We can freely say that nowadays the world is completely dependent on freight forwarding. A lot of the goods that you are buying daily, were transported from the other parts of the world. However, global logistics is facing a very complicated situation. Or, to say it more clearly, various crises are affecting the goods transport nowadays. So, the shipping and logistics companies have started to look for alternatives to maritime and road transport.
Why do we need alternatives to maritime and road transport?
The crisis began with the outbreak of a pandemic. Moreover, from that time, the other crises have been threatening global logistics. So, they can result in a generalized shortage. We all know how a lot of cargo containers were kept in ports for months. The cargo ships were docked, due to the global pandemic. Besides all those problems, there is one more issue hampering maritime cargo transport. That is the shortage of containers and space.
Also, being without a job for a longer period, many freight forwarding drivers turned to other jobs. So, at the moment, there is a shortage of drivers. This further means that the cargo can’t be transported as fast as needed. Those are some of the reasons why transport companies in Riyadh have to look for alternative ways for cargo transport.
Forwarding cargo by air
On the top of already discussed, freight forwarders have to consider one more issue. That is the customers’ demand for ever-faster delivery times. For that reason, many logistics companies in Saudi Arabia are planning to introduce air cargo transport. Until now, this kind of transportation was not used so much. And the main reason was higher transport cost. However, due to the latest increase in prices, maritime and road transport and not so cheap anymore.
Future of the air cargo transport
Thanks to the e-commerce rising market, air transport gets rather popular. So, there are expectations of strong growth in cargo volume. However, air transport has a number of challenges. The air industry has set a goal to reach zero-carbon emissions by 2050. So, they are looking to introduce new energy sources in air traffic. Such energy sources will be much cheaper. And, the air transport costs will decrease. So, this could be the right moment for freight forwarders to prepare. And to be ready to switch to air cargo transport.
Using railway for cargo forwarding
Using the railway for cargo forwarding is not a new idea. However, due to poor rail corridor connections, it was eventually abandoned. Thus, most of the forwarders turned to road transport. Lately, and due to already mentioned circumstances, they are coming back to the idea of rail transport. Actually, the railway is a more efficient means of transport. They can carry bigger loads than trucks. And they can meet deadlines better.
Future of the railway freight forwarding
The main problem in railway freight forwarding is connectivity. Developing better rail corridors will easily solve this problem. And, use of the railway has the potential to reduce carbon emissions. Also, it will improve the efficiency of land transport. So, every freight forwarder in Saudi Arabia will support such an initiative. The efficient land transport will be beneficial for their business.
Future of cargo shipment
There are many ways to transport your cargo. Until now, cargo ships and road freight forwarding were mostly in use. However, some factors are changing. The customers demand shorter delivery deadlines. Also, the present global situation call for some changes. So, imperatives are to find means for cost-effective transport. And for fast riching customers globally. Thus, many freight forwarders are lately discussing alternatives to maritime and road transport. And they agree that they should increase the use of air cargo transport. And also the use of the railway cargo forwarding. Both solutions are very promising. However, they both need better infrastructure. This means more cargo plains and ports. And also, better railways.
