| The international freight industry has benefited from | | | | import market, India is an important new market for |
| an increasingly globalised world economy in recent | | | | shipping companies as their economy expands. India |
| years. | | | | has one of the world's fastest growing economies |
| The development of extended supply chains has led | | | | and currently imports more than £2 billion |
| to significant growth in levels of international trade | | | | worth of goods and services from the UK. |
| and this has of course led to growth in the freight | | | | Despite India's inadequate transport infrastructure, |
| forwarding industry. | | | | the Indian freight forwarding industry continues to |
| The growth in profitability for freight forwarders has | | | | expand and a number of Indian shipping companies |
| led to many changes in what used to be a very | | | | have expanded their logistics operations recently. |
| conservative industry. | | | | So India is being touted as the new land of |
| Recently, there have been a large number of | | | | opportunity for international freight services |
| mergers and acquisitions from which a small number | | | | providers, on the back of a retail boom and economic |
| of global shipping companies have emerged. | | | | growth predicted at 9-10% in next few years and a |
| The asset light nature of the freight forwarding | | | | logistics market predicted to grow at 7-8%. |
| industry, combined with the high level of profitability, | | | | But India is hampered by a poor transport |
| has made it attractive to investors. So private equity | | | | infrastructure. The poor condition of roads pushes up |
| has been playing an increasing role in the | | | | operating costs and reduces the efficiency that can |
| development of freight transport. | | | | be achieved by any shipping company . The National |
| A freight company also has the ability to increase | | | | Highways are being upgraded but they account for |
| margins at times of economic downturn, which gives | | | | only 2% of the total road network, so significant |
| it a big advantage over other segments of the | | | | challenges will remain. |
| logistics market. A shipping company can be nimble on | | | | The country needs to invest in railways, which are |
| its feet and adapt to changing market conditions in a | | | | cost effective and environmental friendly, as well as |
| way that many other businesses cannot. This makes | | | | inland waterways. However, there is no question that |
| the freight transport industry better able than many | | | | as the infrastructure improves, shipping companies will |
| others to withstand the challenges of the current | | | | adapt to improve customer service. |
| global economic crisis. | | | | As well as India and the China import market, |
| As some economies are cooling, others are growing | | | | another key driver of the freight industry in recent |
| and the international freight industry will adapt to | | | | years has been the expansion of the EU. As |
| accommodate this. | | | | companies have revamped their pan European |
| The current economic crisis and in particular the | | | | distribution strategies in response to the challenges |
| decline of the US economy will have a significant | | | | and opportunities of the recent expansion of the EU, |
| impact on the trans Pacific and trans Atlantic freight | | | | so freight forwarders have increased their own |
| transport trade, but growth of intra Asian volumes | | | | knowledge and networks to provide new services in |
| are likely to go some way to offset this. | | | | response to customer demand. |
| As well as the growing importance of the China | | | | |