters needing to minimise warehousing and storage costs to maximise their competitiveness and cashflow.

Increased use of Radio Frequency Identity (RFID) tags

In existence for more than a decade, RFID tags have increasingly been used to provide real-time tracking data as part of the shipping process. Shipments, or products within the shipment, are fitted with a RFID tag. Advanced multi-functional RFID tags have recently become available, with additional sensors that measure and report temperature.

How RFID tags are integrated into shipping

Readers are installed along the route at various key points, such as warehouse and port storage areas. The readers register the RFID and in real-time update the data to integrated online systems. This helps track the delivery progress of the shipment or products precisely. This data can help accelerate the delivery management system by re-allocating the shipment in an onward distribution process when conditions change.

Advantages of RFID tags in freight forwarding

As global freight becomes more competitive, freight forwarders that can offer RFID tags as part of ensuring delivery time accuracy and transparency will become more attractive to importers and exporters. The major advantages that RFID tags offer when used in shipping are:

• Real-time visibility and high-speed goods tracking
• Help locate products quickly and accurately
• Reduce errors in recording to almost zero
• Help strategically plan product locations in warehouse
• Simplify supply chain management and tracking process

RFID tags that can track temperatures of the shipment or products can be used to ensure the integrity of sensitive goods, such as medicines or chemicals, is not compromised while being transported.

Delivery time accuracy and transparency is becoming a standard

Rising costs from increase in fuel prices

From January to June 2022 the price of fuels increased dramatically. In the US, for example, diesel rose 55%. This will have a flow-on effect to the global freight industry, as fuels are a major cost in freight forwarding. Fuel increases affect air freight with higher aviation prices, and sea freight with higher oil costs. Land transport via trucks and rail is affected by higher diesel costs.

Root cause of fuel cost increases

The main cause stems from the instability of numerous international economic sanctions that have come about from the Russia-Ukraine war. These sanctions have led to a significant demand-supply gap for oil in the western trade markets. With no end to the war in sight, the cost of derivative products, such as diesel, is expected to remain high throughout 2023.

Reaction from carriers has been swift

Several air freight shippers are adding an additional charge to cover the price hikes on fuel. Emirates SkyCargo said that fuel is the largest expense when shipping via air. Matthew Scott, Emirates SkyCargo VP, stated, “Fuel costs have more than doubled compared to the same period last year, and it is presently the greater part of our business expenses.” DHL Express has also put in place an additional charge on fuel.

Many ocean carriers are also implementing new fuel surcharges for the same reasons. To mitigate fuel costs some carriers are sailing ships at a slower speed to lower the fuel consumption. This, however, leads to longer shipping times so has not been widely adopted. The implementation of new fuel surcharges will, therefore, spread throughout the global freight industry in 2023 to ensure they remain commercially viable.

Rising costs from increase in fuel prices will be passed on as new fuel surcharges

Increasing environmental regulation for sustainable shipping

For the global freight industry, there is a growing number of fuel efficiency requirements and maximum emissions standards for aircraft, ships and vehicles. Increasing environmental regulations and consumer pressures to reduce pollution and carbon emissions are forcing the logistics industry to take on a green infrastructure and develop a solid direction towards sustainable shipping.

Environmental regulation in some countries requires companies to include climate-related disclosures on their taxation returns. This is also forcing companies to report risks associated with climate change. With the pressure to combat, at all costs, the perceived danger of climate change, the trend of increased environmental regulation is expected to continue in the coming year.

Increasing environmental regulation for sustainable shipping

Greater use of advanced technology and automation

In logistics, technology and automation have always been the driving force used to make efficiencies that result in lower costs and improved performance. The global freight system, with its transportation and warehousing, ranks as the third-highest automation potential of any industry.

The most common form of automation is the expanding use of online systems to better integrate directly with the carriers and customers. For customers seeking quotation, provide a self-serve automated gateway through which they can obtain quotes for both basic and complex, multi-leg shipments.

Customer visibility – Provide a control panel that can be individualised so clients can see and reorder their shipments, connect and communicate with their shipper.

Carrier connectivity – Use web-based devices with fast connectivity to a wide network to intermodal shippers.

Moving forward, we will see the advent of more cutting-edge automation systems in this sphere. These will include UAVs, AGVs and more.

What technologies are behind current freight forwarder trends?

Numerous technologies are being applied to simplify logistics. This will make shipping more efficient and better optimise resources such as:

• Artificial intelligence
• Machine learning
• Computer vision
• Connected IoT networks
• Blockchain

This rise of development and implementation of advanced technology and automation is expected to keep trending in 2023.

Greater use of advanced technology and automation

Freight forwarder trends wrap up and help if you need it

A key takeaway is that freight forwarding will continue to shift conventional mindsets towards developing solid supply chain and logistics strategies that align with the developing landscape in 2023.

If you are looking for a freight forwarder to help you with your needs, contact Freight Forwarder Quote Online Australia. With our experience and competitive Australian air and sea freight service, we will be able to put together the most cost-effective solution. Try our online instant shipping quote tool to get free and unlimited quotes.

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