Truck and Track Summer 2025 www.truckandtrack.com 24 DESCARTES™ In a world of constant change, freight forwarders face rising pressure. Here’s how to navigate the storm and come out stronger. What’s really happening in the global economy — and why should freight forwarders care? The global economy is on shaky ground. Inflation remains volatile, consumer demand is shifting unpredictably and geopolitical instability — like the ongoing ripple effects from supply chain disruptions and regional conflicts — is creating waves across industries. For freight forwarders, this economic uncertainty isn’t just a headline, it’s a reality affecting daily operations. Reduced trade volumes, fluctuating fuel prices, labour shortages and variable shipping rates are becoming the new normal. And all this hits where it hurts most: profitability. When demand drops and margins shrink, operational efficiency becomes the difference between thriving and merely surviving. How do economic downturns directly affect freight demand? Freight demand is tightly interwoven with global trade and consumer spending. During times of economic instability, businesses become cautious. They reduce inventory, delay shipments and often negotiate harder on pricing. As a result, less freight moves — and what does move is often under tighter budgets. This leads to: ■ Increased competition for fewer shipments ■ Pressure to lower prices ■ Idle capacity and underutilised resources The challenge is not just moving goods — it’s doing it costeffectively and strategically enough to remain profitable. What hidden costs are creeping up on freight forwarders during these times? Unpredictable markets lead to unpredictable costs. Freight forwarders are often caught in the crossfire of: ■ fuel price surges ■ port congestion and potential penalty fees ■ higher insurance premiums ■ manual process inefficiencies (e.g., quoting, booking, invoicing) Manual or outdated systems can make these costs worse. When you’re relying on spreadsheets or disconnected platforms, small inefficiencies can pile up quickly. What can freight forwarders do to adapt their strategies? In uncertain times, adaptability is a competitive advantage. Leading freight forwarders aren’t waiting for the storm to pass— they’re recalibrating their operations. Here’s how: ■ Automate repetitive tasks to free up resources ■ Improve visibility and tracking to boost client confidence How will global economic uncertainties impact freight demand and profitability?
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