The transportation industry has faced challenges over the last few years, but has shown resiliency and adaptability to changing market conditions. Working with a 3PL that has experienced these changes can help you prepare for the future as you grow your business.
Challenges And Shifts
Throughout the chaos of the pandemic and the large-scale supply chain disruptions that followed, increased efficiency and resilience became essential for logistics providers. Congested ports and a surge in demand for transportation services created a fast-paced environment where competition for capacity was fierce, and freight rates spiked. Although the freight market had a period of adjustment and recovery, freight agents and 3PLs emerged from this turbulent time with stronger market predictions and the experience to accommodate dramatic shifts in freight demand and capacity constraints.
In addition to the challenges posed by the pandemic, cargo theft continues to rise and become more sophisticated. From 2023 to 2024, cargo theft incidents increased by 27%, with the average value per theft increasing by 7.7%. Diligent security practices and efforts to avoid bad actors are more important than ever to adapt to new strategic crimes. Learning to recognize and avoid common freight scams is an essential skill for any freight agent to cultivate continuously.
Fluctuations in fuel prices and freight rates due to changing geopolitical climates are always present, however, current events and changes over the last few years have created a unique environment for current shippers and brokers to navigate. Working through challenges like these has helped freight agents and 3PLs refine their processes and become more prepared to offer advice to clients and support their business needs through shifting global impacts.
Resilience and Adaptability
Brokers have shown resilience and adaptability in a changing market by working through the increasing number of natural disasters impacting North America. Unexpected disruptions can be difficult due to the uniqueness of hazardous weather events. Utilizing the resources and support of a 3PL can help you provide quality emergency service to your clients and prepare you to work through potential delays. Being aware of the most common weather disruptions in each season gives you the tools you need to build a resilient shipping strategy with your clients. Learn more about how to handle freight disruptions due to dangerous weather here.
In addition to hazardous weather preparedness, freight brokers have worked to prepare for disruptions in the industry related to emerging technology and cybersecurity updates. Artificial intelligence tools and new methods of data protection develop quickly, and it is important to keep up with them to properly utilize them. The efforts of freight agents to stay up to date on cybersecurity help to combat rising cargo theft incidents. The implementation of AI tools and further risk management training helps freight agents remain agile through advancements in technology.
One way that some freight agents are becoming more resilient is by working with 3PLs to utilize their support and resources. Agent programs that offer resources informed by previous market changes give even experienced freight agents essential tools and support they can use to grow their businesses and provide value to their clients. The England Logistics Authorized Agent program provides a comprehensive service portfolio for agents covering everything from full truckload to parcel. Agents also have access to a large network of trusted carriers that can help them secure the capacity their clients need. These resources help agents to provide custom solutions with flexible scalability to their clients. In addition, back-office support through our collections department, claims department, and credit department helps to streamline day-to-day operations, giving you more time to grow your business.
Overcoming industry challenges and becoming more efficient is a good indicator of long-term stability and strategic expertise. Choosing a partner with decades of experience navigating evolving market conditions is an essential part of your strategy and will contribute to your success.
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