Cargo Insights: Behind the narrative, forwarders are already tech-forward

[caption id="attachment_65020" align="alignright" width="284"] Brandon Fried, executive director of the U.S. Airforwarders Association[/caption] In this age of heightened political rhetoric, separating facts from biased claims is a challenge for even the most well-seasoned audience. The media may work to present only the facts, but reporters can disagree about what the actual facts are. We have seen this play out recently in our own industry though a stream of reports asserting that older, legacy forwarders are responding inadequately to our changing industry. The stories share another common thread: the lack of supporting data for such an assertion. The issue facing forwarders today is not how to evolve with the industry, but how to overcome increasingly complex logistical obstacles to transport cargo. It’s common knowledge in the logistics industry that the primary advantage of air cargo is its expediency, compared to other modes of transportation. The flight itself, however, is the shortest and simplest part of the journey. Between customs clearance procedures, handling to and from the plane, and manipulation in the terminal, delays are most frequently encountered on the ground. It’s therefore the forwarder’s job to ensure that cargo is navigated through this process and arrives at its final destination. Airfreight is not always about speed alone; indeed, for many shipments, speed is not the primary consideration. Quite frequently, other factors, including a budget, terms of sale and required assembly services play a role in the timing of the shipment. While faster transit time compared to other modes may be a factor, service options and choices such as special handling, destination requirements and post-delivery services are often more critical in meeting customer needs. During the past few years, transit time for international airfreight shipments has averaged about six days. The majority of that time is spent navigating antiquated road structures in and around airports, ground handling delays, outdated warehouse infrastructure, and crowded customs procedures. The complexity of the situation has led to forwarders taking most of the blame for not investing sufficiently in technology designed to accelerate the process. Technology is undoubtedly essential to forwarders, as many are seeing increased customer demand for primary deliverables, such as faster order processing and vendor flexibility. As a result, and contrary to recent claims, even the oldest forwarders are investing significant financial resources in technology development to provide a more efficient customer experience and increase information transparency. The forwarding industry is also seeing exciting innovation from upstarts, leveraging technology as a primary tool in achieving customer satisfaction and transaction speed. Indeed, advances in technology are enabling more efficiencies in forwarding than ever, and forwarders of all sizes and ages continue to derive benefits from automation. However, technology applications are merely tools and not the product. Advances in computerization may ease the process complexity but rarely solve the real-world challenges forwarders, large and small, face daily. No matter how effective a specific technology is, forwarders know that things may not always proceed as planned. Lasting customer relationships are built on logistical problems, and forwarders must be willing and able to solve complex challenges. Our industry continues to thrive on problem-solving when avoidable issues create obstacles that depend on personal experience to overcome. Shippers want dependable, consistent and reliable service for manufacturing support and, of course, today’s e-commerce fulfillment needs. Larger, more senior forwarding companies understand the complex state of the industry and have been aggressive in navigating the labyrinth of shipment obstacles. Technology remains a tool, but people, global presence and trade knowledge continue to be primary and irreplaceable value enhancers. For example, to alleviate capacity issues, some organizations charter flights to accelerate transit times. These forwarders employ talented experts who can provide advice and help shippers understand the impact of trade tariffs and global uncertainty. Experienced companies and many of their smaller counterparts are providing the necessary services shippers want by presenting options and choices resulting in a smarter shipment experience that factors in every critical factor, not just speed. As our industry enters the new decade, challenges and opportunities are on the horizon for shippers. Forwarders need to be ready to assist these customers with the necessary logistical tools and insights. At the same time, the forwarding industry must continue working with customs officials, local governments and all relevant stakeholders to develop solutions to overcome time-wasting obstacles on the ground in and around airports. Creating efficiencies there will help accelerate the airfreight delivery cycle. Blaming the problems on a lack of technology adoption by forwarders, against evidence to the contrary, is a futile exercise and, ultimately, a waste of time. This column appeared originally in the February 2020 issue of Air Cargo World . To read the full issue, click here .

Cargo Insights: Behind the narrative, forwarders are already tech-forward

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