Abstract: Freight forwarding plays a vital role in global trade by facilitating the seamless movement of goods across international borders. Freight forwarders act as intermediaries between shippers and carriers, managing logistics, customs clearance, documentation, and risk assessment. While they contribute significantly to supply chain efficiency, they also face numerous challenges that impact operational effectiveness, service quality, and profitability. These challenges arise from regulatory complexities, geopolitical issues, technological advancements, rising operational costs, environmental concerns, and evolving customer expectations. Understanding and addressing these challenges is crucial for the industry's sustainability and growth.
Compliance with international standards such as the International Maritime Organization (IMO) regulations on container weight verification and emissions control adds further complexity. Failure to adhere to these regulations can lead to delays, penalties, legal disputes, and reputational damage. Additionally, security regulations, including the Verified Gross Mass (VGM) requirements and the Customs-Trade Partnership Against Terrorism (C-TPAT) program, necessitate accurate documentation and strict adherence to guidelines.
Additionally, Brexit has added complications to trade between the UK and the European Union, requiring freight forwarders to navigate new customs and compliance requirements.
Freight forwarders must balance these rising expenses while maintaining competitive pricing and service quality.
Digitalization has improved efficiency through freight management systems, blockchain, artificial intelligence (AI), and the Internet of Things (IoT), enabling better tracking, automation, and cost optimization. However, many freight forwarders, particularly small and medium-sized enterprises (SMEs), struggle with the high investment costs associated with adopting these technologies. Moreover, cybersecurity threats such as data breaches and ransomware attacks pose a significant risk to logistics companies, potentially disrupting operations and exposing sensitive client information.
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Keywords: Regulatory Compliance, Digital Transformation, Cybersecurity,Sustainability & Customer Expectations

| DOI: 10.17148/IARJSET.2025.125249