Status quo of digital freight forwarders and flexport locations
As global freight forwarders face problems such as falling freight rates, rising interest rates, and geopolitical instability, they may forgive them for withdrawing their technology investment in 2023. But this conclusion is far from the truth.
In a survey of 100 logistics companies conducted in the fourth quarter of 2002, each company said they had increased their technology spending since the pandemic. As for where the freight forwarder plans to invest, they listed a long list of technical priorities, from freight visibility to pricing and quotation optimization, automated operation, freight visibility, and analysis.
At first glance, these results seem counterintuitive. The headlines were full of technical layoffs, falling freight rates, and widespread doom and gloom. The Freightos Baltic Index, a measure of global shipping pricing, reached a peak of $2021,4 in September 2011. One year later, it fell to $8622022, from $246,80 at the end of two years, down<>% in five quarters.
We have seen some basic drivers that lead freight forwarders to go against the trend and keep their innovation engines running. First, the need for visibility is paramount. The chaos caused by the pandemic proved that the old business mode of manually tracking each batch of goods by freight forwarders was fundamentally broken. Digital priority freight forwarders and pure visibility providers have changed shippers' expectations. Many freight forwarders are catching up with the rapid change expected by customers.
Factors affecting freight forwarder flexport locations Freight transportation
In international freight transport, one of the most concerning issues is the price of freight transport. The cost is directly related to the cost of transportation. Because many exporters do not understand the price of transportation very much, and often have a lot of extra spending, then today to understand the factors of the price of international freight transportation?
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The transportation prices are different for different flexport locations
In the general international trade process, the price of transport according to different modes of transport, price is also different. International freight rates are divided into sea freight, air freight and rail freight.
The specific flexport locations freight rate can also be subdivided. For example, rail freight can be divided into passenger freight and freight. Shipping rates are also divided into tramp rates and liner rates. Tramp rates are also affected by market supply and demand relations at that time, while liner transport costs are relatively fixed. Airfreight can be divided into general goods, designated goods and special goods, and the specific transportation price is also determined according to the weight of transportation, at the same time, even if the volume is small, the weight is also counted by weight, but if the opposite is large, small weight, also according to the specific volume to calculate.
The choice of international logistics, the quality of logistics will affect the seller's store score, but also affect customer satisfaction rate.
Logistics advantages of the flexport locations in the destination country and region
In Eastern Europe, DHL has advantages in Romania, Bulgaria, Moldova, Hungary and other places while EMS has advantages in Greece, Russia, Turkey and other places. Western Europe, Northern Europe, southern Europe can use DHL international express, TNT international express, these two kinds of customs clearance capacity. TNT has a clear advantage in the Netherlands and Belgium.
For Canada, the United States and other American countries, FedEx, UPS and DHL are all suitable for their strong customs clearance capacity and fast time.
Applicable to Asia, South Korea, Japan, Thailand and other Southeast Asian countries DHL, FedEx. DHL and FedEx are time-saving, but THE price of DHL is higher. Indonesia also suggests USING DHL because it has a stronger customs clearance capacity.
In Oceania, DHL and UPS aging fast, with high prices; TNT and FedEx have lower prices but relatively few outlets. Particular attention should be paid to the "Made in China" label on the packaging of Australian products.
Middle East express ARAMEX, EMS for Middle East region. Commercial express in Africa is very expensive. In remote areas, IT is suggested to send EMS international express. EMS countries have the strongest customs clearance capacity. The air express flexport locations can reach many countries and regions that commercial express and postal express cannot reach, so the wide range of flexport locations transportation is its advantage.
Factors affecting the shipping price of flexport locations
In the process of international transportation, there are many factors affecting the price of transportation, in addition to some fuel and labor costs, there are many important factors. For example, the nature of the flexport locations, its own value and packaging form, as well as stowage factor and transporter's requirements for transportation, etc. There will be some fixed costs during the use of the ship, such as the ship's maintenance insurance and fuel consumption. There is also the change of supply and demand in the flexport locations market. In the transport off-season, transport prices are relatively low, in the transport of the peak season, transport prices will be relatively high.
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