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Sea Freight Transportation Obstacles

Parkin Greg by Parkin Greg
June 28, 2022
in LOGISTICS
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Sea Freight Transportation Obstacles
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There’s nothing better than sea freight transportation for hauling heavy and bulky cargoes. Compared to air freight, it is safe, efficient, and much more cost-effective. Additionally, it’s more environmentally friendly compared to road and air freight. Your business will benefit from sea freight if you need to transport goods internationally.

Despite this, ocean freight shipping faces a few significant challenges that require creative solutions, such as hiring a freight forwarder. Sea freight industry owners in the UK should be aware of these unique challenges.

Expenses associated with sea freight

Transport by sea has always been regarded as the most cost-effective option. Despite this, fees and costs are increasingly rising.

Modern supply chains are dependent on ocean shipping, yet many shipping companies do not know how to address this issue.

Technological upgrades have led to an increase in sea freight costs due to changes in taxes, penalties, and expenses. It is possible to control the high charges associated with sea freight through several measures.

Measurement: It’s essential

Patience is often the best strategy when it comes to managing prices. How does that work, though? A fair rate is secured by shippers knowing the actual market rates and refusing to simply accept any price.

Paying attention to your competitors and peers is one of the best ways to manage ocean freight transportation processes.

Increase Volume

Increasing shipping volume and seeking business partnerships are practical ways to control freight shipping costs.

Baseload is typically guaranteed by cargo consolidation, but not all shipping companies have steady cargo volumes to consolidate shipments.

Partnering with other shippers can solve this problem. It’s likely that you’ll be able to get better rates and terms of contracts when you partner with another experienced company.

Finding out about unforeseen fees and eliminating those

A part of the process involves negotiating sea freight rates. There can also be hidden costs to consider, which can make the process difficult. These occur generally during loading or discharging at the port.

Therefore, it’s essential to read any contract’s fine print and ensure there are no detention fees or other costs incurred if customs clearance is slow.

Working with a Freight Forwarder

Freight forwarders are probably the best solution for getting the most competitive sea freight rates, especially if your cargo volume is limited.

As a freight forwarder, you work with many carriers and always know which offers the best price. In the event of an issue, sea freight forwarders can easily switch carriers as they are not actually using their vessels.

Sea Freight’s Availability and Performance

Shipments must also be secured, which is a major concern in the sea freight shipping industry. Ocean freight transportation becomes less reliable as a result of this pressure on carriers.

Cargo that has been rolled is a common issue. Often, containers are not loaded because of setbacks in customs, improper documentation, or overbooking.

The ship also skipped ports, sailed blankly, and experienced delays. We suggest a few solutions.

Commitment from both sides

Carriers and shippers can experience similar frustrations, such as rolled freight and unfulfilled capacity. Both parties have learned that the repetition of this occurrence has led to binding agreements that ensure both parties get what they want.

Generally, that means as a shipper you promise the carrier a certain amount of freight will be delivered. By agreeing on pricing, they will be less likely to skip ports.

Bundling ports for maximum efficiency

Shipping lines gain access to a wider range of carriers when shippers accommodate carriers regarding port possibilities. Having more capacity, scheduling, and even reducing costs can lead to many possibilities.

Because carriers don’t receive or discharge their cargo at a single port, port bundling gives them more flexibility.

Sea freight enters a new phase

In sea freight logistics, reliability and price are definitely two of the most important factors, but they’re not the only ones. It is also important to mention global political changes, cargo losses, environmental regulations, and labour shortages.

However, the reliability and price of sea freight determine whether or not the business will rely on this mode of transport in the future.

By hiring a reputable freight forwarder, you can cut costs and optimise the entire process. GenX Freight offers affordable services and expertise to companies in the UK.

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