Logistics in 2020 The Future of Air - Sea Freight - BluJay Solutions

Logistics in 2020: The Future of Air & Sea Freight. Globalization has meant that air and sea freight play a major role in getting consumer goods on the shelves in stores (online and virtual). Yet both modalities are hard-hit by the sudden changes in volumes created by lower or higher than expected levels of consumer demand that became common following the downturn and look set to continue into the uncertain future. In a recent white paper, Kewill has looked at the issues facing the global supply chain, especially logistics services providers and freight forwarders, and how it may look in 2020, including the future picture for air and sea freight. The key future issues on the agenda for freight forwarders are summarized below: China will be the largest trade nation, having overtaken the U.S. as the world’s largest trading nation by 2016, (according to a 2012 forecast HSBC Holdings Plc). Chinese ports and hub-and-spoke networks are of primary importance to global freight forwarders, and shipping schedules are developed around them. China has by now significantly harmonized its customs rules, which previously varied by port, whilst new trade powers including China are investing heavily in infrastructure to move products from inland manufacturing sites to the ports. Improved supply chain links with emerging economies in Latin America, the Middle East and Africa are on the agenda as China leverages its alliances with those regions and increases imports from its trading partners to support its own infrastructure projects. LSPs have begun to gear up for increases in future shipment volumes going the other way. Rising costs are forcing Chinese companies to outsource some low skilled and labour intensive production to lower cost countries. Near shore and on-shoring is once again becoming more popular in some Western countries. This is largely for speed to market, agility to react to consumer demands and because the economic downturn combined with the rapid development of China is making it cost justifiable (if not cheaper). Read the complete white paper for more information. Subscribe to our blog to receive the full blog series via email and stay informed about the latest global logistics news and insight. Download Kewill’s white paper Logistics in 2020: The Future is Closer than you Think to read Kewill’s analysis of the key current and future issues affecting the global logistics industry, and predictions for key future trends. Subscribe to our Logistics Newsletter to receive regular industry updates Visit our website to stay up to date on industry software tools such as Freight Forwarding (Software), Logistics (Software), Supply Chain (software), Transport Management (Software), Warehousing Management (Software)