New Articles

Why Supply Chain Due Diligence Is Becoming a Business Imperative

global trade

Why Supply Chain Due Diligence Is Becoming a Business Imperative

Supply chain due diligence requirements are growing quickly. What’s driving this shift, and why are so many companies struggling to keep up?

Supply chain due diligence is becoming much more data-driven. Regulators increasingly expect companies to provide verifiable information about where products come from, how they’re made, and whether human rights and environmental standards are being met. EUDR, the EU Forced Labour Regulation, PPWR, and the emerging Digital Product Passport framework are all moving toward the same expectation: trusted, structured supply chain data.

Read also: Set Up a Compliance-Ready Export Supply Chain

This summer alone illustrates how quickly expectations are changing. New guidance on the EU Forced Labour Regulation arrived in June, the Digital Product Passport registry launched in July, and PPWR follows in August. Many companies are still trying to meet those expectations with disconnected systems and manual processes, an approach that simply doesn’t scale as regulations become more complex.

We’ve seen the difference firsthand. One brand completed a full due diligence assessment in 31 minutes, while another needed several hours and a team of six. The regulation didn’t change between them, just their data readiness. 

You often describe supply chain due diligence as a “pre-competitive” issue rather than a competitive advantage. What do you mean by that, and why are major retailers beginning to collaborate instead of building their own proprietary systems?

Supply chain due diligence is not something companies should compete on. The goal is to create a common foundation for collecting and assessing supply chain data so everyone is working from the same baseline. The real competitive advantage comes from how companies act on those insights, not from maintaining proprietary questionnaires or duplicative compliance processes.

Historically, each retailer developed its own supplier questionnaires, due diligence workflows, and corrective action requirements. For brands selling to multiple retailers, that often meant providing the same information repeatedly in slightly different formats. Major retailers are increasingly recognizing that standardizing these processes doesn’t diminish their competitive position. Instead, it reduces administrative burden for suppliers, improves data consistency, and gives retailers higher-quality, more comparable information for managing supply chain risk. When data can be shared through a common framework, everyone spends less time on repetitive reporting and more time addressing the issues that actually matter.

Many smaller brands don’t have dedicated compliance teams. How has the current approach to supplier questionnaires, audits, and certifications disproportionately affected SMBs?

Smaller brands feel this most because they don’t have a dedicated compliance function to absorb the work. Large organizations may have specialists managing supplier questionnaires, audits, certifications, and corrective action plans, but many SMBs are trying to meet the same expectations with only a handful of employees.

That’s the gap solutions like One Retail Hub aim to close. Instead of managing a different process for every retailer relationship, a brand completes one shared assessment and reuses its existing documentation wherever it’s needed. It gives smaller brands access to the same standardized process larger organizations use, without requiring them to build an entire compliance function first.

Retailers have historically relied on their own questionnaires and compliance processes. Why is that model becoming increasingly unsustainable for global supply chains?

Every retailer asking suppliers to complete a different questionnaire may have been manageable when due diligence expectations were relatively limited. It becomes much harder when every new regulation requires more evidence, more supplier engagement, and more product-level documentation. Companies end up repeating the same work across multiple systems instead of building on information they’ve already collected.

The challenge is not just the time involved, but the growing cost of compliance. Even large brands are feeling that pressure, while smaller businesses often lack the resources to keep up. The industry needs to make compliance more practical so companies can spend less time managing administrative requirements and more time strengthening their supply chains.

How can the industry reduce the cost of compliance without lowering standards?

The industry can reduce the cost of compliance by reducing duplication, not by lowering standards. Companies shouldn’t have to collect the same evidence five different times simply because five customers ask for it in different ways.

Some manufacturers now spend around 150 hours every month on data collection and reporting, with dedicated staff focused solely on paperwork and traceability. By standardizing how due diligence information is collected and reused, companies can significantly reduce administrative effort while maintaining the same level of transparency and accountability. The goal is not to ask for less information, but to make it much easier to manage and apply across different requirements.

How can better supply chain data help companies do more than just meet compliance requirements?

Once the data exists in one place, verified and structured, compliance becomes the floor, not the ceiling. The same supplier information that proves EUDR or forced labour compliance can also show a brand where its Scope 3 emissions are coming from, which suppliers carry disproportionate risk, and where sourcing decisions can reduce both cost and impact.

We’re seeing brands use that information for real-time visibility rather than year-end reporting. Linking purchase orders to mapped suppliers means a brand knows, the moment an order is placed, exactly which facility will produce it and what that facility’s track record looks like. That’s a sourcing decision made with foresight instead of a compliance report written in hindsight.

The same data also strengthens product claims. If a brand says a garment contains 30 percent recycled material, it should have a verified data trail that supports that claim just as confidently as it would support a regulatory audit.

The long-term goal is for supply chain data to reach the same level of rigor as financial data. Better sourcing decisions, stronger risk management, and more credible product claims are what make it valuable long after the reporting requirement is met.

What needs to happen for compliance to become simpler and less expensive for companies across the supply chain?

The key is moving away from fragmented, retailer-by-retailer compliance and toward shared infrastructure. 

Industry initiatives such as One Retail Hub demonstrate what that can look like by giving brands a standardized way to complete and share HREDD assessments across participating retailers while building on documentation they already have. AI can also help identify, organize, and reuse relevant information, making the process faster and more efficient without changing the underlying requirements.

As more retailers align around common frameworks, compliance becomes much easier to scale, allowing companies to spend more time improving supply chain transparency and strengthening due diligence rather than managing repetitive reporting.

Looking ahead, how do you see supply chain compliance changing over the next few years?

The biggest shift is away from compliance as an annual project. Right now, most teams still treat each regulation as its own sprint: gather evidence, submit it, then move on to the next requirement. Over the next few years, compliance will become much more continuous, with data collected as products move through the supply chain rather than assembled retroactively when a deadline arrives.

The second shift is from fragmented systems toward shared infrastructure. One Retail Hub is an early example of that, with multiple retailers agreeing that a common questionnaire is more effective than maintaining separate versions of the same process. I expect more of the industry to reach the same conclusion, not because collaboration is fashionable, but because the alternative simply doesn’t scale as regulations continue to multiply.

The third shift is that scrutiny will move earlier in the process. The EU Forced Labour Regulation’s latest guidance makes it clear that a company’s existing traceability can influence whether an investigation proceeds before it formally begins. That’s a preview of where the industry is heading more broadly. Companies with structured, retrievable data won’t just report faster. They’ll also be better positioned to demonstrate compliance from the outset.

Taken together, compliance stops being a reactive function and becomes business infrastructure that supports sourcing, risk management, product claims, and broader supply chain decision-making.

port panama trade rate maersk august road compliance port shipping tariff air DHL apple logistics iran supply truck oil economy trade operational rail america port surcharges chatcgp trucking DHL AI dollar fedex iran LTL imo hormuz blockade fedex maersk court maritime strait dollar trade AI fedex port trade maritime shippers rail chassis china lease tariff supply chainreactor cargo maersk global trade MySavant.ai container supply chain container CMA CGM shipping rates port india crude u.s import shipping freight cargo maersk fedex carrier strait of hormuz oil strait grant houthi market logistics food imo images shipping freight

AI in Freight Forwarding: Starboard’s Approach to Smarter Quoting

The freight forwarding industry is full of artificial intelligence demonstrations. The true test is whether the technology can cope with the daily disorder of the quote desk: emails, PDFs, spreadsheets, carrier portals, agent responses, and rates that change before anyone can clean the data. That is where Sumeet Trehan, the founder of Starboard, sees the market heading. His argument is not that AI will eliminate small and mid-sized forwarders. Rather, it is that these forwarders are too crucial to global commerce and too connected to their clients to be pushed aside simply because larger players have superior tools.

Read also: How Artificial Intelligence Is Reshaping Global Supply Chains

Trehan reached this conclusion after a career at Maersk, BCG, and Flexport, where he helped establish the company’s Canadian operations. At Flexport, he said he started to wonder whether digital freight was tackling the right issue. Trehan stated that small and mid-size freight forwarders are indispensable for global trade, and their operational know-how cannot be replicated by a digital freight forwarder. Starboard’s proposal is that local forwarders should maintain the customer relationship and operational expertise, while the platform gives them some of the benefits usually linked to larger rivals: better technology, stronger procurement, and eventually financial infrastructure.

Forwarding remains a business driven by relationships, local presence, and exceptions. The person who knows which carrier office to contact or which route will break down still matters. However, the strain on smaller forwarders is significant. In developed markets, Trehan noted, forwarding has become a low-margin business, often running on net margins of 1-2%. After the freight rate itself, labor is the largest expense. He described this as nearly an existential crisis for many freight forwarders, asking how they can reduce costs, and stressed that it is not a five-year strategic plan but something that needs to be done immediately for many of their customers.

Starboard’s initial product focuses on quoting. In spot-heavy forwarding markets, importers and exporters may send the same request to multiple forwarders at once. A small or mid-sized forwarder might get 20-30 quote requests per day, Trehan said, with each taking one to two hours to prepare. Average response times can extend to 24-48 hours. That delay can cause lost business. The customer wants to know the cost to move cargo from point A to point B, and the forwarder that responds first often has the edge.

Starboard connects to the inbox of a forwarder’s sales or pricing team. When a request for quote arrives, its AI agent reads the request, extracts the cargo and routing details, splits the job into legs, searches contract and spot rates, and can contact agents or co-loaders for missing information. The company says users have cut response times from a day or two to roughly one or two hours in many cases.

Trehan argues the advantage is not just speed. Forwarders often get rates from many sources in different formats. A human might rely on memory, assuming yesterday’s best option is still today’s best option. In volatile markets, that assumption can be costly. He said the goal is not only to quote quickly but also to always quote at the cheapest and best rate available to customers.

The industry’s data problem is long-standing. Freight has spent decades trying to digitize around documents and messages that rarely align neatly between parties. Electronic data interchange may be common, but standardization remains inconsistent. Trehan sees AI as valuable because it can convert messy inputs into structured data that systems can use, without requiring forwarders to replace every legacy system first.

He is also wary of AI hype. Starboard spent over two years working with about 25 design partners in the US and Canada to train its agents on real quoting workflows. He said that while one can show magic in a demo, actually having something that can begin replacing human work takes years of effort. For forwarders evaluating AI, Trehan’s advice is to start with the business problem, not the technology. Faster quote turnaround, better win rates, higher profitability per quote, and less manual work are measurable. A vague AI pilot is not.

Trehan said customers have typically seen air quote response times drop to about an hour and ocean quotes to two or three hours. He also claimed average quoted rates can fall by around 5% when the system finds better options within the forwarder’s own rate sources. Starboard does not name those customers publicly, citing confidentiality agreements. His final advice is to choose the partner carefully. He noted that at this stage the technology is so nascent and early that one needs to invest in the team over the brand or the company. For smaller forwarders, the useful AI story may not be a future where the local operator disappears, but one where the operator responds faster and prices more intelligently.

 

https://www.indexbox.io/blog/ai-in-freight-forwarding-starboards-approach-to-smarter-quoting/

global trade

Why do You Need Expert CargoWise Support and Helpdesk for Your Freight Forwarding Operations?

Freight forwarding has evolved far beyond the simple act of booking shipments and transporting cargo from point of origin to destination. Today’s forwarders must manage real-time visibility, faster documentation, customs compliance, financial accuracy, customer communication, and global supply chain collaboration.

Read also: Freight Shipments Steady in April as Capacity Tightens and Rates Reach Recent Highs

CargoWise is a cloud-based ERP that enables logistics companies to consolidate these activities onto a single platform. However, implementation does not ensure success. Even after going live, many businesses continue to experience manual work, disconnected processes, delayed reports, poor visibility, and low user adoption.

This usually happens because CargoWise requires continuous optimization, proper configuration, user training, integrations, workflow improvements, and expert CargoWise support and helpdesk. Without ongoing support, small system issues can quietly slow daily operations and reduce the value of the ERP investment.

The Growing Complexity of Freight Forwarding Operations

Freight forwarding is no longer limited to transporting shipments from the point of origin to the final destination. Today’s logistics companies are expected to provide operational visibility, faster documentation processing, precise compliance management, and seamless communication between systems and customers.

A single shipment can involve:

  • Multiple transport modes
  • Customs declarations
  • Carrier coordination
  • Warehouse activities
  • Financial transactions
  • Customer updates
  • Regulatory compliance checks

CargoWise centralizes these activities, but freight forwarding workflows are constantly evolving. New customers, trade lanes, branch requirements, compliance rules, and reporting expectations are constantly changing. Without regular system reviews and optimization, teams frequently develop workarounds outside of CargoWise.

Why do CargoWise Support and Helpdesk Matter Beyond Implementation?

Most freight forwarders treat ERP implementation as the final stage of digital transformation. In reality, implementation is only the beginning.

As logistics operations evolve, businesses require continuous system improvements, including:

  • New workflows
  • Customer requirements
  • Compliance updates
  • Integration needs
  • Reporting expectations
  • Automation opportunities

Without expert support, operational gaps gradually begin to appear.

Common issues include:

  • Dependence on spreadsheets outside the system
  • Manual document processing
  • Slow shipment workflows
  • Duplicate data entry
  • Inconsistent reporting
  • Integration failures
  • Delayed operational visibility

Over time, these inefficiencies reduce productivity and increase operational costs.

That is where expert support and a helpdesk are critical for CargoWise users to improve efficiency and businesses to keep the system aligned with actual freight forwarding operations while improving efficiency, visibility, and scalability.

CargoWise Next E2E Implementation: Building the Right Operational Foundation

Many long-term operational problems begin during implementation.

Some implementations focus only on technical setup without fully understanding operational workflows. As a result, system processes may not properly align with day-to-day freight forwarding activities, creating frustration for users immediately after go-live.

An effective CargoWise Next E2E implementation requires a complete understanding of logistics operations before configuring the system.

A strong implementation strategy includes:

  • Business process analysis
  • Department workflow mapping
  • Operational gap identification
  • Finance and compliance planning
  • User role management
  • Multi-branch operational setup
  • Testing and workflow validation

When implemented correctly, CargoWise becomes a scalable operational platform rather than just a shipment processing tool.

CargoWise Configurations: Aligning with Real Operational Workflows

CargoWise is highly configurable, giving logistics businesses flexibility. However, poor configurations can create major operational challenges.

Common configuration-related problems include:

  • Incorrect user access permissions
  • Duplicate workflow steps
  • Poor shipment milestone visibility
  • Reporting inconsistencies
  • Incorrect finance mappings
  • Operational bottlenecks

Proper CargoWise configurations help businesses:

  • Standardize operations
  • Improve workflow accuracy
  • Reduce manual intervention
  • Improve visibility across departments
  • Support operational consistency

Well-configured systems are also easier for employees to adopt and use efficiently.

CargoWise Customizations: Supporting Real Operational Workflows

Every freight forwarding business has unique operational requirements. Standard workflows may not always support specialized processes effectively.

CargoWise customizations help businesses align the system more closely with operational workflows while improving efficiency and automation.

Common customization areas include:

  • Automated shipment status triggers
  • Custom operational validations
  • Tailored customer documentation
  • Specialized reporting structures
  • Department-specific workflow automation

However, excessive customization without long-term planning can create:

  • Upgrade difficulties
  • System maintenance challenges
  • User confusion
  • Process inconsistencies

Expert CargoWise specialists help businesses implement practical customizations that improve efficiency without overcomplicating the system.

CargoWise AI Document Automation: Solving Manual Processing Problems

Document handling remains one of the biggest operational workload areas in freight forwarding. Teams process commercial invoices, bills of lading, packing lists, shipping instructions, customs declarations, and carrier documents daily.

In many businesses, employees still enter document data into CargoWise manually. This results in:

  • Slow processing
  • Data entry errors
  • Increased labor dependency
  • Shipment delays
  • Reduced productivity

AI-powered document automation helps extract data from logistics documents and feed it directly into operational workflows. This improves processing speed, accuracy, scalability, and overall workflow efficiency.

As a result, operations teams can focus more on exception handling and customer service instead of repetitive manual tasks.

CargoWise Integration: Eliminating Disconnected Operations

Modern logistics operations depend on multiple systems working together seamlessly.

Freight forwarders commonly use:

  • Carrier systems
  • Customs platforms
  • CRM software
  • Warehouse systems
  • Accounting applications
  • Shipment visibility platforms

Without integrations, employees often transfer data manually between systems, leading to:

  • Duplicate work
  • Data inconsistencies
  • Delayed updates
  • Communication gaps
  • Increased operational errors

CargoWise integrations using APIs and EDI connections help create connected logistics ecosystems where information flows automatically between platforms.

Benefits include:

  • Real-time operational visibility
  • Reduced manual work
  • Faster communication
  • Better customer experience
  • Improved data consistency

Connected operations become increasingly important as logistics businesses scale globally.

CargoWise BI Dashboards: Turning Data into Business Visibility

Many freight forwarding companies generate reports from their operating systems, but they lack true operational visibility.

Traditional reports are often:

  • Delayed
  • Static
  • Difficult to analyze
  • Spread across multiple spreadsheets

As a result, management teams struggle to identify operational issues quickly.

CargoWise BI dashboards convert operational data into real-time business insights. These dashboards help businesses monitor shipment volumes, profitability, branch performance, operational KPIs, revenue trends, and delayed shipments more effectively.

This enables faster decision-making and better operational control across the organization.

CargoWise Training: The Most Overlooked Success Factor

One of the most common reasons ERP systems fail to deliver full value is poor user adoption.

Many businesses invest heavily in technology but provide limited operational training to employees. As a result, users avoid workflows, rely on shortcuts, enter inconsistent data, and reduce overall operational visibility.

CargoWise training should go beyond basic system navigation. It should focus on:

  • Department-specific workflows
  • Operational best practices
  • Real shipment scenarios
  • Finance processes
  • Reporting procedures
  • Exception handling

When users understand the system properly, businesses achieve:

  • Faster operations
  • Better data quality
  • Improved compliance
  • Higher productivity

Continuous training is essential as operational requirements evolve over time.

Benefits of Expert CargoWise Support and Helpdesk

Expert CargoWise support and helpdesk services help freight forwarding businesses improve operational efficiency, reduce disruptions, and maximize the value of their logistics ERP environment.

With the right CargoWise support strategy, businesses can achieve both operational efficiency and long-term scalability.

Key benefits include:

  • Faster issue resolution
  • Reduced manual work
  • Better operational visibility
  • Improved data accuracy
  • Better user adoption
  • Improved integration management
  • Enhanced customer service
  • Scalability for business growth
  • Higher ROI from CargoWise
  • Reduced operational risks
  • Continuous operational improvement

In today’s fast-moving logistics industry, simply having CargoWise is not enough. Businesses must continuously optimize, support, and align the system with real operational workflows to achieve maximum value.

Conclusion

CargoWise has become one of the most important operational platforms in freight forwarding. However, its true value is achieved only when it is continuously optimized and aligned with business operations.

Implementation alone is not enough. Freight forwarding businesses need proper configurations, workflow optimization, AI document automation, real-time integrations, BI dashboards, user training, and continuous support.

Expert CargoWise support and helpdesk services help freight forwarders improve efficiency, reduce manual work, enhance visibility, and build scalable logistics operations for long-term growth.

With the right expert support and continuous optimization, CargoWise can become a powerful foundation for scalable, efficient, and future-ready freight forwarding operations.

Author Bio

With 5+ years of experience creating content for the logistics and supply chain industries, I specialize in turning complex topics into clear, engaging blogs, articles, and case studies. My work enables businesses to enhance visibility, build trust, and effectively address industry challenges.

u.s shipping global trade shipment GTM tariffs tariff freight forwarding container circle logistics forwarder

Global Logistics Surge: International Freight Forwarding Market Set to Surpass USD 167.2 Billion by 2032

In today’s increasingly interconnected world, international trade continues to be the backbone of global economic growth. As globalization deepens and supply chains become more complex, the role of international freight forwarding has become more critical than ever before. According to industry projections, the International Freight Forwarding Market is expected to surpass USD 167.2 billion by 2032, driven by robust global trade, advancements in digital logistics platforms, and the rapid growth of e-commerce.

Read also: Digital Freight Platforms: Revolutionizing Global Shipping Operations

This significant expansion not only reflects the market’s resilience but also highlights the evolving nature of freight logistics in a post-pandemic world.

Understanding Freight Forwarding

International freight forwarding refers to the coordination and shipment of goods across international borders on behalf of importers and exporters. Freight forwarders act as intermediaries between shippers and transportation services, managing the entire logistics chain—from documentation and customs clearance to warehousing, insurance, and multimodal transport arrangements.

They ensure that cargo reaches its destination efficiently, cost-effectively, and in compliance with international trade regulations.

Key Drivers of Market Growth

1. Boom in Global Trade Activities

The backbone of freight forwarding lies in global trade. As more countries expand trade agreements and remove barriers to international commerce, the demand for sophisticated freight forwarding services has skyrocketed. Emerging markets in Asia-Pacific, Africa, and Latin America are playing a crucial role in this expansion, with increased import-export activities fueling logistics needs.

2. Rise of E-Commerce and Cross-Border Shopping

E-commerce giants like Amazon, Alibaba, and Shopify have transformed consumer behavior and supply chain expectations. As cross-border shopping becomes commonplace, the need for time-sensitive, reliable freight forwarding services has increased significantly. Freight forwarders are increasingly adopting digital tracking, AI-based route optimization, and inventory visibility tools to handle high volumes with greater accuracy.

3. Technological Advancements and Digitalization

The integration of advanced technologies such as blockchain, IoT, AI, and cloud computing is revolutionizing the freight forwarding industry. These tools offer enhanced transparency, real-time cargo tracking, and automated documentation processes. Digital freight platforms are also emerging, allowing shippers to compare prices, book shipments, and monitor deliveries from a single dashboard—improving efficiency across the board.

4. Growth in Intermodal and Multimodal Transportation

With globalization encouraging long-distance supply chains, freight forwarders are focusing on intermodal (road, rail, sea, and air) and multimodal solutions to reduce costs and improve reliability. These integrated transport methods are essential in reducing lead times and ensuring seamless movement across diverse geographies.

5. Increased Focus on Supply Chain Resilience

The COVID-19 pandemic exposed vulnerabilities in global supply chains, making businesses more aware of the importance of resilience, flexibility, and contingency planning. Freight forwarders are now seen as strategic partners in building more agile supply chains capable of adapting to disruptions, such as geopolitical tensions, climate change, and natural disasters.

Regional Insights

1. Asia-Pacific Dominates the Market

The Asia-Pacific region, led by China, India, and Southeast Asia, is expected to dominate the freight forwarding market during the forecast period. Rapid industrialization, infrastructure development, and booming manufacturing exports make this region a global trade powerhouse.

2. North America and Europe Remain Vital Players

The North American market, particularly the U.S., is witnessing robust demand due to high-tech manufacturing and advanced logistics infrastructure. Europe, on the other hand, is focusing on sustainable freight solutions, with a strong push toward eco-friendly transportation and digital transformation.

3. Emerging Markets Fueling Expansion

Countries in Africa and Latin America are also witnessing increased activity, driven by improvements in trade infrastructure, foreign direct investments, and logistics corridor development projects. These regions offer untapped potential for freight forwarders aiming to expand their footprint.

Key Challenges in the Industry

Despite optimistic growth projections, the international freight forwarding industry faces several challenges:

  • Supply Chain Disruptions: Ongoing geopolitical conflicts, pandemics, and natural disasters continue to disrupt traditional shipping routes.
  • Environmental Regulations: There is increasing pressure to reduce carbon emissions, which may require expensive changes in operations.
  • Talent Shortages: The logistics sector is grappling with a lack of skilled professionals, especially in emerging technologies.
  • Cybersecurity Risks: As digital platforms become prevalent, the risk of cyberattacks on sensitive shipment and trade data is also growing.

Market Players and Strategic Moves

Key players in the international freight forwarding market include DHL Global Forwarding, Kuehne + Nagel, DB Schenker, DSV Panalpina, and Expeditors International, among others. These companies are leveraging mergers, acquisitions, and strategic alliances to enhance global reach and integrate new technologies.

For instance, DHL is investing heavily in digitalization and green logistics, while Kuehne + Nagel continues to expand its footprint through acquisition of regional players in Asia and Latin America.

The Road Ahead: Trends to Watch

1. Sustainability in Freight Logistics

More freight forwarders are adopting eco-friendly practices, including electric delivery vehicles, route optimization to reduce fuel usage, and carbon-neutral shipping solutions.

2. Blockchain for Secure Documentation

Blockchain is gaining traction for streamlining and securing trade documentation, reducing fraud, and enhancing transparency.

3. AI-Powered Predictive Analytics

Advanced data analytics are being used to predict delays, optimize routes, and manage inventory in real time—giving shippers greater control and foresight.

4. Increased Nearshoring and Regionalization

Companies are diversifying supply chains by moving production closer to end markets. This shift will impact freight flows and require regional logistics strategies.

Conclusion

The international freight forwarding industry is at a transformative juncture. With the market poised to exceed USD 167.2 billion by 2032, players in the sector must harness the power of technology, enhance service capabilities, and remain agile in an ever-evolving trade environment.

As global commerce accelerates and consumer expectations rise, freight forwarders will continue to play a pivotal role in keeping the world connected—driving economic growth and enabling seamless international trade in the decades to come.

Source: https://www.gminsights.com/industry-analysis/international-freight-forwarding-market 

tradebeyond global trade supply chain council

Building Resilient Supply Chains through Collaboration and Digital Connections

Collaboration and communication are increasingly important for effective continuity planning and business development in a complex and uncertain global supply chain operating environment.

Read also: Building a Resilient Supply Chain with Advanced Predictive Analytics

Forwarders and their business partners must maintain clear lines of communication and always-on access to information about disruptive events to quickly manage exceptions, whether weather-related, geopolitical, or other events.

When supply chain and logistics service companies have an effective, secure way to communicate and integrate with business partners and industry trading contacts, they enable greater supply chain resiliency, flexibility, and safety.

Timely digital communication and collaboration enable partners to a shipment to be proactive in researching disruptive events, determining their impact, and exploring alternative solutions. Supply chain and logistics options, such as alternate routes, backup storage facilities, port gateways, or transportation modes must be evaluated quickly to maintain production schedules and meet customer expectations.

Plus, when expanding into new markets, a secure, globally connected network offers access to new business partners, such as agents, that have local and regional knowledge and experience and the boots on the ground to facilitate reliable freight movements.

By being part of a collaborative industry network that securely connects to global shipping industry participants 24/7, an organization’s supply chain and logistics network can quickly address disruptions and seize business opportunities to successfully address unique market and infrastructure conditions.

Uniting businesses in commerce

Through a cloud-based global network, a worldwide community of users can quickly access logistics and market updates and build trusted business relationships with trading partners across the globe to improve visibility, predictability, and control. 

For example, Magaya, a logistics and supply chain automation software provider, connects forwarders and logistics service providers and their agents across the globe with the Magaya Network.

The Magaya Network facilitates timely, direct peer-to-peer dialogue when supply chain disruptions are occurring and facilitates reliable origin-to-destination data flows. Information can be exchanged faster, more securely, and more accurately when sent electronically in the cloud.

Shipping documentation can be electronically exchanged, enabling transactional information to be completed and flow smoothly and accurately from end-to-end. Participants can immediately transfer all necessary shipment and customs documents electronically allowing for faster freight clearance, eliminating the errors that occur with manual data entry, and, ultimately, lowering costs.

Secure connections

With the constant risk of scams, spam, and cyber-attacks, electronic transmission of shipment documentation via a secure network is an essential capability for today’s global shipping participants. Networked communication has encrypted data and uses authentication to verify a user’s credibility. It is much more secure than email, which is known for its risk of data breaches and can easily fall into the wrong hands.

Additionally, as part of a global network, trading partners can rely on an outside firm like Magaya for its established cybersecurity protocols and ongoing security updates. This alleviates the burden on businesses to manage this critically important aspect of their business.

Collaboration and communication are indispensable enablers for today’s global supply chains. Navigating today’s uncertainty, disruptive events, and evolving market dynamics underscores the importance of seamless connectivity. Through fostering robust partnerships and embracing digital networks, companies can fortify their supply chains and logistics networks against disruptions while seizing new opportunities. Digitized communication platforms like the Magaya Network provide secure communication and reliable data exchanges to support resilient, efficient supply chains.

us freight forwarders global trade

Essential Guidelines for US Freight Forwarders

In a bid to clarify export compliance responsibilities, the Bureau of Industry and Security (BIS) has recently issued comprehensive guidance tailored for freight forwarders engaged in international trade. This directive underscores the critical importance of adhering to legal frameworks and mitigating risks inherent in export operations.

Read also: Robots Paying the Bills For Freight Forwarders

The released guidance serves as a beacon of clarity, delineating the precise roles and obligations of freight forwarders within the export process. By eliminating ambiguity, it empowers forwarders to establish efficient protocols, potentially reducing errors and operational bottlenecks.

Key among the benefits of this guidance is the establishment of clear expectations, enabling forwarders to develop streamlined procedures for managing export transactions. Enhanced communication and documentation practices are poised to further bolster operational efficiency, particularly in Electronic Export Information (EEI) filings.

Yet, with these benefits come challenges. The emphasis on export security places forwarders under increased scrutiny, necessitating stringent adherence to compliance standards. This heightened focus underscores the imperative for forwarders to shoulder a degree of strict liability, particularly concerning the accuracy of EEI filings.

Central to the guidance is the delineation of freight forwarders’ responsibilities, which include obtaining clear instructions from exporters, understanding pertinent regulations, ensuring accuracy in EEI filings, and maintaining stringent security and compliance measures.

Through measures such as securing Shipper’s Letter of Instruction (SLI) or Power of Attorney (POA) from exporters, forwarders can ensure clarity regarding their role and obligations in the export process. Familiarity with regulations outlined in the Export Administration Regulations (EAR) and other federal mandates is paramount to navigating compliance complexities.

Crucially, forwarders must prioritize accuracy and timeliness in EEI filings, whether conducted by the exporter or themselves. Vigilance for red flags, such as boycott language, and alignment with license requirements are imperative to safeguarding compliance integrity.

By adhering to these guidelines, US freight forwarders can navigate the intricacies of export compliance with confidence, contributing to a secure and responsible global trade landscape.

logistics

Arrive Logistics Elevates Carrier Connectivity and Visibility with Descartes Freight Tracking Solution

Descartes Systems Group, a global leader in uniting logistics-focused businesses in commerce, has revealed that Arrive Logistics, an Austin-based multimodal transportation and technology company, is harnessing the power of Descartes MacroPoint™ to offer real-time visibility of freight movements across its extensive national network to its shipper customers. Through the integration of advanced automation in their freight tracking processes and industry-leading carrier compliance, this collaboration empowers Arrive Logistics to enhance its services to shippers and carriers alike.

In recognition of its commitment to tracking compliance across a substantial volume of freight, Arrive Logistics has recently been honored as a Top Carrier for 2023 by Descartes MacroPoint. This prestigious award is granted to carriers that consistently meet and uphold high standards of tracking compliance, a distinction earned by fewer than 1% of the carriers within the Descartes MacroPoint network. The implementation of automated tracking has enabled Arrive Logistics to achieve a higher level of performance and reduce transportation disruptions, further establishing the company as an increasingly valuable partner for its 6,000+ shippers and 70,000+ carriers.

J-Ann Tio, Chief Strategy Officer at Arrive Logistics, emphasized the company’s dedication to delivering exceptional service and value to their transportation partners. She stated, “Whether it’s enhancing connectivity or optimizing our relationships, we prioritize simplicity to make it as effortless as possible for our partners to collaborate with us. Partnering with the right technology solutions to complement our ARRIVEnow™ platform has been instrumental in helping Arrive Logistics secure 11 national service awards this year alone.”

Descartes MacroPoint is a versatile visibility platform designed to assist freight brokers, third-party logistics companies (3PLs), and shippers in gaining enhanced visibility into their freight operations and shipments. Carriers can seamlessly integrate with the solution through GPS-based electronic logging devices (ELDs), transportation management systems (TMS), or mobile app-based tracking methods. The platform empowers companies to exercise greater control over their supply chain, providing them with more efficient and high-quality data to enhance communication and decision-making. By leveraging Descartes MacroPoint, organizations can improve customer service, optimize distribution efficiency, foster better collaboration with customers, suppliers, and carriers, and minimize the repercussions of disruptions and late delivery penalties.

Dan Cicerchi, VP and General Manager of Transportation Management at Descartes, expressed his satisfaction with Arrive Logistics’ successful implementation of high-impact automation for carrier connectivity and freight tracking using their solution. He said, “By connecting to one of the most extensive global networks of carriers in the industry, brokerages, and their shipper customers gain real-time access to reliable and comprehensive freight tracking data. This empowers them to predict outcomes, manage exceptions, minimize costs, and support growth as they expand their operations.”

In conclusion, Arrive Logistics is driving innovation and efficiency in the world of logistics and freight tracking, and their partnership with Descartes MacroPoint is a testament to their commitment to delivering exceptional service to their partners in the transportation industry.

NaVCIS section 321 freight-forwarders shippers carrier newtrul technology port ship4wd lane

Freight Companies are not Expecting a Robust Peak Shipping Season Come Fall 2023

For cargo carriers, the last quarter of the year is typically the strongest. Yet, the last quarter of 2022 was anything but with overstocked retailers canceling orders and carriers dialing back freight volume expectations. In early 2022 tight capacity and increasing shipping prices yielded significant profits to the larger logistics and transport sector. But consumer spending ended up shifting to services and retailers have been left with excess inventories. 

This year, Switzerland-based Kuehne + Nagel International is not expecting a rosier panorama. Freight operators are already preparing for a weak shipping season come fall. Fall is usually the season when companies begin pushing goods through supply chains in preparation for the end-of-year holidays. Kuehne + Nagel operates ocean container lines, airfreight companies, as well as middlemen. In a good year, the midsummer surge is a revenue driver with manufacturers and retailers prepping for back-to-school and the previously mentioned end-of-year. So far this year large merchants have continued to cut back excess inventories and this does not appear to be letting up. 

Compared with the second quarter of 2022, Kuehne + Nagel’s net turnover plummeted by 43% over the same period. A decline in airfreight and ocean demand cut profits by more than half and Kuehne + Nagel unit costs were slashed from the first to second quarter by 14%. A rival to Kuehne + Nagel, DSV A/S, is in a similar predicament with their air and sea division having posted significantly lower volumes compared to a year ago. They have reduced their full-time workforce by 1,900 during the first quarter of this year and logistics employment overall continues to be trimmed. 

The Logistics Managers’ Index, established in 2016, tracks logistics metrics (inventory, warehousing, and transportation) coupled with the responses of 100 + professionals on the direction and movement of key logistics metrics. They then release a corresponding monthly report and June 2023 marked the lowest point in the history (6.5 years) of the index.

While ocean shipping volumes remain suppressed for DVS and others, if consumer demand improves airfreight could pick up. The DVS earnings outlook had improved slightly as significant worsening is not expected. But all of this does not bode well for 2023. 

 

NaVCIS section 321 freight-forwarders shippers carrier newtrul technology port ship4wd lane

Ship4wd Changes Freight Industry Standards for SMBs with New $10,000 Instant Credit Line, Ability to Pay for Shipments 90 Days After Arrival, Secure Online Checkouts

Small and medium-sized enterprises receive unprecedented access to instant $10,000 credit lines* and in-platform secure online payment options offering credit card and online bank transfers (ACH Debit) with the ability to pay up to 90 days from the cargo delivery date

Ship4wd, a leading global digital freight forwarding solution platform, today announced an industry first-of-its-kind financial services offering with the debut of three new financing and payment features, addressing one of the most prominent issues small and medium-sized businesses (SMBs) importers and exporters are facing today—cash flow management, a challenge often considered the glass ceiling for growth to many SMBs. As economic headwinds continue to surge, SMBs continue to battle significant financial friction that poses a roadblock to their growth and long-term sustainability. With its new financing solutions, Ship4wd is the first and only digital freight forwarder to create a comprehensive online financial solution specifically designed to combat decades of disparities in the sector. 

With this announcement, Ship4wd becomes the first and only freight forwarder that will grant SMB importers and exporters an instant $10,000 USD credit line*. Furthermore, the company has launched a ‘buy now, pay later’ offer that enables SMBs to pay for shipments up to 90 days after delivery. Combined, these financial offerings provide unprecedented and much-needed cash flow relief for SMBs that are typically required to prepay for global shipments, tying up much-needed finances for extended periods of time. Additionally, to make payments easy, Ship4wd new offering will enable online digital checkouts that provide business owners the ability to pay with a credit card or direct debit (ACH debit) similar to any other online purchase—a significant shift for an industry otherwise heavily reliant on a paper trail of documentation. 

Ship4wd ensures its customers—no matter their size—receive a timely, cost-accurate, and properly documented journey for all general cargo categories. The new services are in partnership with 40Seas, a best-in-class financial services platform built to bring B2B payments and cross-border trade financing into the digital era, and include a series of new offerings, such as:

  • Financing for Small and Mid-sized Businesses—Instant $10,000 USD Credit Lines*: Ship4wd is enabling small and mid-sized businesses- which typically face being underbanked or unbanked- greater opportunity to compete and thrive amidst today’s economic climate as the first freight forwarder offering instant $10,000 credit lines* – subject to meeting eligibility conditions- for those who register on the global shipping platform. Ship4wd recognizes access to credit is often a lifeline for business owners to grow—allowing them to order more inventory, invest in marketing, enhance customer service, or allocate funds to other aspects of their operations—which is why the company has introduced this credit line* financing service in hopes of revolutionizing and sparking a movement across the industry. Ship4wd is changing industry standards not only by granting instant access to a credit line* upon registration but also with no pre-payments, no collateral, and no guarantee required from the business. Business owners will also be able to request additional credit. 

 

  • ‘Buy Now, Pay Later’—Flexibility of Paying Up to 90 days From Delivery Date: Ship4wd has launched a freight forwarding financial solution called ‘Buy Now, Pay Later’ that allows companies the flexibility of paying up to 90 days from the delivery date, turning the tide on an antiquated prepayment model. Among the most prominent problems small and mid-sized businesses face when importing or exporting goods is managing cash flow—an issue that intensifies due to commonly held international shipping standards that require SMBs to pay before their cargo even sets sail. SMBs who take advantage of Ship4wd’s ‘Buy Now, Pay Later,’ feature will be rewarded with a competitive edge against those who continue to prescribe to outdated practices or a “this is how I’ve always done things” mentality.

 

  • Secure Online Payments and Checkout—Simple Credit Card Payments and Online Bank Transfers (e.g. ACH Debit) for All Shipments: Customers can now access the majority of banks across the U.S. and Canada or leverage all major credit cards to complete their transactions through Ship4wd’s platform. This digitization marks a significant shift in the shipping and logistics industry that has traditionally required business owners to utilize paper checks and outside banking vendors. Through Ship4wd’s secure online payments and checkout, business owners can pay with credit card, direct debit (ACH debit), or online bank transfers for each of their shipments. 

A part of ZIM Integrated Shipping Services Ltd. (NYSE: ZIM), Ship4wd provides enhanced solutions through a full-service dashboard so business owners can make more informed decisions; time savings with quicker turnaround of guaranteed price quotes, comparisons, and bookings; and 24/7 one-click access to live expert support and industry insiders throughout the entire process. 

For more information, please visit www.ship4wd.com. 

freight

How Is Digital Freight Forwarding Transforming the Industry?

The freight industry has been forced to evolve, particularly as consumer spending habits have shifted in recent decades. Thanks to the internet, people can buy things from across the world and receive them quickly. That’s even more likely to happen with the use of digital freight forwarding platforms from industry professionals. Learn more about what digital freight forwarding is and how it has impacted the industry so far.

What Is Digital Freight Forwarding?

Digital freight forwarding involves using apps, databases, web platforms and similar tools to facilitate the movement, import and export of clients’ goods. It can include tracking shipments, improving communications between relevant parties, maintaining a paperless system for signing and keeping documents, coordinating steps and services between companies and more. 

This method brings numerous advantages, including more efficient, highly accurate shipments. Those outcomes can help companies increase competitiveness and react more decisively to challenging circumstances. 

However, it takes time and money to implement digital freight forwarding well. That’s why this approach is becoming more widespread but still hasn’t been adopted by all companies in the industry. Plus, people need time to adapt to most changes, so decision-makers may not see the expected benefits immediately. Those realities aside, digital freight forwarding makes good business sense for many of the organizations utilizing it. 

What is digital freight forwarding in a long-term sense? Many experts see it as the future and something decision-makers must pursue to keep up with peers. 

Promoting Better Productivity

Freight forwarders have detail-oriented jobs and they frequently deal with factors that are not wholly within their control. That reality requires these professionals to be excellent problem-solvers and remain flexible in uncertain situations. However, using a digital freight forwarding platform can reduce the number of issues cropping up in a given day. 

A 2023 survey found that focusing on digitalizing specific processes could have notable benefits. The best outcomes came when people used online marketplaces to source partners and equipment, live chat features to negotiate terms and conditions and container-tracking features to get live estimated arrival times. Together, those resources allowed people to save four working days per month or more than eight hours every week. 

Another takeaway was that online marketplaces allow freight forwarders to find partners in only 5-10 minutes. That means they save 170 minutes per new partner compared to those not using digital tools. 

Manual payments represent significant time spent, too. A third of people responding to the survey said each transaction takes approximately 10 minutes. Another 20% of those polled expressed frustrations while following up with people regarding manual payments. However, digital tools can speed up all aspects of the process, whether finalizing a transaction or providing an easily accessible record of everything that has happened. 

What is digital freight forwarding doing for companies’ employment needs? When organizations use modern platforms well, they may find they can complete the same duties with fewer people. That’s especially helpful when the workload ramps up and a company cannot feasibly hire more team members right away. 

Offering Better Visibility

A digital freight forwarding platform also makes it easier for people to see precisely where individual shipments are within the supply chain. Such insights give freight leaders more confidence because they can provide customers with the service they want and expect. 

In one case, a partnership between FourKites and Spotos brought predicted estimated arrival times and real-time location information to European customers. Since the content spanned shipments on the move or once they reached a stop, clients could get the details throughout the whole transit route. 

The platform also includes temperature-tracking data for perishable goods, such as medicines and produce. When people can get assurances that those products will arrive safely at their destinations in sellable condition, they’ll protect the bottom line and avoid preventable waste. 

When someone achieves improved visibility by using a digital freight forwarding platform, they can also prevent issues like fraud that could otherwise derail their business if undetected. Scammers pull off one of the most common forms of freight fraud by posing as legitimate entities. In other cases, they target specific professionals and pretend to be them, often taking over their phone lines and email addresses to do so. These criminals typically disappear as soon as they secure payment from victims. 

No single technology can prevent fraud. However, some can go a long way in thwarting it. For example, freight forwarders are working with technology companies to build blockchain tools. Those products provide an unalterable record of items and everyone associated with them. Brands dealing with luxury or in-demand offerings also use the blockchain to prove a product’s authenticity. 

Enhancing Operations

Professionals in this industry must think on their feet and track numerous trends to keep their businesses successful. The great thing about using a freight forwarding platform is that it helps people stay organized and responsive by giving them the reliable information they need. 

For example, staying on top of changes in freight forwarding indexes helps people understand how much it may cost to ship or buy specific goods. Labor disputes and inclement weather are two of the many factors that have caused recent pricing shifts. However, when people have real-time tools to track those changes, they’ll know the right times to find shipping partners and get goods moving. 

The digital documentation provided by many modern tools is also a significant money-saver. Estimates suggest electronic bills of lading could cause a $6.5 billion reduction in direct costs while facilitating up to $40 billion in global trade. Despite those benefits, many companies still use paper-based recordkeeping. That’s problematic for many reasons, including the fact that paperwork could get lost or damaged. 

What is digital freight forwarding doing to support better communications? Today’s platforms allow people to see a shipment’s real-time location through dedicated apps. Then, there’s no need to spend time writing an email or waiting on hold during a phone call to get the latest details. 

A new digital offering from DHL allows customers to only receive alerts about the events most important to them. They can also get those notifications as a daily digest rather than in real time. These options mean it’s easier for people to get the necessary information without getting distracted. They’ll streamline their operations as a result. 

Using a Digital Freight Forwarding Platform Is Good for Business

There are many reasons why people should strongly consider adopting a digital freight forwarding platform sooner than later. Doing so can help them get accurate information about shipments while avoiding slowdowns, cost increases and other unwanted events.