Prospects of the Cargo Sector in the Upcoming Scenario.

The UK and Pakistan have had long cordial relations and these relations are not only strong on the Government level but also on the public level. The interaction between the two countries is getting stronger day by day. It would be of great importance to quote here that at present, the UK is hosting more than one million Pakistanis as its citizens.

The Pakistanis settled in the UK are playing a vital role in uplifting the economy of both countries. And through the Cargo to Pakistan in the form of air cargo and sea cargo, there is a substantial flow of goods between Pakistan and the UK.

The Economic Share of Cargo 

I look at the global level, it comes out that after the United States, and the UK is the second biggest exporter of services. And there is no arguing in saying that the UK economy is prospering well and the freight and logistics sector is playing a substantial role in this context.

The fact can be verified from the sector is contributing USD 118.3 billion to the economy of the UK. In this regard, it would be pertinent to mention here that healthy growth of automobile sector and manufacturing industry would further boost the freight and logistic sector in future.

UK to Pakistan Cargo

Among the various modes of transportation like road, rail, van and intermodal, road freight is the biggest that covers the huge transport network. The reason behind it is the major infrastructure that is spread all around us and even up to far-flung parts. Hence, almost 90% of inland cargo occurs through it.

Then comes the Rail cargo usually for huge cargoes. Hence, in the past years, the revenues coming from the road cargo increased substantially. In this context, the report of the World Economic Forum is worth mentioning where it is has been concluded that the UK comes at 27th position in terms of better road infrastructure.

The UK Government is taking many initiatives to strengthen further road network in the country to have better access. It is envisaged to have smarter motorway network, maintenance of the existing roads, and renewals. This would surely boost the road freight in future.

Brexit Post Scenario Period and its Impacts on Cargo 

UK Logistic Industry survey reveals that there is a serious concern among the businessmen especially about cargo industry about the threat imposed by the Brexit Transit Period. Various factors are affecting the cargo like sterling weakness, UK interest rates, slow UK growth and above all the uncertainties of the Brexit.

The uncertain situation developed is mainly due to the exit of the UK from the European Union which has severely impacted the cargo industry. As the UK imports natural resources from other European countries, certainly, the quitting from the Brexit would affect the UK economy greatly.

It is expected that due to this post Brexit scenario, severe trading conditions could arise like trade tariffs, increased commodity and finished products prices, and fuel prices also. The increased fuel prices would have an impact on the end-users.

Cargo Airlines

It is painful that under these circumstances that cargo companies are going to increase their service charges of cargo deliveries and no doubt the consumers would be affected badly by this.

The Strong Developments of Cargo between the two Countries

The cargo deliveries between the two countries are taking place through the air and sea cargo. Urgency based goods and goods which can be packed easily in the planes are sent through the air cargo while luggage which is huge and odd-shaped is sent through the sea cargo.

It is worthwhile to mention here that sea cargo is though cheaper but it takes huge time to deliver the delivers. However, the attraction in air cargo is the rapid disposal and low documentation work with quick and secured deliveries.

The process of sea cargo involves various forms like port to Door Sear Cargo, Port to Port Shipping, Container Shipping and Freight Forwarding. Sea freight is slow goods flow but it is cheapest and it is transported by tankers, reefers, and containers. Huge machinery, cars, agricultural instruments, and other daily used appliances are sent through Sea Freight.

First, the goods to be sent is packed in the containers and after that shifted to the vessels. Now, this vessel cargo is sent to the Karachi Port from where through trucks and tankers it is sent to all parts of the country. The sea cargo is accomplished in the very systemic procedure where the trade manpower executes all the steps involved in the cargo. With the arrival of information technology, seaports to be well updated and mostly all the steps are accompanied by mechanised systems.

So a quick, hassle-free and streamline procedure is adopted to make the delivery at the ports go out. Custom duties rules are always troublesome at ports and there is a dire need to relax them so that cargo basemen in Pakistan could get their deliveries easily without any undue hindrance.

ITC i.e. Independent Transport Commission on his concerns about the threats imposed to the cargo industry in the UK has warned that the cargo industry is facing undue and unbearable pressure due to environmental legislation, fast global connectivity patterns and cost escalation. And it was also emphasised that if immediate relaxations are not made in this context, the cargo industry would have an irreparable loss.