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These are the periods once the company is doing well and negatively, respectively. The same as every company, the freight forwarding business also has a share of its challenges.
These are barriers that hamper the smooth functioning of the freight forwarding market. A nicely organized freight forwarders association must expect these challenges and have plans in place to fight them when they happen.
A freight forwarding business that waits for these struggles to manifest themselves prior to making sufficient preparations is leading to its failure.
Mechanisms will need to be set up to cover any unexpected events which may often cripple the company. Including setting funds aside to cater to crises and dangers which can't be predicted with certainty.
An increase in fuel costs has been a significant aspect that has affected the cargo market. On the other hand, the cargo forwarding firm cannot be raising its cargo prices every time there's a rise in gas rates.
This could brand a business to be quite unreliable and expensive. This usually means that a cargo company must balance between stabilizing the cargo prices and earning gains at precisely the exact same moment.
The cost set therefore must cater for all costs and render some gain in the long run. In case the established freight prices are large, an individual would lose customers as a result of stiff competition that prevails in the freight forwarding market.
An increase in gas, therefore, poses a significant challenge to the cargo industry as all their vessels are powered with gasoline.