Coronavirus has hit the world like a leaden sledgehammer and the reverberations are being felt the length and breadth of the economy and global supply chain. The volatile situation has resulted in ambiguity in terms of capacity, demand, and pricing.
The World Trade Organization appraises a 9.2% decrease of global merchandise trade this year, but predicts a 7.2% growth next year. Such fluctuations are commonplace at the moment. COVID-19 is evolving at pace, and the powers that be are having to respond in kind, resulting in a high degree of uncertainty. The freight industry is having to work hard to stay one step ahead of the ever-changing situation.
Changes to Buying Habits
The pandemic has caused people to revisit their buying habits and high streets stores have certainly had it tough. For a time, a number of businesses had to close their doors completely and when stores did re-open, they weren’t exactly met with a deluge of eager shoppers.
Cautious buyers are still shying away from browsing around stores, with many preferring to stay at home and shop online. We’ve seen a noticeable growth in eCommerce and this has impacted favourably on the demand for freight, but companies are having to deal with supply chain issues due to the pandemic.
Sea, Air and Road Freight
Ocean freight has remained buoyant, and the inflated rates match demand. However, the pandemic has caused shipping delays, and this (along with the rising price of shipping) has resulted in a surge in demand for air cargo too.
Air freight is proving a popular choice, considered both a fast and reliable way of getting goods from A to B, however the increase in demand has pushed up prices for this freight option too. It appears that there’s also been an increase in road freight, and market leaders such as UPS and FedEx have bolstered their rates in line with this.
The Future of Freight
The future looks bright for eCommerce, but high-street stores look set to continue their struggle. Freight companies will need to continue to adopt a flexible approach for the foreseeable future and the economy will need a long time to heal. Recovery will be slow and investment and employment levels have a large part to play.
Further outbreaks of COVID-19 will lead to more disruption as regulations such as lockdowns are brought in to stem the spread of this destructive virus. The arrival of a vaccine will herald a shift towards a more positive situation and freight companies may need to take on a pivotal role, offering their services to transport and distribute serums that could really be the difference between life and death, normality and more chaos.
Monitoring Freight Costs
Businesses will need to do all they can to whether the storm. Keeping a tight reign on costs is imperative and this includes monitoring freight costs. Deliveries should me made inline with any contract set up, but there are inevitably some problems along the way. Companies can often find themselves paying for a delivery service that has not met the promised requirements e.g. the package has been delivered late or incorrectly.
Freight auditing can shine a light on any issues. No one wants to pay for a premium service to the likes of FedEx, UPS and DHL and then discover the shipment has gone astray or turned up much later than planned. Freight auditing companies will check the accuracy of deliveries on your behalf, and they will do their utmost to secure a refund for you too.