This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook. Creatively responding to change has always been the foundation of the freight forwarding industry, so we view today’s reduced volume challenge as an opportunity. Forwarders provide solutions to complex logistical problems using a variety of transportation modes, and Airforwarders Association members look forward to assisting shippers with transportation solutions adhering to all budgets and requirements. In addition to overnight shipping, many will be offering more economical deferred air cargo to retain tonnage and, in some cases, other options that may not include air freight. Regardless of the current softening seen throughout 2019, a recent survey of Airforwarders members indicates increased positivity for 2020. This optimism comes from the e-commerce megatrend continuing its significant impact on the air cargo industry as the need for faster delivery continues to grow. Also, there is the hope of the United States reaching a trade deal with China and more favorable global economic conditions prevailing during the upcoming year. US forwarders remain concerned about increasing airport truck congestion, poor road infrastructure, the impending excessive governmental regulation, the upcoming maritime low-sulfur fuel requirement, anticipated changes to US export regulations, and lithium batteries (dangerous goods) shipped by companies not adhering to existing laws and manufacturing standards. But despite industry and global economic concerns, freight forwarders are seeing more customer demand for faster order processing and vendor flexibility. Both continue to be the primary deliverables within our business. As a result, our members are increasingly investing in significant financial resources in technology development to provide more efficient customer experience and increased information transparency. Our country has seen nine straight years of economic expansion since the Great Recession, and freight forwarders have benefited as a result of this prosperity. Now, as the economy begins to shift, we look forward to thriving on its changes and continuing our industry success.
Brandon Fried