The freight forwarding industry is facing several challenges in 2024, including a global economic slowdown, higher fuel costs, some capacity constraints and rising geopolitical tensions.
While these factors contribute to reduced demand over lofty pandemic-era levels, the air cargo and freight forwarding industries will find areas of opportunity to continue their success.
As the global economy slows, the demand for air cargo continues to normalize. Increased fuel costs are expected to remain high in 2024, which could lead to higher shipping rates for air cargo shipments.
Flights from countries heavily impacted by COVID-19 are beginning to resume. Still, those between Asia, the United States and Europe cannot overfly Russia due to the war in Ukraine and other geopolitical tensions, which are increasing costs.
Freight forwarders can address these challenges by investing in new technologies to improve efficiency and reduce costs. For example, AI, now in its nascent stages, is beginning to integrate into operational tasks routinely performed within freight forwarding offices. We expect this automation to be especially useful in data analytics, which improves shipment visibility, customs functions and freight tracking.
The growing focus on supply chain decarbonization may significantly impact the air cargo industry next year. Cargo owners are increasingly looking for ways to reduce their environmental impact, and air cargo is one of the most carbon-intensive modes of transportation.
In response, our industry will continue to promote sustainability and reduce its environmental impact throughout 2024.
As our airline partners are beginning to use sustainable aviation fuel, forwarders are finding ways to reduce waste and provide information to customers through carbon calculators that assess shipment carbon footprints so that they can make informed decisions in their sustainability programs.
Regardless of the challenges ahead, freight forwarders will continue to provide flexible solutions to the most complex logistical challenges by giving clients useful information and services to help them succeed in 2024.