What Will Happen To Trucking Companies In 2020?

Predictions made at the end of 2019 pointed to the potential as well as 2020 had for trucking companies. However, the industry, like many others, has been affected by the global pandemic. Despite certain setbacks faced by shipping services, society’s reliance on e-commerce and delivery companies increased this year due to social distancing measures implemented around the globe.

While transportation services are considered essential services and were permitted to operate during COVID-19 lockdown, the trucking industry has been affected by supply chain disruptions. The unexpected surge in online purchases has forced delivery companies to work longer hours and increase capacity to meet demands.

On the other hand, an international parcel delivery service may have had several restrictions imposed on it, limited the number of services it can offer and locations it can deliver to. Employees of trucking companies will be required to follow several health guidelines that may make their jobs more difficult and time-consuming.

There are thus concerns among freight forwarders UK on how COVID-19 containment measures may impact the industry. While these concerns are legitimate, industry leaders as well as governments may not be able to provide a clear plan for the future and strategies to overcome the setbacks caused to the industry by the pandemic as there is still a lot of uncertainty regarding the coming months.

Despite this, it is important to look at what will happen to trucking companies in 2020 and the predictions made at the end of last year.

  1. Technology

Technology plays an important role in the trucking industry and freight forwarding services make use of technology to ensure efficiency of services like cargo services to India or a parcel delivery service. If a shipping cargo service is sending a parcel to Sri Lanka, for instance, they may use technology to track the goods and give close estimates of delivery times.

As technology improves, freight forwarders UK will be required to adapt to these changes and embrace technology to provide a better service to their customers. This applies to software used in corporate offices to streamline operations as well as technology used in trucks to improve the services provided by delivery companies.

In 2020, the trucking industry will see changes to their use of technology and can improve the speed and efficiency of service with the use of the latest software and equipment.

  1. Mergers

Unfortunately, harsh market conditions may result in the several delivery companies shutting down. There is a shortage of movement of goods as retails companies are moving fewer goods between locations. This means that trucking companies as well as shipping services and freight forwarding services may have to scale down their operations.

This can change with a significant increase in the flow of freight but may also result in several mergers. A parcel delivery company may opt to merge with another as an alternative to having to shut down.

Mergers can happen in two ways for delivery companies. A shipping cargo service may merge with a similar company, combining resources to continue operations. On the other hand, freight forwarders UK may choose to merge with a company in a different sector or industry and increase the range of services they offer.

  1. Optimism

As worrying as harsh market conditions and the impact of COVID-19 on the trucking industry can be, there is also room for optimism. Despite restrictions limiting services of freight forwarders UK to send a parcel to Sri Lanka or carry out cargo services to India, there has been an increased demand for delivery companies caused by the pandemic.

Changes in the industry during the second half of the year may give freight forwarding companies something to be hopeful about and new developments and market flips are among the predictions made for trucking companies in 2020.

One change to look out for is changes in pricing. Trucking companies operate on relatively low rates and these rates may reduce further. However, if demand for delivery companies increases, there could be an increase in rates.

  1. E-commerce

The e-commerce industry depends on freight forwarding services as well as shipping services and the rapid growth of e-commerce may give the trucking industry the boost it needs in 2020. When considering what will happen to the trucking industry in 2020, it is important to consider the positive growth a shipping cargo service may see due to the expansion of e-commerce this year.


How To Ship Cargo Internationally

International shipping companies have seen an increase in activity with the growth of e-commerce. While there could be certain restrictions depending on the locations of the sender and recipient, for the most part, online shopping has removed barriers to buying and selling between people and stores in different countries.

Ordering items from an e-commerce vendor based in another country is a task that takes a few minutes at most and using a parcel delivery service to send a parcel to Sri Lanka requires very little work from the sender. However, this does not mean shipping cargo internationally is a simple and easy affair.

Operating a shipping cargo service requires various licensing and paperwork and the procedures to be followed by freight forwarders UK must be carefully studied. If you plan on launching your own freight forwarding services, these are a few things you must know about shipping cargo internationally.

Seven steps of international shipping

There are seven key steps taken by freight forwarding companies when handling every single international shipment. Two of these are described as documentation steps and the remaining five are physical steps.

  1. Export haulage

An international shipment starts with the shipper. Transporting the item from the shipper to the forwarder’s premises is known as export haulage and is the first step of international shipping. The forwarder’s premises can be an export consolidation centre or origin warehouse, where the forwarder has their own people or agents in control.

Freight forwarding companies can be of use here, especially if the shipper is not using a local transportation company for the export haulage.

  1. Origin handling

The next step taken by a parcel delivery service is origin handling. This covers all physical handling of the cargo, including inspection, from the time the origin warehouse receives the goods from the shipper to the time it is loaded onto a shipping cargo service.

Origin handling is essentially all steps taken from the time the cargo is received to when it is inspected and tallied, planned for loading, consolidated with other cargo, put in a container, moved to the port, and loaded onto a ship.

There are several parties and steps involved in origin handling and freight forwarders UK typically coordinate the process to ensure it takes place smoothly. Problems that can crop up in this stage include disagreements on origin chargers and costs.

  1. Export customs clearance

If you want to send a parcel to Sri Lanka or launch cargo services to India, you will be required to follow an export customs clearance process. The process and what is required of you depends on what you plan to do, whether it is to move goods to an EU country, send goods through the post, take goods in your luggage, car, or van to sell, or take goods temporarily out of the UK.

If you are a UK-based cargo service, you can contact the HMRC for more information on the procedure applicable to you when exporting goods out of the UK and EU.

  1. Ocean freight

Shipping services often use ocean freights for international cargo, unless specified to use air cargo or another method of transportation. Freight forwarding services will decide on the shipping line from the port of origin to port of destination.

Working with reputed freight forwarders UK and building a wide net of contacts is vital to making sure this stage of transporting goods internationally is carried out without any issues.

  1. Import customs clearance

Once the shipment arrives at the destination port, the import customs clearance process begins. The process you will be required to follow and documentation to be produced will depend on the type of goods as well as the destination country’s import customs regulations.

Freight forwarding companies are usually aware of the process of import customs clearance and will know what documents to submit to ensure the cargo services to India can be carried out properly.

  1. Destination handling

Destination handling is one of the last steps delivery companies carry out in international shipments and consists of the container being transferred from ship to shore and the port to the forwarder’s destination warehouse. This stage includes removing the goods from the container and preparing it for collection.

  1. Import haulage

Import haulage is the process of transporting the goods from the destination warehouse to the consignee and is performed by either freight forwarding companies or a local transportation company.


Overview Of Import And Export Documents And Procedures

Several documents are required when importing goods to the UK and EU and exporting out of the UK and EU. These include customs declarations, outward processing relief, and Union Transit.

  1. Authorised Economic Operator status

The Authorised Economic Operator or AEO status is an internationally recognised quality mark that shows that the role of your parcel delivery service is secure in the international supply chain and has customs control procedures that meet UK and EU standards.

There are two types of AEO status; Authorised Economic Operator customs simplification (AEOC) and Authorised Economic Operator security and safety (AEOS). With AEOC, you can benefit from a faster application process for customs simplifications and authorisations, a reduction or waiver of comprehensive guarantees, and a 70 percent reduction in a business’s deferment account guarantee.

The benefits awarded by AEOS include a lower risk score, reduced declaration requirements for entry and exit summary declarations for countries outside the UK and EU, and reciprocal arrangements and mutual recognition with countries outside the EU.

  1. Customs declarations

Freight forwarders UK deal with two types of customs declarations; Customs declarations for goods brought into the UK or EU and customs declarations for goods sent out of the UK or EU.

If you are a UK-based parcel delivery service bringing in goods to the UK or EU, you will be required to complete an import declaration to get your goods through customs. You can submit your declarations electronically through the Customs Handling of Import and Export Freight (CHIEF) system.

If your business provides cargo services to India or wishes to send a parcel to Sri Lanka or anywhere outside of the UK or EU, you must complete an export declaration. For most goods, you will be required to make a full declaration before the goods arrive at the port of export.

You can submit your declaration electronically through the National Export System but there are different rules for carrying merchandise in your baggage with a value less than £873 and exporting goods by post.

  1. Moving goods within the UK and across partner countries

Shipping services that wish to move non-EU goods within the UK or EU will be required to use the Union Transit (UT) procedure. This procedure is also used when moving goods to or from special territories, which are the Aland Islands, the Canary Islands, the Channel Islands, French Guiana, Guadeloupe, Martinique, Mount Athos, and Reunion.

UT is also used to control the movement of certain goods between the UK or EU and Andorra, as well as between the UK or EU and San Marino.

If your shipping cargo service goods fall under UT, they must be presented to customs at the office of the destination.

  1. Temporary admission

Freight forwarders UK that are temporarily importing goods like samples, professional equipment, or items for exhibitions or auctions will be granted temporary admission or TA. If the freight forwarders UK do not alter the goods while they are within the EU, the TA will exempt the goods from duty or import VAT.

  1. Outward processing relief

EU traders can temporarily export goods from the EU for processing or repair in a third non-EU country and claim full or partial duty relief when the goods are re-imported through outward processing relief or OPR.

OPR cannot be used in conjunction with the Common Agricultural Policy and goods eligible for OPR must originate in the EU and must have been imported to free circulation within the EU with all customs formalities completed and customs charges paid in full.

  1. Licenses

Whether you wish to send a parcel to Sri Lanka or set up freight forwarding services or cargo service to India, you will be required to get various licensing. If you are planning to import regulated horticultural, plants, live animals, and animal products, you will be required to use the Automatic Licence Verification System (ALVS).

The ALS provides a link between the import and export licence application systems of the Department for Business, Innovation and Skills (BIS), and HMRC Customs Handling of Import and Export Freight (CHIEF) declaration system.

  1. Records, paperwork, and checks

Freight forwarding companies are also required to keep records for all traded goods declared to HMRC for four years for duty and tax purposes and for government statistics. Delivery companies may also be required to obtain necessary international trade paperwork like contracts, licences, declarations, and documents to import and export goods and services.


How E-Commerce Affects UK Surface Transportation

Surface transportation is the movement of people or goods by road, train, or ship, excluding air transportation. While there are several ways that e-commerce has had an effect on UK surface transportation, the impact can be narrowed down to four main areas.

A distribution pattern is one of them. Consumers no longer need to leave the house in order to purchase items, whether it is groceries, household items, clothes, electronic devices, or jewelry. From different brands, models, price points, to sizes, almost anything you need can be purchased via e-commerce platforms.

While people are relying on e-commerce platforms to have products delivered to their doorstep, the e-commerce businesses themselves may not have their own delivery services. This could be due to the fact that maintaining shipping services for one’s business is a costly affair but also because they may not have the network or manpower to create a wide network required for a parcel delivery service.

Cargo services to India and other Asian countries from the UK can be costly and an e-commerce platform cannot incorporate shipping cargo services to India or other Asian countries to their services if, for instance, a customer wants to send a parcel to Sri Lanka.

In addition to this, an e-commerce company may not see the need to develop its own delivery arm when there are several freight forwarding companies and shipping services that provide an excellent service, with quick delivery.

Thus the growth of e-commerce platforms and businesses can be linked to the growth of the parcel delivery service sector as well as UK surface transportation.

Whether an e-commerce platform has its own delivery armor uses a network of parcel delivery service and freight forwarding services, there is a need for vertical integration. Strategies must be developed and implemented to integrate sortation centres, pickup points, freight forwarders UK, and delivery companies.

This integration is vital for e-commerce businesses as it will streamline processes, ensure customer satisfaction, and reduce the number of possible issues that can spring up between an order being placed and the product being delivered to the customer.

With convenient shopping platforms and quick and efficient delivery, vendors are finding that it is more financially viable to maintain online stores rather than physical retail outlets. Several chain retailers are reducing their retail footprint and are instead of improving their e-commerce platforms.

While retail footprint reductions, however, e-commerce platforms are relying more on delivery companies and freight forwarding services. They may also use shipping services for international orders instead of expanding their branch network to those countries. For instance, a vendor can use cargo services to India or send a parcel to Sri Lanka with the use of freight forwarders UK instead of having to invest in those markets by increasing their real estate footprint.

This has been made possible, for the most part, because UK surface transportation has been able to meet the demands of e-commerce by offering a range of services. These could include different delivery methods, whether it is by sea or road, as well as tracking or express delivery options.

It is also important to note that businesses are using their physical retail outlets as warehouses, showrooms, and pickup locations, thus maximising on the space available to them.

According to Statista, all e-commerce sales in the United Kingdom amounted to 688.4 billion GBP in 2018. This is an increase of slightly over 100 billion GBP since 2017. While there are several factors that have contributed to this increase in e-commerce sales, when looking at how e-commerce has affected UK surface transportation, it is safe to assume that better online customer experience and quick and efficient shipping services will attract more customers to online stores.

However, quick delivery and efficient service by freight forwarding services and shipping services mean that there can be no delays on the retailer’s part. E-commerce retailers may thus invest in improved warehouse facilities and technology that improves the storage of items so that retrieving them when orders are placed is not a time-consuming task.

The need for increased storage facilities as well as clear and precise inventory and cataloging has risen with the growing number of sales e-commerce businesses are seeing.While e-commerce has affected UK surface transportation in these ways, the impact has resulted in the need for increased regulations imposed on delivery companies and freight forwarders UK, whether they are used for domestic deliveries or international deliveries, for instance, to send a parcel to Sri Lanka.


Making Air Freight More Efficient

Goods were first transported by air in 1910 when a package of silk was transported from one city to another in Ohio. In the years that followed, attempts were made to develop air freight but significant progress was only seen in 1930. Since then, goods have been regularly transported by air and freight services benefitted greatly from improvements made to transportation.

Our dependency on air freight has grown over time, with packages being sent not from one city to another or even one state to another, but with the transportation of items by air from one country to another.

One of the main reasons people prefer air freight over other logistics solutions like by road or by sea is that air freight takes less time. As connectivity between locations around the globe has increased, there has been a need to shorten transport times. A shipping cargo service may take several days to weeks to deliver a package and road services by delivery companies are not an option for deliveries that cross borders and oceans.

A parcel delivery service by air is thus one the best ways to have goods transported from one place to another in a short period of time. The speed of delivery when sending a parcel to Sri Lanka, for instance, is significantly better by air than by sea.

Due to the speed of a parcel delivery service, many people opt for air freight. This increased volume of goods handled by freight forwarding companies has resulted in the need for aircraft that are dedicated to shipping services. A cargo aircraft is one designed or converted to carry packages and parcels as opposed to passengers.

Cargo aircraft has a larger capacity and can thus carry a larger quantity of goods in a single flight. This is extremely beneficial to freight forwarders UK and it has never been easier to send a parcel to Sri Lanka or any other country.

Of course, the capacity of a cargo aircraft may not compare to a shipping cargo service, which can accommodate larger and heavier items. However, shipping services often take a significant amount of time to deliver a parcel to Sri Lanka and the parties sending and receiving the items may not be able to accommodate long shipping and delivery times.

Thus, even though the need for a shipping cargo service remains and will be felt for years to come, there is no denying that many people turn to freight forwarding companies for their air freight parcel delivery service.

The speed of delivery as well as the capacity that a cargo aircraft can accommodate makes air freight an efficient service. Efficiency is the use of resources such as time, materials, or energy without waste and it is one of the key benefits of using air freight over a shipping cargo service.

As was discussed before, cargo aircraft have a larger capacity for goods and packages. With more items being moved with each cargo flight, the speed of moving or delivering a parcel to Sri Lanka has increased significantly. This points to how efficient air freight is, as items need not sit in storage or processing for long.

This is time-saving for the sender and recipient, but it also means that delivery companies can expand their services and capacity without it affecting their parcel delivery service times. Expansion of services can include new locations with distance not being a barrier. For instance, freight forwarders UK can offer air cargo services to India or send a parcel to Sri Lanka in an extremely short time.

In addition to this, freight forwarding services maintain a network of industry agents to deliver an improved service with on-time deliveries, rapid shipping, sensitive handling, and precise temperature regulation if required.

These industry partners also allow delivery companies to offer low rates while also adhering to international standards for shipping services and product delivery. When sending a parcel to Sri Lanka through freight forwarders UK, the sender and recipient may also have access to additional features like parcel tracking, which can give them an accurate estimate of when the parcel will reach its destination.Features like this make air freight a more efficient method of sending goods from one location to another. While speed and efficiency are two of the key components of a parcel delivery service, people will always have the option of shipping services for larger items that need not be delivered in a short period of time.