Release Date:
Release ID: 1379

FREIGHT LOGISTICS FUTURE: An independent View by N. "Raj" Rajendran, ME, (MBA), FIE

It is not merely moving cargo from point A to B and much beyond. With the mergers of giant companies, sea ports, airports, financial houses, stock markets, banks etc., the very business strategies tend to change to meet today’s world.

The day is not very far away. Both major airlines and shipping lines will invest in export manufacturers so that all their products are moved only through those airlines and shipping lines, where they have a say in terms of ownership of the company in part or parts.

The effect of this will lead to smaller companies dying down and the big forces will be controlling all sectors, monopolizing the business. It’s already happening in giant software companies and there are some legal issues to it which we see in the business world.

Getting to the point of freight logistics future in particular, though the conventional methods of freight, airlines and shipping companies directly dealing with prospective manufacturers or wholesale and retail traders, there are some interesting global developments we can witness.

Now, we can categorically figure out each continent, the most favoured countries with whom business can be generated. War torn countries, where ceasefires have taken place, financial indicators where the flow of funds will go to whichever country. Political stability, government policies, pro or anti and so many other reasons and indicators comes out.

90% of the world’s trade and movements takes place through shipping lines with a long transit time and merely 10% by airlines with a shorter transit time but with 1000% more cost than sea option. Knowing the vast scope available then why are airlines not increasing their intake out from 90% of sea movements? Airlines should focus on fuel efficiency and reducing operating cost of aircrafts to carry optimum load, economical routing and competitive rates. Logic is simple, when populations grow, more births than deaths then the overall consumption needs will increase. Faster deliveries will matter a lot. Airlines can have a tie up with leading manufacturing companies and with their spare parts distribution centers worldwide to maintain the fastest delivery, so that the concerned machine in another part of the world is not down due to want of spares having not arrived in time. Freight companies should also have a similar marketing strategy and be a catalyst for airlines business thereby getting their share of the profit.

With Internet, web, email, mobile phones, video conferencing etc., the world is shrinking and approachable in matter of minutes, without any borders. Borders are politically created on the ground, but not in space, which belongs to us all. Aviation business is booming, as human touch, eye to eye contact, body language are all needed to succeed in business. The day is not far away where people can move anywhere in the globe without having the need for visas etc., except the wrong ones with bad record will be checked at entry and exit point. Globally all airports should be linked with immigration and interior ministries so that only blacklisted people cannot move around freely. We are touching closer to 7 billion population globally and out of this a very minute percentage of people who are wrong ones. So, instead of maintaining database of the whole lot, let the authorities maintain data base for wrong ones only, those blacklisted for various crimes, while the rest can be free to travel. Therefore at the airport all the authorities need to check is whether your name is blacklisted? If not let you travel freely as long as you have valid ticket and finance to manage your trip. This will take long years to happen, but it will one day.

When people movements are free it generates tourism automatically, trade, cargo movements and all related activities and the entire scenario will be booming. Less misunderstanding, people to people contact will bring down all ill feelings of terrorism, hatred and automatic prosperity will prevail.

So to conclude, it is not just moving cargo from point A to B, it is much beyond. All airlines, shipping lines, trading houses have plenty to focus on.

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