How to succeed as a freight forwarder in 2024

How to succeed as a freight forwarder in 2024

As integral supply chain intermediaries, freight forwarders stand at the epicenter of global supply chains, prone to sudden, unexpected changes often. In the freight game, sustainable growth rests on keeping pace with emerging developments across technology, regulations, consumer trends and competitive forces. It’s what separates the agile from the fragile.

Blockchain, automation, and sustainability are shaking up the bedrock of global supply chains. Coupled with the ripple effects of black swan events like the Suez Canal obstruction, freight forwarders occupy an invaluable yet unenviable role as the seismographs of the global supply chain. Their success relies on detecting subtle industry tremors and monumental transformations to navigate more precisely through their daily list of challenges. This piece explores a typical day in the life of a freight forwarder and the six major trends necessary to excel in 2024.

The everyday challenges of being a freight forwarder

Overworked and understaffed, a day in the life of most freight forwarders means responding to shipper price requests, securing carrier rates, producing accurate and timely proposals, and generally managing a deluge of information. As if their days aren’t hectic enough, forwarders also grapple with continuously evolving shipping and customs regulations across international borders.

The day isn't over yet! Supply chain visibility is challenging for many freight companies as teams are often blind to problems brewing downstream due to error-prone manual data entry or siloed information. When issues impact sales and operations, it can be impossible to diagnose, leading us to the first emerging trend that can help freight forwarders succeed.

What trends are emerging in the freight sector in 2024?

As we usher in 2024, six pivotal developments lie ahead for freight forwarders seeking sustainable growth amid another turbulent year.

Digitization acceleration 

Too many forwarding processes still center around manual paperwork. Online booking systems, e-billing platforms, digital waybills and certificates of origin now offer a path to efficiency. Early adopters of this technology can position themselves to capture a competitive edge and revenues.

Automation in freight forwarding will accelerate

In 2024, digital transformation for Freight & Logistics (F&L) companies will be characterized by the widespread adoption of game-changing technologies such as generative artificial intelligence (AI), machine learning, and predictive analytics. This is the year they prove they’re more than just buzzwords by becoming trusted tools that freight forwarders can leverage to level up productivity, data integrity, visibility and customer experience.  And open up an irretrievable lead on competitors as early adopters of automation and AI.

Ongoing supply chain disruptions

The supply chain turmoil of recent years is intensified in 2024 by the Red Sea situation and an oversupply of shipping vessels, causing many shippers to reduce rates beyond profitability to weather the storm. Issues like port congestion, labor shortages, trade disputes, and extreme weather events persist, leading to variability and volatility in shipper demand, cargo rates, and shipping capacity. Freight forwarders will need contingency plans to handle the fluctuations ahead.

Sustainability on many agendas

Amid droughts in the Panama Canal and the western US, scrutiny of the shipping industry’s environmental impact is under scrutiny, and companies are investing in solutions for greener transportation and logistics, like alternative fuels, route optimization, and carbon offsets. 

Major players like Maersk are committed to reach net-zero greenhouse has emissions by 2040. As a result, forwarders may see demand grow for eco-friendly delivery options, optimizing loads and routes to reduce empty miles, and exploring alternative fuels. Offering net-zero shipments may turn into a major advantage. 

Customer experience focus

Strengthening shipper relationships tops the strategic agendas of many freight forwarders in 2024. Think branded customer portals with shipment dashboards, exception alerts and easy online booking options. In addition, generative AI-powered freight forwarding platforms are revolutionizing the door-to-door quote generation process, contributing to customer satisfaction and retention by providing efficient and tailored freight rate calculations.

Industry consolidation

With freight forwarding giants DSV, Kuehne + Nagel, and DB Schenker accelerating M&As, scale and reach have become critical competitive factors. But what if you’re a mid-size forwarder? Double-down on dominating your region, industry, or service line. Teaming up with specialists in different areas can be a cost-effective strategy for mid-size companies to enhance services without a costly M&A.

How can freight forwarders thrive in 2024 and beyond?

Unlike in 2023, the need for digitalization is more urgent in 2024, as the cost of relying on paper-based processes and siloed systems means falling behind competitors and gifting them with an irretrievable lead.

No roadmap to sustainable growth is complete without embracing generative AI-powered capabilities like smart data extraction, validation, and analysis to eliminate error-prone administrative work. Forwarder teams can then focus on high-value tasks like securing capacity, negotiating win-win rates and providing exceptional service to compete in 2024.

Centralizing data and documents across the enterprise is also crucial for visibility since integrated systems offer vital insights to optimize workflows, ensure compliance, and guide strategic decisions.

Stargo: unleashing your revenue potential through AI-driven innovation

Investing in technological innovation enables freight forwarders to work smarter, seize opportunities faster, and unlock their full revenue potential in 2024 and beyond.

Stargo offers a generative AI purpose-built platform to drive growth and resilience by allowing freight forwarders to manage 2024’s ongoing volatility more efficiently.

Stargo’s advanced Large Language Model (SLLM) is trained on freight, logistics, and supply chain data from over 1 million free-text, real-world emails and documents. It automatically extracts data directly from any data source and format, cleanses it, enriches it, and validates it for accuracy, drastically accelerating the proposal generation process to capture more business rapidly. Plus, by centralizing information across your enterprise, Stargo provides complete visibility into sales, operations, and more to optimize decision-making. Schedule a demo.