You might have heard of Globalia Logistics Network 4th annual meeting that happened in Phuket, Thailand from 15th to 17th March 2023. This is an independent association representing the freight forwarders.
Freight forwarding can be referred to as transporting cargoes or complicated logistics to any location in the world is A person or organization participates in this activity and typically plans shipments on behalf of the shipper. They are known as goods forwarders, and they serve as the middleman in the logistics network rather than being directly involved in the movement of commodities.
Coordinating the movement of commodities from the point of origin to the final destination is the responsibility of a goods forwarder. This entails managing all aspects of the process, from paperwork management and customs clearance through the actual shipping of the items. To ensure that items are delivered on time and in good condition, goods forwarders also collaborate with carriers like trucking firms, airlines, and ocean liners.
What are the Driving Factors for Freight Forwarding?
According to Extrapolate, the market for freight forwarding was estimated to be worth USD 180.4 billion in 2021 and is anticipated to grow at a CAGR of 5.1% to USD 251.1 billion by 2030. The major driving factor of this industry is the consistent growth of international trade as well as high demand of air and ocean freight.
In general, goods shipping companies provide a wide range of integrated services to their clients, including a number of extra services in addition to the usual transportation of cargo from point A to point B because of which there are increased bilateral trade agreements that also support market expansion.
Top Three Freight Forwarding Giants Globally
There are numerous freight forwarding companies which promisingly transport goods. Now let’s discuss the top three goods forwarding companies and understand their workings and how they have endured themselves for so many years.
C.H. Robinson Worldwide: This company is one of the top in its industry functioning in 150 countries spread across 6 continents. They are communicating digitally with 2.3 billion people annually, with 96 thousand contract carriers, and employing 17 thousand supply chain professionals. In a press release C. H. Robinson is scheduled to announce their first quarter 2023 earnings on April 26, 2023.
- J. Korea Express: In 1930, this company was established as Chosun Rice which later entered the business of freight forwarding, becoming the oldest and largest in South Korea.To satisfy the ever-increasing customer needs in their nation, Japanese colonial rulers brutally extracted a significant amount of rice from the Korean peninsula. Moreover, Koreans started constructing warehouses as a defensive tactic to store their primary food. Subsequently, these warehouse owners expanded their line of business to include cargo freight services, and ultimately created Chosun Michang.
Dachser: This started as a German goods company established by Thomas Dachser in 1930. Primarily Dachser provides transport, warehousing and other services that brings value. The business segments of European Logistics, Air & Sea Logistics, and Food Logistics are all covered by Dachser. The company is involved in making its logistics more sustainable and climate-friendly by taking care of green-house emission.
Benefits of Freight Forwarding
Freight forwarding services handle all of the paperwork and documentation necessary for overseas shipments. This includes drafting bills of lading, shipping paperwork, and customs declarations. A freight forwarder can assist in ensuring that your shipment complies with all relevant laws and regulations and stays on schedule by taking care of these activities.
The benefit of working with freight forwarding agents is that you can save time and money. Goods forwarders are able to achieve reasonable prices for their clients thanks to their established relationships with carriers. Additionally, they are able to provide advice on how to determine the transit routes that are the most cost-effective.
Winding It Up
In general, freight forwarding provides a useful service to companies who need to ship items domestically or overseas. Businesses may concentrate on their core operations while leaving the logistics to the professionals, due to their knowledge, efficiency, and cost savings. People involved in freight forwarding services may assist in making sure that your items arrive at their destination securely and on schedule whether you are exporting them by land, sea or air.