Freight Forwarding Logistics Trends in 2021

AUSTIN, Texas - March 23, 2021 - PRLog -- 1. Covid Vaccine Efforts Shine A Positive Spotlight On Cold Chain Logistics

Public awareness of the supply chain logistics industry has reached an all-time high during the Coronavirus pandemic as consumers stewed over supply shortages – from critically low inventories of masks (and other PPE) to toilet paper and household cleaning products.

Fortunately, the logistics industry has found an opportunity for redemption – thanks to its massive efforts to deliver Covid vaccines across the US – and across the world. The first two US-approved vaccines from Pfizer and Moderna have been especially challenging for the logistics cold chain as these two products must be kept at the equivalent of ultra-low dry ice temperatures.

2. ECommerce Boom Under Threat Of Stalling Out Due To Package Delivery Troubles

While vaccine deliveries remain a bright spot in the logistics market (for now, at least), there is major trouble brewing in the package delivery market.

Demand for home delivery has skyrocketed as more consumers have switched to online eCommerce purchases. With fewer customers coming into stores, big retailers have responded by leveraging their physical stores as local distribution centers, an omnichannel strategy known as "Buy Online Deliver From Store" (BODFS).

However, many big box stores, such as Home Depot, are facing major headwinds in pursuing efficient BODFS operations due to the unprecedented demand for package delivery, which has led to skyrocketing freight forwarding costs and excessive home delivery delays.

But fast-growing companies, such as the up-scale exercise bike manufacturer Peloton, recognize that continued delivery delays could curtail consumer demand; to the detriment of the bottom line. As a result, Peloton will invest an additional $100 million to ensure their air and ocean freight deliveries ship on time.

In the next three trends, we'll take a detailed look at how demand is outstretching supply for overseas container shipments, intermodal and truck freight forwarding, and air cargo deliveries.

3. Cost Of Overseas Container Shipments Will Continue To Rise Dramatically

Overseas container shipping has suddenly snapped back from the record low demand levels of 2020.

But the recovery, driven in part by US consumer demand for outdoor patio furniture, work from home (WFH) equipment, and other large household items, has left trans-oceanic shippers unable to meet demand.

Container availability has been a critical issue, as many shippers, faced with the cost of paying for "blank shipments" of empty containers back to Asia during mid-2020, elected to temporarily "abandon" them in Western ports (particularly in Europe), and these have been slow to return to Asian ports.

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