The future of freight transportation beyond 2017 is widely expected as bright despite the fact that current situation of industry is not that good. There are serious challenges ahead so it might take a few years for the industry to get out of the challenges on victorious note. Nevertheless, the issues and challenges are definitely going to create embarrassment for industry personnel and frustration for the customers. What are those challenges and from where they are originating? It’s a worth discussing topic.
The uncertainty over economy
Robust economy has a huge role to play when it comes to the requirement of driving shipping industry in right direction. At this very time, the forecasting of microeconomics seems next to impossible. Some other big issues, which remain unsettled until now, also seem to affect the industry. It is speculated that even if these issues are resolved immediately, their impact will remain there for quite a while and, hence, shipping industry may require at least a few years to fully recover from what it is inevitably going to face.
The issues, whose impact on shipping business is certain, are as under.
- The ongoing trends suggest that Britain’s exit from European Union is going to create huge gap in economy. But, the decisions that can be made as a consequence of Brexit can be both, the good or the bad. For instance, Brexit’s effects can cause European Union to further break down, or some effective decisions may be made to strengthen the Union.
- Another major factor is the political uncertainty in US. Things will be clear with strategies that new administration will work on. However, the present situation has already restrained economic growth in United States. It might be due to ‘Wait and Watch’ approach that businesses and industry are following.
Since shipping industry’s growth is hugely associated with the growth of other industries, an economic uncertainty would definitely hit the shipping industry.
The major issues that restrain the growth of shipping industry are as under.
- Most of the drivers working in shipping carriers are either retiring or looking for other job opportunities. This trend is leaving shipping industry with a shortage of this valuable resource which is vital to keep the industry functional.
- If we ask from the experienced drivers in US, they would tell the sorry state of roads and other infrastructure. It is surely one of the biggest challenges that freight shipping industry is facing. Deteriorating infrastructure poses serious threat to the integrity of packages being transported. Strong shipping boxes with ample cushioning inside to avoid shock to the items seems to be the best bet here but improvement in infrastructure is now the crucial need.
Despite the challenges, there are some positives that are expected to make the shipping industry regain its charm.
- The driverless vehicles are now being considered for shipping. Although this technology may not be operational in 2017, shipping industry is going to deal with the shortage of drivers this way in the years ahead.
- Although economic uncertainty is clouding the situation of a few developed countries, global economy is on the rise. Air and sea shipping carriers are working to collaborate with LTL and FTL shippers. This collaboration will help in making the products’ delivery possible in every part of the world.