A FREIGHTOS study, arising from a survey of 90 logistics professionals from its Hong Kong base, has determined three main threats to the traditional forwarding business model.
1) Eroding margins and commoditisation of core logistics services.
2) Higher and more volatile expectations from customers of greater transparency; more-frequent, market-relevant pricing; and enhanced supply chain IT support. Within the changing supply chain expectations from customers, the trends were primarily manifested in shorter contract lengths, increased spot quoting, and provider consolidation.
3) Emerging players including technology giants.
Eroding margins and commoditisation of core logistics services mean that "the first substantive change logistics providers face is to their bottom line", said Frieghtos, an online marketplace putting buyers and sellers of logistics services together.
Said Freightos CEO Zvi Schreiber: "Our survey finds evidence that freight's senior business leaders are finally gearing up to adopt new technologies for automating freight sales. 2016 will be the year where freight finally goes online."
Source : HKSG.