Softening Freight Rates Point To Downturn In The Sector

The days of a one-size-fits-all approach to logistics are long gone.

In todays fast-paced global trade environment, clients demand a dynamic and efficient mix of transport modes tailored to their unique needs.

Nowhere is this more apparent than in the consolidation space, where agility, responsiveness and service customisation have become critical.

The logistics landscape is constantly evolving especially when it comes to consolidation, said Michelle Horner, trade and WWA manager for SACO.

As client demands shift and supply chain pressures intensify, consolidators must prioritise fluidity and flexibility across their global service offerings.

This adaptability extends beyond just operations its also about value.

The consolidation market has become one that is rate-driven, said trade specialist Kreeson Moodley.

However, that doesnt mean clients are willing to accept sub-par service. They expect quick and efficient transit times with minimal transhipment handling.

According to Horner, there has been a shift towards end customers moving stock and cargo with a just-in-time methodology.

Whether it be pricing, stock control or a downturn in orders, buyers consolidations are becoming more popular. This tactic does require more forward planning of cargo movement, while keeping a close eye on global carrier trends, pricing, transit time and equipment availability.