Digital Freight Forwarder

                                  Digital Freight Forwarder

In the logistics industry, digital forwarders are a relatively recent development. They threaten traditional market participants and assert benefits for both shippers and freight carriers. Since many digital forwarders are still in the early stages of development, the phenomena has not yet been fully explored in scholarly discourse.

Companies in this category frequently enter into agreements with regional firms and forwarding service providers who possess both operational expertise and physical resources. DFFs can avoid operational complexity and its associated costs by lacking internal operational capabilities, but doing so also entails letting go of direct control over exception management and service consistency. Additionally, standardizing and streamlining processes—which are essential for a scalable business model—is more difficult. Therefore, for the time being at least, these types of players concentrate on simpler shipments and rather transactional consumers.

                                                    Future About Digital Freight Forwarders 

Many of them, in my opinion, will experience issues in the next year or two. I doubt more VC investments will be made in the current market players now that the cheap money period is past. Bankers will expect excellent financials and expansion. And given the intense competition and quick adoption of digital solutions by other conventional freight forwarders, this will be challenging. Many digital technologies are currently available on the market for traditional enterprises. Without making large investments, conventional freight forwarders can transition to digital freight forwarding. And this reality will take away from digital freight forwarders' wow factor. Additionally, they won't be able to grow any quicker due to the impending recession. Let's face it, the growth cycle is done, and less money will be spent on glitzy tech solutions as businesses favor sensible things during a recession, such as less expensive freight, insights, and long-term partnerships.

The competition won't be as straightforward as before because established industry players are also beginning to spend in marketing and advanced business development tactics.

The next two years will be crucial for DFF. I believe that some will be purchased by ocean carriers, who, in the case of ocean digital freight forwarders, are expanding into new market segments. With the extra knowledge of the logistics business and the earnings created by the ocean carriers, which can be used to fund future growth, this type of acquisition can succeed.

Online shops may find interest in digital freight forwarders. However, given that the e-commerce sector is also having issues, there is a good likelihood that they will forego any pointless expenditures soon.

There will be a great demand for digital freight forwarders in order to increase competition and live up to the requirements of the time. There are big transformations thanks to price competition, pandemic, and technology. 

As a result of the inscription, it was concluded that digital freight forwarders will replace the new conventional freight forwarders. Of course, we can't say here that conventional freight forwarders will bankruptcy, we can say that conventional freight forwarders will turn into digital freight forwarders over time. As a result of the interview, it is shown that digital freight forwarders bring a great challenge in terms of fast returns, trackable operation features and price competition. In light of the interviews, we have received answers that may reveal that digital freight forwarders are actually not perfect, for example, the interviewees clearly reported that there will be technical problems in digital freight forwarder operations from a software point of view, but also that the lack of human support will be insufficient for the reason of preference. As a common opinion about the future of digital freight forwarders in Turkey, they all believe that it will happen, but there is an opinion that this will not be fast compared to other countries.