The global market for freight transport is projected to draw substantial demand and the market is powered primarily by global economic growth.
The freight market is very important because the cost of shipping affects profit margins for businesses that absorb shipping costs or consumers who purchase imported products.
Companies that participate in trade on the global scale use two primary forms of shipping: ocean freight and air freight.
Globally, freight companies reduced ocean shipping capacity to match these dwindling demands to keep rates as consistent as possible.
However, demands skyrocketed towards the end of the year and have kept rates up since then.
Depending on the freight and the type of accommodation, packing, receiving and securing requires various kinds of ships to be transported. Investment in port facilities and the global supply-command period would have a positive impact on the cargo shipping industry.
Growing investment in port facilities, the global supply and demand cycle are also main drivers for the cargo shipping industry.
The demand trends for air freight are consistent with those of ocean freight, but the availability of air freight has seen a sharp decrease this year. 90% of air cargo normally travels by passenger jet, air cargo is currently more expensive than it usually is.
COVID-19 and digitalization:
Rates in shipping are directly impacted by supply and demand. COVID-19 has affected freight in a number of ways, both directly and indirectly.
The global digitalization and push towards eCommerce have made it possible for retailers to connect with both customers and suppliers online.
2020 has been an abnormal year in freight because of COVID-19, and at this rate, 2021 is equally as unpredictable, what happens with freight in 2021 will depend on when demands fall back into the regular annual cycle.
Growth + Change = Opportunity! How are you going to capitalize on the opportunity as a freight broker, agent or dispatcher?
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