The Evolution of Freight Forwarding: From 1975 to Today
The freight forwarding industry has undergone significant transformation over the past five decades. Since 1975, advancements in technology, globalization, and regulatory changes have reshaped the way goods move across the border. What once relied on manual processes and extensive paperwork is now a digitalized and effective industry.
Freight Forwarding in the 1970s
In the 1970s, freight forwarding was a labor-intensive industry. Logistics companies relied heavily on paper-based documentation, such as bills of lading and custom forms, which were manually processed. Another key aspect was the communication. It was much slower than what you can expect in modern times due to telex, faxes, and phone calls. Without modern tracking systems, shippers often faced long waiting times and limited visibility into the status of their shipments.
During this era, ocean freight dominated global trade. The standardization of shipping containers, pioneered by Malcolm McLean in the 50’s, was becoming widely adopted, leading to improved efficiency in cargo handling. However, freight forwarders had to handle complex logistics with minimal technology.
The Rise of Globalization (1980s-1990s)
The 1980s and the 1990s saw the expansion of global trade, driven by economic growth and the rise of manufacturing in Asia. Countries like China became major exporters, increasing demand for efficient freight forwarding solutions.
This is around the time that technology began playing a more prominent role in logistics during the period. The introduction of electronic data interchange (EDI) allowed freight forwarders to exchange information digitally. Computerized tracking systems allowed for better shipment visibility, and companies started using software to manage logistics.
The Digital Revolution and Supply Chain Integration (2000s-2010s)
The early 2000s marked the beginning of a major shift in the freight forwarding industry. The Internet enabled real-time communication and tracking, enhancing the transparency in the supply chain. Allowing for customers to now monitor their shipments in real time, ultimately reducing uncertainty and improving efficiency.
Supply chain integration became a key focus, with freight forwarders collaborating more closely with manufacturers, retailers, and logistics providers. The rise of third and fourth-party logistics companies offered businesses comprehensive solutions. This led to the reduced need for in-house transportation management.
Freight Forwarding Today and the Future
Today, freight forwarding is more technology-driven than ever. These advances are assisting with optimizing routes, reducing delays, and enhancing security. For more information regarding the advancements in freight forwarding contact our team of experts! Bruning International is proud to offer our 50 years of experience for all your freighting needs!
