With the shifting future of the global economy, there is a constant change in the shipping industry. These are not just the environmental changes that are keeping the ocean freight forwarding industry in flux, but even the economic, political, and apparently, the technological changes. Different freight forwarders or shipping companies in the UAE and the world are working hard to accommodate these changes as much as possible. The changing job market, international trade, and, of course, technology is a few factors that are adding to the challenges of ocean freight forwarding. In this article, we will discuss the top 7 challenges the ocean freight forwarders must deal with.
The ongoing fluctuations in the global economy are pushing ocean freight forwarding companies to stay wary of environmental factors, mounting shipping costs, inflation, and trade wars. The freight forwarders must work keeping these issues in mind. They can’t give in and have to ensure a reliable supply chain despite the global change. Many ocean freight forwarding companies have already started working towards solving such future issues.
To deal with the issues we discussed just now and other considerations, the ocean freight forwarding industry is trying to embrace the newest technology. However, the rapid rate they are accommodating the change is making it even more complex to synchronize things completely with the standardized process.
Innovative tools are being used by ocean freight forwarding companies for effective optimization, communication, and tracking while managing and moving cargo internationally. They are making use of the latest technology implementations like advanced tracking systems, supply chain visibility, and electric vehicles.
This one is one of the major concerns the ocean freight forwarding industry is going through. Though, freight forwarding companies are employing techniques like Drayage shipping that optimizes travel & transport and reduces the cost of fuel, a large part of the overall cost of the industry is accounted for by fuel. Discovering new and innovative ways for streamlining this process, optimizing the travel routes, and cutting the fuel costs is still one of the biggest challenges of the ocean freight forwarding industry.
Though the ocean freight forwarding industry is exploring various fuel alternatives like hydrogen or electric-powered vehicles, the setup for electric trucks would be needed for these alternatives that may be some years ahead of us.
When cargo moves between different countries, the shipments must be compliant with the local laws, rules, regulations, and fees. Moreover, these rules keep on changing with the change in place and maybe complex to understand. It depends on where you are forwarding the shipment. For different locations, these government and global regulations will change. It is on the part of the ocean freight forwarding company to remain up-to-date with the shipping practices.
Whether it is fuel emissions or oil spills, the ocean freight forwarding industry has to face numerous environmental issues. The transport vehicles work by burning fuels that too mainly diesel, which releases several harmful chemicals in the surrounding.
Over time, the ocean freight forwarding industry contributes considerably to the already prevailing pollution and causes harm to the oceans and wildlife. Therefore, one of the colossal challenges ocean freight forwarding companies are facing is sustaining effective and reasonable shipping practices that would lower pollution.
Like you need a driver for any vehicles as such, you would need one for moving cargo between the drayage points. Though with drayage shipping or short-haul you don’t need a long-haul truck driver, the dearth of drivers persists. Either the drivers are retiring or do not continue with the job for long. However, the trucking companies are putting all their efforts to make the job alluring to ex-military personnel, women, and younger people. The functioning of the ocean freight forwarding industry is significantly dependent on the trucking labor force.
The ocean freight forwarding industry involves multiple global shipping partners working in conjunction with moving cargo. There may be a lack of synchronization hampering the customer service for the ocean freight forwarding clients. Being a freight forwarder, you need to ensure that your shipping partners share correct and well-timed information with you so that you could provide outstanding customer service. It could differentiate you from your competitors.
The takeaway from the above discussion would be to keep up with the rapidly evolving world if we want to ship cargo. Innovation is the key to resolving all these challenges. Try employing progressive policies and action plans to help your client carry out the business uninterrupted. Like said earlier, adopt innovative solutions to deal with the ocean freight forwarding challenges. Last but not least, provide the ultimate customer service for your clients to keep coming back to you.
18 September 2021
