Freight management, global forwarding, and supply chain logistics depend on innovative and up-to-date e-commerce shipping solutions. This includes traditional truck and road transportation and more creative and customer-focused modes such as air freight. As a ResearchandMarkets.com report published by PRNewswire, “The Air Freight Forwarding Market is expected to grow at a CAGR of around 4% during the forecasted period. Although land and ship cargo transportation remain favorable options, goods transport by air is considered the quickest and the unhindered mode of transportation.” As a result, forwarding services and e-commerce shipping solutions drive continued growth and recovery today. Knowing the expectations for the year ahead makes it easier for ocean freight forwarders to maximize shipping solutions for e-commerce services.
What’s Driving E-Commerce Freight Forwarding in Summer 2022?
Consumers’ unprecedented demand for these services is one of the driving forces behind the need for fast and reliable e-commerce shipping solutions. With lockdowns and local shutdowns limiting consumer access to various goods and services, e-commerce demand exploded. According to 2022 projections from Insider Intelligence, online sale milestones have arisen sooner than most industry experts had expected. As a result, US e-commerce will likely exceed $1 trillion for the first time in late 2022. Worldwide, online sales will likely continue the trend as they are expected to reach $5 trillion in 2022 and $6 trillion by 2024. Even as recovery continues, these e-commerce freight solutions will become more vital than ever for the ongoing efforts to boost throughput.
How Are Forwarders Responding to Growing Demand?
While the demand for innovative and customized e-commerce shipping solutions is apparent, forwarders need to respond efficiently. Using reliable data and analytics, they can more easily customize existing shipping solutions for e-commerce. In addition, investing in real-time tracking, same and rush-delivery services, secure transportation, and other specialized shipping options ensures customer needs get met successfully.
How Are Ecommerce Freight Forwarding Rates Trending?
Today’s e-commerce freight forwarding rates remain impacted by chain reactions that ripple across the supply chain. The second round of massive lockdowns among major Chinese ports is fueling rising forwarding rates and expenses. According to a June 2022 Freightos report, the “two-month lockdown in Shanghai has significantly impacted the availability of exports. Though authorities are trying to jumpstart production, manufacturing continues to drag. And with the city’s trucking capacity down an estimated 45%, it is difficult to get imported materials from the ports to the factories – or available shipments from factories to ports. These factors have led to an estimated 20-30% drop in export volumes out of Shanghai since the lockdown began.”
With capacity tight, bottlenecks and backlogs extensive, and delays happening from the start of the supply chain, rising forwarding rates continue to dominate the market today. This only adds to the need for effective and innovative e-commerce shipping solutions to keep up with current trends.
Reasons Why a World-Class Platform Is Key to Better Forwarding
Productivity depends largely on collaborative efforts between team members, managers, third-party members, and customers in a digital day and age. The need for e-commerce solutions for online retailers and freight forwarders has never reached such heights as today. Focusing time and resources on improved forwarding and shipping solutions for e-commerce brings many benefits that allow for better forwarding.
- Easier access to data and insights on-demand
- Faster collaboration with on-site and off-site team members
- On-demand access to forwarding data and resources
- Better connectivity and communication opportunities
- Insight into processes to overcome critical challenges
- Ability to track and monitor loads in real-time
- Reliable updates and notifications sent on-demand
- Access to vetted drivers, carriers, and shippers
- Cooperative efforts for e-commerce shipping solutions
Improve Your Use of E-Commerce Freight Forwarding Data and Resources With Cargologik
Managing rates, fees, and expenses related to standard e-commerce freight solutions depend on industry insights and access to real-time data and reports from partners. Understanding market trends gives forwarders the best opportunity to use e-commerce solutions. It is easy to improve e-commerce solutions for online retailers and give customers the service they expect from an industry partner. Signup for Cargologik today to get started!