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How Freight Forwarding Companies Are More Important Than Ever in 2022

How Freight Forwarding Companies Are More Important Than Ever In 2022

Freight forwarding companies and supply chain planning are going to be critical in 2022. The pandemic created and is still creating a lot of stress and shortages, even in unexpected sectors. Shipping has gone from largely under the radar to front-page headline news as these shortages have become more and more apparent to the average consumer.

What Is a Freight Forwarding Company?

Freight forwarding companies are firms specializing in the arrangement of cargo on behalf of a shipper or supplier. Freight forwarding is the coordination and shipment of goods from one place to another through one or multiple channels, including rail, highway, marine, and air channels.

Why Is Freight Forwarding Important In 2022?

Freight forwarding covers all the main arteries of shipping all around the world. As the world slowly emerges from the heaviest months of the pandemic, shippers and suppliers will be scrambling to catch up on their losses from the previous years. Freight forwarding companies will be, by necessity, at the front lines of this new wave of industry.

From ship to shelf, supply chain issues are forecasted to continue well into 2022, so planning ahead now, pre-shipping when possible, and diversifying your shipments as you can are all solid ideas to build from as we move through the New Year.

The Bottom Line

Ocean vessels carry 53% of U.S. imports and 38% of U.S. exports by value. While these are far from the only shipping lanes in use today, they are some of the most well-known and highly valuable. With shortages appearing in nearly every sector, 2022 is poised to be a rocky one for the shipping industry as a whole. Freight forwarding companies would also be wise to plan around work slowdowns, walk-outs, and potential strikes as dockworkers renegotiate a long-standing Union contract. Diversifying as much as possible may create a good buffer.

In the end, only time will tell what 2022 will really look like for the shipping industry. As things come back online post-pandemic, shipping will likely lag behind demand for a while, so it’s important to plan for shortages now and take potential worker shortages into account as well. With so many industries facing similar shortages, shipping and suppliers are becoming ever more important in this changing climate.

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