Is Your Freight Forwarder Becoming Obsolete?
A recent article in the Wall Street Journal made some in the freight forwarding industry question the viability of their profession. One could ask, is the freight forwarder becoming obsolete?
According to the article in the Wall Street Journal, some Western companies are starting to bring manufacturing closer to home. Due to technological advancements, it is becoming possible for companies to manufacture goods closer to the point of sale. By making use of automation and keeping manufacturing costs low, manufacturing now happens right next door.
The obvious advantage is that transportation costs of goods will be much lower. It will also be better for the environment, as transport in general is a big contributor to global warming. The costs of storage will also be reduced. Since the goods are manufactured closer to the point of sale, goods will be brought to market faster.
Although this trend towards automation can be seen as positive in many aspects, many are dissatisfied because of the following two reasons:
- The loss of jobs. This process relies on automation in order to make the costs of manufacturing affordable. Jobs and income is therefore taken away from the countries which previously manufactured those goods. However, the jobs are not necessarily created in the countries where the goods are now manufactured, as machines are now doing much of the work.
- The import/export industry will suffer. A large part of the world’s population make their living by moving goods from one country to another. Outsourcing manufacturing is quite a complicated process, but was done because it was more cost-effective. Without the cost saving, a lot of people might reconsider importing and exporting goods. As a result, freight forwarding won’t be in such demand.
The Freight Forwarder Becoming Obsolete – a Definitive NO!
Quite simply, the honest answer to the freight forwarder becoming obsolete is no. Freight forwarding might be slightly less in demand as companies move manufacturing closer to home (the jury is still out on whether many companies will actually make the move) but freight forwarding will always be in demand. The reason is simple: people want the best that the world has to offer and they will go to any means to get it. It is not unheard of to have French wine with a meal you cooked using Indian spices, finished off with some Dutch cheese and Swiss chocolate.
People have been able to give the best they have to offer to others around the globe – freight forwarding has made this possible. The world is a global marketplace, where any resource can be accessed if you have the means to do so. The freight forwarder becoming obsolete will change the face of the world economy. Considering the global economy we now live in, that will not easily happen.
The services a freight forwarder provides range far wider than the mere transport of goods to distant locations. There are industries that won’t be able to thrive the way they do if not for the freight forwarders they work with.
Companies moving manufacturing closer to the point of sale will have an impact on freight forwarding. Trade between countries have existed for thousands of years. It will continue to exist for thousands more.