The Current Setting in the International Freight Arena

The trends of the transport and freight industry are based on stakeholders & key players and forums that govern the international freight arena. One such forum is the International Transport Forum (ITF) by the OECD, the Organisation for Economic Co-operation and Development that has 57 member countries in its roster. The ITF acts as a think-tank for transport policies to foster improved transport against economic growth, environmental sustainability, and social inclusions, whilst also analysing transport trends and knowledge on international freight, and leads the global platform for transport ministers to discuss global freight policies and more. These forums and industry experts have raised concerns about the intentional freight arena.

ITF OECD ORG international freight arena

 With many international freight companies having to operate under the ever-increasing financial challenges, such as spiking fuel prices as well as natural disasters affecting services and operation, it has left them with low-profit margins. This in turn has affected certain industries to profit from the low-profit margins with repeat customers. This could affect the interventional freight arena in the end, with such companies facing losses.

Furthermore, many players in the industry players have taken to acting as transnational companies to offer assistance in the demand against the rising pricing, to offer economies of scale. This in turn, has an effect on the security and lack of proper policies governing such freight. The probability of loss of cargo is higher when opting for such layers that do not have a reputation in the international freight arena. Within Australia, the Aviation Transport Security Regulations 2005 and Aviation Transport Security Act 2004 regulate air cargo supply chain security; however, sea cargo will require more governance and laws will need to be setup against organised theft of freight.

However, early 2016 displayed a drop in oil pricing which help mitigate freight costs for oil tanker transport, the likes of dry container and container-shipping market has remained the same with the slow trends of global economics. Whilst the sea cargo freight services market in Australia has been in a slump, air freight services has noted a boost with in domestic and passenger airlines carrying cargo.

Thus, with concern to the international freight arena, relying on reputed shipping companies for your freight forwarding requirements is best suited as well and opting for air cargo for small to impotent cargo over sea can help in savings and reliability in the current industry setting.