The global shipping network of carriers and shippers poses various issues and threats to ocean freights. As the market is recovering from the 2020 crisis, it requires a lot of pending work to complete. The ocean freight industry has to adapt to the new normal within the global supply chain network. Today, we’ll discuss the top 10 ocean freight challenges.
Top 10 Ocean Freight Delivery Challenges
Let’s discuss the top 10 ocean freight challenges, and they’re as follows;
Outdated Internal Processes
Ocean freight operating its business in the transportation industry, various old methods and processes don’t give you effective results. Practices and strategies that are used to promise the desired future growth and success, now negatively impact the profitability of the company.
New and latest processes and strategies would help you to efficiently manage the ins and outs of cargo containers in the ocean transportation lanes. It requires you to accept the change and employ the latest technological tools and equipment; openness to change would help companies to successfully carry out ocean transport.
When it comes to managing the local or global supply chain processes, it needs open communication and collaboration with various stakeholders and parties. The reason ocean transport companies aren’t growing is due to limited communication in their SC and logistical processes.
However, there are various technological tools and equipment available nowadays. They amplify your capability to improve communication processes and ocean container visibility. The tracing feature would resolve many problems.
Poor Resource Management
The 2020 crisis has had a very bad and devastating impact on the supply chain and logistical operations. The crisis pointed out the issues and weak areas in the industry. For better and improved ocean transport, there should be collaboration and coordination among 3PL, broker, shipper, and carrier. Implementing and developing a collaborative environment would make things easier for management. It allows them to efficiently utilize time, workforce, and resources.
Limited Customer Loyalty
Customer satisfaction plays a key role in the growth and success of the company. Limited or poor visibility and transparency within the ocean freight supply chain network would result in the form of late response time and delayed deliveries.
Personalized shipment would amplify the response time and visibility of carriers and shippers. Data analytical and prediction tools would carriers and shippers avoid delays and disruptions.
Capacity & Availability Issues
The global supply chain network experiences the problem that the shipping vessels don’t satisfy the existing demand for cargo transport in the ocean transport. The brokers, carriers, and shippers don’t have sufficient containers and ships available; they would perform much better if they had it. However, it requires collaboration and communication among various stakeholders and exploits various opportunities.
Workforce Shortage for Repetitive Tasks
Many experts have analyzed the urgent need for automation technology and the latest tools and software in the supply chain and logistical industry. Many people aren’t accepting and adapting to the idea of implementing the latest technology. Companies could deal with ocean freight issues by training employees and making them self-sufficient.
Predictive Planning Issue
The transparency of ocean containers plays a key role in port-to-port transportation and global shipment. It requires them to implement predictive and tracking visibility and transparency for the smooth functioning of their operations. However, the focus of businesses and companies should be on inbound shipment to make sure the following;
- Cargo distribution
- Container relocation
- Loading and unloading
- Right scheduling
The timely delivery of shipment requires proper cash flow and on-time payment. It would be difficult for carriers and shippers to perform their operations without it. Carriers should carefully manage the finances of ocean freight transport. However, they should quickly respond to invoice errors, shipment claims, and payment delays, and timely send and receive payments.
Delays and disruptions are bound to happen. When they start occurring regularly, they will negatively impact the supply chain and logistical operations of your business. It would be highly difficult for the managers to analyze the performance without proper tools and equipment. Updated data and timely shared among various stakeholders would help companies to recognize weak areas and fix them on time.
In order to improve the visibility and transparency of containers, carriers should invest a lot of resources and expenses on the tech equipment and tools. Ocean transport carries a lot of costs, fees, and expenses; it often surprises carriers and shippers. In order to decrease the additional costs and expenses, it is important to avoid the fees and surcharges as much as possible.
Conclusion: Top 10 Ocean Freight Challenges
After an in-depth study of the top 10 ocean freight challenges; we have realized that ocean freight plays a key role in global supply chain and logistical operations. If you are learning about the challenges and issues of ocean freight in logistics; then you should keep in mind the abovementioned problems and issues.
Ahsan is an accomplished researcher and has a deep insight in worldly life affairs. He goes Live 3 days a week on various social media platforms. Other than research writing, he’s a very interesting person.